To read the full FT article, Google the title above.
Vodafone will make its first move into the “multiplay” market of bundled telecoms and internet services with plans to match BT’s fibre broadband coverage of the UK. The telecoms group will reveal plans in coming weeks for a push into the UK consumer broadband market as rivals such as Sky and BT add mobile to their fixed line services.
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In response, Vodafone will launch home broadband this spring before adding a cloud-based TV service later in the year. The company will then begin selling “simplified” bundled mobile, internet and TV services, according to one person with knowledge of the plans. Vodafone will use network technology being deployed by BT’s Openreach division to reach a much higher population at higher speeds than the traditional local exchanges.
It is planning to connect its existing fibre broadband network to about 1,000 of BT’s larger exchanges to reach more than four-fifths of the country by the summer. The group has already started technical trials. The company will use cloud-based technology to provide TV content via the internet using a simple TV set top box with a bundled pricing plan for mobile customers. Vodafone is expected to provide more details of its European fixed broadband and TV services when it publishes third-quarter results on Thursday.
It's a major boost for the velocity of money in India. The mobile banking impact is a very good thing for such a huge population that has been way behind the world as far as communications infrastructure. Just mind boggling that India had an operational telegram service until mid 2013. If it weren't for the mobile phone infrastructures being built out I would imagine that India's telegram network would still be open for business. Mobile payments boosting the velocity of money should be something the even the jaded tax enforcement folks in India should be cheering for approval here. It provides an electronic money trail they can use to levy taxes. My hope is VOD uses its MVNO with TMUS to bring its mobile payments/banking designs to the U.S. market. A true global P2P mobile money moving infrastructure.
Agreed Smalls, Most of these so called experts, (authors) couldn't tell their #$%$ from their elbow. I’m sure VOD are in good hands under Colao.
Feb 3 (Reuters) - Vodafone Group Plc's Indian unit said on Tuesday it had applied to the country's central bank for a permit to operate a payments bank, which are aimed at bringing basic banking services within the reach of millions.
Vodafone India Ltd is exploring options for partnerships, it said in a statement.
The recent piece about the need to merge as because VOD is a pure play can be voided. Obviously the fellow missed the news a couple months ago that VOD will leverage up its CWW fiber infrastructure to offer TV BUT those authors don't appear to understand what LTE-A and 5G technology will do to the fixed line market. One recent news agency review touched on LTE-A bandwidth and they noted they were considering a drop of its fixed line provider. They can get 4K streaming TV over mobile spectrum. 5G technology will be able to run upwards of 10 gbps, maybe as high as 50 gbps according to Ofcom 2020 expectations. What the heck to do you need fixed line into each home for with 5G running those kinds of speeds? You just need a fiber backbone into the neighborhood. The guy should be writing a piece about BT being forced to go mobile or be left in the dust.
I took close to six months from the VZ wireless sale announcement to get that transaction "priced" in although financing was even put in place. Market can be slow to price firm deals like that into price. Going to take a little movement in the EU econ and equity markets to build in any kind of reverse in the trend towards growth trajectory. Do some homework on VZ's market position and the fact that they have been infrastructure leader in the U.S. VOD is becoming VZ of Europe dominator with the "Project Spring" deployment of 90% coverage of 4G LTE. Some LTE-A starting to be deployed as well.
Spot on Smalls, AT&T will find itself on life-support, soon after the DTV deal. Kill T Roy should take note. Its his money on the line, not mine thank god.
with gas down , people will spend more on phones meaning more users, video feeds, more money for VOD stay long . The icing is VOD has no competitors cutting pricing. should blow through $40
Sentiment: Strong Buy
VOD is high class. DTV is the white tranny with a tan that T thinks is a hot latino babe. The herp would be mild to what DTV will give to T. Time Warner survived the AOL syphilis as they were pretty solid financially when it contracted that disease from AOL. AT&T is already having health problems with the mobile price wars, pension liabilities, let alone dividend expense chewing up 97% of free cash flow. AT&T already has health problems and it is going to very high debt leverage to poke the tranny with a disease that it could even kill them in their weak health. Going to take a lot of antibiotics and a long and expensive trip to the infirmary.
Let me get this straight. Stephenson is buying a satellite TV provider in the same breath saying the biz model is not for the long run with TV going to OTT (vs. a couple months ago saying DTV was to avoid bandwidth consumption) of which OTT will have TONS of competition. Then on the other hand he is saying someone is going to make a lot of money in Europe 4G deployment. He chose the TV bundler play whose business model is about to get crushed. Some CEO you have there at T Killroy.
Google the title above to read he full Seeking Alpha article.
•The economic downturn in Europe has weakened the company's earnings in recent years.
•The company's $10B investment in infrastructure in Europe will help it become the market leader in the LTE market.
•5% expected dividend yield in 2016 will entice investors.
I do have to disclose Facebook is targeting EU fiber as well and launched a fiber network. How far they pursue it is another matter. Vodafone is among the very few incumbet telcos already targeting the 5G infrastructure. VZ is on a moderate basis but limited to a regional fixed line market. The joined Comcast/Time Warner would have a real good position if they turn towards 5G technology instead of stalling the deployment of high bandwidth. It will have to be reasonably priced and without extortion toll booth for data or the likes of Google and Facebook will be kicking the communications door off its hinges. Those already with high debt leverage, unable to reposition with high bandwidth infrastructure as a primary ISP are fooked. Voice will be just an add on bundle like TV bundle products. Being the choice ISP is where the future is at. T is really ignorant leveraging up and diluting shareholders to purchase the dinosaur delivery model in satellite TV. The TV middleman game in bundling is about to have its profits deep sixed by IP TV delivery.
It's all central bank shenanigans. To be honest we would do better to follow the price of the common on the London stock exchange. I think that in the throes of wild currency fluctuations caused by central bank monetary policies, ADR prices are misleading. If we start selling ADR shares to capture currency gains, we might as well go into forex trading. From what I hear, nobody actually makes money in the long run from forex trading...some of those firms recently went out of business from the Swiss-Euro decoupling for example.
The dollar is strong because people are fleeing to it in anticipation of Fed actions that may or may not happen, and anticipation often leads to disappointment in the markets from my experience. Better to hold and get paid 5-6% while the company you bought grows through whatever the world brings to bear tomorrow.
Well said Ejinecer. The ADRs here have been hit hard by the strength of the U.S. dollar rally over the great swath of global currencies. If we had the £ strength of six months ago we would be looking at an ADR today of $40. For us ADR holders here, the impact of currency drops and gains can be quite influential in price performance. Some like Barclays have recently been calling for further weakness with a drop into something like the 1.43 area if I recall accurately. There is however a counter theories given the new ECB QE. The last couple paragraphs in particular.
U.K. Consumers Push Back Against Drag From European Weakness
Before the financial crisis the £ was bouncing around the 1.80s. I really thought that was where it was headed until the U.S. dollar strength ripped the hear out of the oil price (keeping in mind oil is priced in $ around the globe) and killed the inflation measure for many economies including the U.K. A big skewing of the economic picture when low oil price really could be positive with increased spending capacity by the consumer on the back of oil hit. Note that in the referenced above piece that consumer spending was at high levels not seen for a decade. Now you have QE just across the channel. Not sure why Barclays is looking for £ to go lower when all the other readings of the economy are pretty strong.
Smalls, Agreed Motley fool is about as knowledgeable and full of half truths as the Clown on AT&T MB. Regarding France, yes VOD sold its 44% stake in SFR in 2011 for £7Bln.