Vodafone Chief to Use Kabel Deutschland as Hub for Expansion
Vodafone Group Plc (VOD) plans to use Kabel Deutschland Holding AG (KD8), the cable company it bought last year for more than $10 billion, as the “core” of its fixed-line business in Germany and potentially other countries, Chief Executive Officer Vittorio Colao said.
The company, seeking to revive growth, is also targeting new services such as security to expand beyond the wireless business, Colao said today at a press briefing at the CeBIT conference in Hanover, Germany.
“It’s about using Vodafone more and more outside mobile: we’re going into hosting, into security, into protection, into entertainment,” Colao said. “Watch Vodafone Germany because it will always be one to two years ahead of the others.”
Copy and past of Pumpdie's post from Feb 3. Sounds like Colao and Stephenson have the same vision.
Indeed, while AT&T’s fourth-quarter headline numbers and wireless margins were good, they also highlighted how tougher competition in the rapidly maturing US mobile sector is making it harder to win new customers.
For example, although AT&T’s mobile unit added 566,000 monthly contract subscribers in the quarter, it trailed behind both Verizon Wireless and T-Mobile US, the fourth-largest US mobile operator, which added about 869,000 monthly customers.
As Craig Moffett, of MoffettNathanson Research, said in a note to investors: “News that AT&T is putting off its flirtation with Vodafone for at least a little while puts the spotlight squarely on their domestic business . . . and AT&T needs some domestic help.”
"News that AT&T is putting off its flirtation with Vodafone for at least a little while puts the spotlight squarely on their domestic business . . . and AT&T needs some domestic help"
- Craig Moffett, MoffettNathanson Research
For six years, most of the growth in the US mobile sector, and in AT&T’s mobile business, has come from the rapid adoption of smartphones and surging demand for mobile data. But 70 per cent of AT&T’s subscriber base now own smartphones and many that do not are less affluent customers on pre-paid wireless plans.
AT&T is betting that its acquisition of Leap Wireless will help it persuade these “value” customers to switch to smartphones, and that other initiatives including its push into growth markets such as home security and automation, machine-to-machine communications and connected cars, will fuel the next wave of wireless growth.