While spnning off VZW sounds attractive, I don't think majority shareholder VZ would allow it. No doubt the partnership agreement that VOD has with VZ prohibits it from spinning off some or all of its VZW stake without VZ's approval. For example, VZ would not want VZW to trade publically, which would force it follow a bunch of SEC regulations and require disclosures and filings.
There are three primary scenios for VOD: (1) Keep things as they are, (2) Sell its minority stake in VZW to VOD, or (3) Sell VOD to (or merge with) VZ.
Assuming they can agree on price, Scenario (2) means paying a huge amount of value-destroying taxes. VOD quite possibly could reinvest the cash into less attractive and lower return EU telecommunications assets.
Scenario (3) means both VZ and VOD have to convince their regulators, politicians and shareholders that the deal makes sense. It also requires the firms to agree on price, management and governance issues. These are huge hurdles, to say the least.
This leaves scenario (1), where VOD continues to benefit from its share of VZW, one of the best pure-play wireless firms around. I predict things will remain as they are because various critical financial, regulatory and political issues are severe headwinds to getting a deal done.
I think that Vodafone should buy out Verizon Wireless and name it Verbage! No, seriously though, all that cash that is coming in from the dividend? They can't let that go. Vodafone went 7 years as a business partner with Verizon without getting any money from Verizon. SEVEN YEARS!!!!!