Bottom Line: A tie-up to take on BT could put Voda within range of new growth
VODAFONE’S investors were yesterday rightly pleased about a plan for the company’s future that doesn’t include the initials A, T and T.
With a takeover from the States off the cards for a few months, and its Verizon stake gone, the telecoms giant has got some time to put its affairs in order.
Pressing on with Project Spring, the firm’s long-awaited wireless internet upgrade plan, is a decent enough endeavour. But it was Vittorio Colao’s comments on a possible mobile TV tie-up that grabbed the most interest.
BSkyB, its possible partner, is keen to find ways of besting its new rival BT. And a chance to enjoy more of the benefits of premium broadcasting – a service that Europeans appear willing to pay for, while the mobile phone contracts sink ever lower in price – could be a long-term winner. Just a few more quarters of terrible trading in Europe and a 4G upgrade to get through first.