Vodafone share price: Group acquires spectrum in India

on Oct 7, 2016
Updated: Oct 21, 2019

Vodafone’s (LON:VOD) unit in India has acquired spectrum in the country, the blue-chip telco has said. The deal, which followed a government auction, is worth more than 200 billion rupees (£2.36 billion).

Vodafone’s share price has been steady in London this morning, having added 0.36 percent to 223.30p as of 08:31 BST. The advance is largely in line with the broader London market, with the benchmark FTSE 100 index having added 0.42 percent to stand at 7,029.65 points. The telco’s shares have climbed just under seven percent over the past year, and are up by nearly one percent in the year-to-date.
Vodafone announced in a statement this morning that its Indian unit had acquired spectrum in all its key telecom circles in the spectrum auction for a total cost of 202.8 billion rupees (€2.74 billion), for a term of 20 years. The group added that the new spectrum boosted the coverage, capacity and speed of Vodafone India’s 4G data services in its key circles, in addition to the existing 2G and 3G voice and data capabilities.
Vodafone added that its Indian unit now had 17 circles with 4G capability, covering 91 percent of the company’s total revenues and 94 percent of mobile data revenues. Reuters meanwhile noted in its coverage of the news that the FTSE 100 group was the biggest spender in the auction which raised a total $9.9 billion for the government.
The 20 analysts offering 12-month price targets for Vodafone for the Financial Times have a median target of 260.00p, with a high estimate of 310.00p and a low estimate of 155.00p. As of September 30, the consensus forecast amongst 32 polled investment analysts covering the stock has it that the company will outperform the market.
As of 08:50 BST, Friday, 07 October, Vodafone Group plc share price is 230.03p.

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