Vodafone (LON:VOD) has inked a deal with Oman which will see the blue-chip telco roll out a new mobile network in the Middle Eastern country, the FTSE 100 company has said. The update comes after the group updated investors on its quarterly performance in July, delivering a decline in revenue.
Vodafone’s share price has fallen deep into the red in today’s session, having given up 1.27 percent to 154.96p as of 09:15 BST. The group’s shares are underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.42 percent lower at 7,280.61 points. The group’s shares have lost more than four percent of their value over the past year, as compared with about a 1.3-percent fall in the Footsie.
Vodafone partners with Oman
Vodafone announced in a statement today that it had agreed a strategic partnership with Oman Future Telecommunications in the Sultanate of Oman as part of its Partner Markets programme. Under the non-equity deal, the companies will work together to roll out a new mobile network and develop a number of new services using the Vodafone brand in Oman to drive the next stage in the development of the country’s telecommunications market.
“I am delighted to start this strategic partnership with OFT, and I look forward to developing this new network operator and Oman’s digital economy,” Vodafone Partner Markets Chief Executive Diego Massidda commented in the statement. I am confident that this will build into a strong, lasting relationship that will benefit customers of both companies.”
The development of the new network under the Vodafone brand in Oman will commence immediately with commercial launch planned for the second half of next year.
Analysts on FTSE 100 telecom group
Berenberg Bank reaffirmed the blue-chip telco as a ‘buy’ this week, with a target of 180p on the Vodafone share price. According to MarketBeat, the FTSE 100 telecom group currently has a consensus ‘buy’ rating and an average valuation of 186.89p.