Vodafone set to bid for C&W fibre broadband network

Vodafone could be in pole position to acquire fibre optic broadband network operator Cable & Wireless (C&W) after rival bidder Tata Communications pulled out of the race.

India-based Tata confirmed it has been unable to reach an agreement with the cable company, which is valued at around £1 billion, reports Reuters.

While Tata will not be making an offer, a C&W spokesman revealed that the telecoms firm is "still in ongoing talks" with Vodafone.

The world's largest mobile operator by revenue, Vodafone would benefit by gaining access to a fibre optic network that could increase capacity for customers looking to take advantage of mobile data services.

At present, it pays BT around £200 million per year to offload data traffic to the telecoms giant's fixed-line network.

Demand for mobile bandwidth is expected to increase over the coming years, with Ericsson claiming last November that volumes will grow tenfold between 2011 and 2016.

This substantial rise will largely be driven by online video viewing, the company predicted.