Vodafone share price: Group to target consumer broadband fixed-line market?

on Nov 13, 2013
Updated: Oct 21, 2019

iNVEZZ.com, Wednesday, November 13: Vodafone Group Plc (LON:VOD) could be looking to target the consumer broadband fixed-line market, The Times has reported, quoting the teleco’s chief executive Vittorio Colao. Vodafone, which yesterday revealed a drop in quarterly service revenues, will spend an extra £1 billion on upgrading its network in anticipation of a strengthening European recovery. Vodafone’s share price is down around half a percent in London today.

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**Vodafone CEO hints at tack change**
Trade these shares now through Hargreaves Lansdown from £5.95 per deal.
When asked about the prospect of targeting the consumer broadband fixed-line market, Colao told The Times that “a time will come”.
“It might come tomorrow, it might come in the next few years,” he noted, acknowledging that Vodafone was likely to change tack and was actively considering its options.

While the company is regarded predominantly as a mobile phone operator, it owns a large fixed-line network for businesses following its takeover of Cable & Wireless Worldwide last year. Vodafone owns a host of consumer broadband and cable television assets in continental Europe where it competes directly with fixed-line companies.
Colao also told The Times that the company intended to keep its balance sheet ‘under-levered’ so that it could take advantage of takeover opportunities next year.

Vodafone is reported as itself being a potential takeover target of US telecoms giant AT&T. (Vodafone share price: AT&T considering takeover of UK telecom? – https://invezz.com/news/equities/6492-vodafone-share-price-at-and-t-considering-takeover-of-uk-telecom). The Times quoted Colao as dismissing the talk as ‘hypothetical’.
**Europe focus**
The CEO’s comments came as Vodafone yesterday said it would add an extra £1 billion to its Project Spring investment programme. The company will now spend £7 billion over two years with the bulk of investment going to Europe, where the company intends to deliver deeper 3G coverage and capacity and accelerate its 4G network build.

“We expect that during the next three to five years, Europe will definitely improve,” Reuters quoted Colao as saying. “Therefore, we prefer to have a stronger, more performing and more differentiated operation by then so that we can come out at a higher speed than everybody else.”

The telecoms giant yesterday reported a 4.9 percent decline in organic service revenue, which measures the group’s core mobile business, with the drop reflecting challenging conditions in Europe. (Vodafone share price eases on half-year report – https://invezz.com/news/equities/6734-vodafone-share-price-eases-on-half-year-report)
**As of 09:56 UTC, buy Vodafone shares at 230.60p.**
**As of 09:56 UTC, sell Vodafone shares at 230.50p.**
Trade these shares now through Hargreaves Lansdown from £5.95 per deal.
Prices can go up and down meaning you can get back less than you invest. This is not advice. Dealing services provided by Hargreaves Lansdown.
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