Friday 14 February 2014

Vodafone spectrum acquisition




Vodafone the second largest ( behind China Mobile) mobile telecoms company in the world. I have a holding in my income portfolio (epic code: VOD).





Vodafone informed the market this morning that it had been awarded spectrum licences in 11 telecom circles in India in both the 900MHz and 1800MHz band for £1.9bn.  For Vodafone the key areas were Mumbai, Delhi and Kolkata, where the more efficient 900Mhz band purchase was a renewal of existing rights that were due to expire in November 2014.


Eight telcos participated in the spectrum auction in what is becoming a fiercely competitive market, with the top three operators Bharti Airtel, Vodafone & Idea Cellular consolidating their positions.


The prices paid are considered to be at the top end of expectations and may place a strain on some of the less well financed operators affecting their ability to roll out new technologies and maintain high service levels.


Of the total cost of £1.9bn for Vodafone, £540m is payable in their financial year 2014 and the balance by instalments starting in 2017.
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2 comments:

  1. Anonymous16 February 2014 at 09:28

    Hi Jeff, I stumbled across this blog and it is quite interesting to me. Have you posted your current portfolio (less values obviously)?

    ReplyDelete
  2. JeffXIII16 February 2014 at 23:48

    Hi,

    I essentially run four portfolios - Listed Income, Listed Growth, Private Equity (VCTs + EIS) and Fixed Income (corporate bonds/Zopa/Funding Circle). My comments here currently relate to my Listed Income & Growth portfolios.

    Here is a post that details my Income Portfolio:

    http://jeffxiii.blogspot.co.uk/2013/11/income-portfolio.html

    If you have any questions I'll try and answer them.

    Regards,
    Jeff

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