Vodafone share price: Group agrees network deal with Telecom Italia

on Feb 22, 2019
Updated: Mar 11, 2020
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Vodafone (LON:VOD) and Telecom Italia are planning to enter into a new infrastructure sharing partnership as they look to speed up deployment of fifth-generation mobile phone services, the companies have said. The telecom companies are also looking into a potential business combination of their respective passive towers located in Italy into a single entity.

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Vodafone’s share price has climbed into positive territory in London this morning, having gained 1.44 percent to 143.24p as of 08:42 GMT. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.24 percent higher at 7,184.94 points. The group’s shares have lost just under 30 percent of their value over the past year, as compared with about a one-percent fall in the Footsie.

Network deal with TIM

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Vodafone and Telecom Italia Group (TIM) signed a Memorandum of Understanding yesterday, outlining non-binding terms in relation to a potential partnership for active network sharing and an expansion of their existing passive sharing agreement.

“This partnership will allow us to generate significant benefits for our customers and other stakeholders, who will be able to enjoy the best 5G experience, made available in a shorter period of time and across a wider geographical area,” Aldo Bisio, CEO of Vodafone Italia, commented in the statement.

Analysts on Vodafone

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Deutsche Bank reaffirmed Vodafone as a ‘buy’ today, without specifying a price target on the shares. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 200.11p.

Earlier this month, the London-listed telecoms group selected Ernst & Young as its new auditor, replacing PricewaterhouseCoopers (PwC) because of the audit firm’s role as administrator to Phones 4U, which collapsed four years ago.

As of 09:15 GMT, Friday, 22 February, Vodafone Group plc share price is 143.24p.

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