Menu
Equities By Region Media Services UK

Vodafone share price rises as Italian unit snaps up 5G spectrum

Share this article!

Shares in Vodafone (LON:VOD) have climbed higher in London this morning as the group announced that its Italian division had acquired spectrum for 5G services. The news comes after it emerged last week that the group was looking to raise about €4 billion of hybrid bonds to back its deal with Liberty Global which will see it acquire the US group’s cable networks in Germany and eastern Europe.

As of 10:24 BST, Vodafone’s share price had added 1.33 percent to 162.00p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.09 percent higher at 7,481.43 points. The group’s shares have given up a little over 23 percent of their value over the past year, as compared with about a 0.2-percent gain in the Footsie.

Italian unit snaps up 5G spectrum

Vodafone announced in a statement today that its Italian division had  acquired spectrum to enable the deployment of new 5G technology for a total cost of €2.4 billion, in an auction by the country’s Ministry of Economic Development. The company said that it was further leading 5G trials promoted by the Ministry for Economic Development in Milan and its metropolitan area, and expects to have already achieved coverage of 80 percent by December 2018.

“Auctions should be designed to balance fiscal requirements with the need for investment to enable economic development,” Vodafone’s new chief executive Nick Read commented in the statement, adding that it was “critical that European governments avoid artificial auction constructs which fail to strike a healthy balance for the industry”.

Analysts on FTSE 100 telecoms group

Deutsche Bank reaffirmed Vodafone as a ‘buy’ last week, valuing the shares at 265p. According to MarketBeat, the blue-chip telco currently has a consensus ‘buy’ rating and an average price target of 234.71p.

As of 10:36 BST, Wednesday, 03 October, Vodafone Group plc share price is 162.06p.

Add Comment

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.