Vodafone Share Discussion Threads

[merry fisher] 25/2/2021 14:03

I was thinking the same stinger

[the stinger] 25/2/2021 12:22

Not a bad entry price now for medium/long term hold. Plus dividend

[spud] 25/2/2021 11:38

Sky and Vodafone Air Competition Fears of Virgin Media and O2 Merger http://www.ispreview.co.uk/index.php/2021/02/sky-and-vodafone-air-competition-fears-of-virgin-media-and-o2-merger.html Sky UK (Sky Mobile, Sky Broadband) and Vodafone have today published their responses to the Competition and Markets Authority‘s (CMA) on-going phase 2 investigation into the proposed £31bn merger between mobile operator O2 and broadband ISP (inc. TV, phone) Virgin Media, which raises a number of competition concerns. In theory, there shouldn’t be too many obstacles to the deal since both operators’ largely focus on different parts of the wider UK telecoms market. But in practice the CMA did recently raise some predictable concerns (here) about the merger’s potential impact on the markets for retail and wholesale mobile services, as well as the market for business leased lines (specifically those used to supply mobile operators / masts). For example, there’s a concern that Mobile Virtual Network Operators (MVNO) on O2’s network, such as Tesco, Sky Mobile and others, could potentially face service restrictions or higher prices for access, which might in turn lead to price hikes for consumers or force the MVNO providers to change operator (i.e. a reduction in competition by the backdoor). However, such gripes are fairly predictable and similar fears were raised against the previous merger between BT and EE, which still managed to pass through the CMA with only relatively minor adjustments. Nevertheless, it was inevitable that some of those impacted by the deal, either directly or indirectly, would have a few words to say about it. Sky’s Response In Sky’s case their main concern (here) is the understandable risk of “input foreclosure” (i.e. this arises if the merged firm were to stop supplying rivals). “O2’s incentives to provide wholesale mobile services on favourable terms will materially reduce as the Merged Entity pursues increased uptake of fixed/mobile bundles benefiting from its converged and vertically integrated operations … the Merged Entity will [also] have the ability to degrade Sky’s mobile service,” said Sky. Sky goes on to state that this fear is not merely theoretical because they claim to have already expended a “significant amount of time and resources” in order to protect Sky Mobile’s position against such a risk (a lot of the details here have been redacted). However, O2 and Virgin Media countered, in their own joint response (here), that the merged company “will have neither the ability nor the incentive to foreclose other MNOs and such a strategy would in any event have no material effect on competition in the retail mobile market.” Voda’s Response The situation is a bit more complicated for Vodafone because, on the one hand, they have a natural vested interest in disrupting the merger (the last thing they want is another fully converged fixed and mobile rival like BT/EE to fend off against). On top of that they also rely upon Virgin Media for a fair bit of their backhaul capacity and have a network (mast) sharing agreement with O2. Suffice to say that their response extends to 17 long pages (here). Vodafone Statement If this transaction proceeds, as mentioned above the UK market will be dominated by two operators that serve more than double the number of fixed and mobile customers compared to their nearest competitor. Procuring wholesale network products gives operators that do not have network or only have network in one part of the market (fixed or mobile) the ability to provide converged retail services. If converged network operators are allowed to follow an input foreclosure strategy and frustrate supply of these wholesale products to other operators in an increasingly converged market, the competitiveness of the overall market will suffer. Returns in UK telecoms markets are low, debt ratios are high and mobile network costs are set to increase substantially. This is driven by the need to replace Huawei technology, additional network security requirements being imposed and the roll-out of 5G technology, together with the need for additional 5G infill sites. However, the benefits for society of upgraded mobile technology are wide and meaningful. Fixed networks in the UK also require fibre investment and upgrading to ensure the ever-increasing technology needs of the UK are met. In considering [CONFIDENTIAL] the two clearly identified theories of harm, the CMA should consider this overarching longer-term potential harm for UK telecoms markets and focus on ensuring any remedies enable other competing operators in the market to credibly compete with the two very large-scale vertically-integrated operators by securing competitive wholesale access in both fixed and mobile markets. This will help ensure a more competitive enduring landscape, to the ultimate benefit of consumers. At this point it’s easy to forget that Vodafone has previously also discussed merging with Virgin Media, in fact they’ve done so on several occasions, but of course that never amounted to anything and in the end Liberty Global (Virgin’s parent) clearly found it easier to do a deal with O2 (Telefonica). Perhaps in another universe we might thus be attributing these complaints to O2 rather than Vodafone, but that’s not how things panned out. Once again, this is all very similar to the gripes that were levelled against BT and EE’s proposed merger some years ago and we suspect that it won’t be enough to prevent Virgin Media and O2’s deal either. None of this is to say that the CMA won’t require some sort of commitment from the merged company before they sign the deal off, but rather that any requirements will be resolvable. Meanwhile O2 and Virgin Media remain of the view that their deal is “pro-competitive” and will achieve closure by around mid-2021. spud

[spud] 25/2/2021 11:25

Can someone go and tap on diku's door please? I fear for his wellbeing! spud

[diku] 25/2/2021 09:41

What has it done since Y2000?...or since it disposed of Verizon stake?...the BOD has milked it...and the brokers talk up the company with recommendations xyz price targets on hope they win trading business...wider shareholders hung up high and dry...

[pensionbull] 25/2/2021 09:36

Holding Vod is a painful and uncomfortable journey for shareholders.

[diku] 25/2/2021 09:35

Maybe even a lower divi for VOD shareholders?...

[muscletrade] 25/2/2021 08:50

Zero, no special div has ever been mentioned as far as I'm aware. Any proceeds from Vantage spin off will be used to reduce debt.

[diku] 25/2/2021 08:50

Forget about special divi...any special divi and the share price will go down twice the special divi amount...when something is hyped up so much you know what the outcome is going to be...

[ny boy] 25/2/2021 08:47

Anyone know how much the proposed special divi is likely to be approx?

[diku] 25/2/2021 08:17

No matter how you slice it they are selling VOD to buy into IPO...VOD is a lost cause of a share...and how is the Indian stake coming along...

[vodman1] 25/2/2021 00:01

Jack Master 5 hours ago AMT should contact Nick Read and make a deal to purchase as much of Vantage Towers as possible before the late March spin off. I bet that Read would enjoy the large pile of cash that a sale to AMT would bring to his balance sheet. Perhaps Vodafone would want to do a JV or sale lease-back type of transaction with AMT to insure that Vodafone will have access to Vantage Tower assets for its 5G network in the future. AMT would be happy to have Vodafone client revenues and revenues from other EU communications firms who would like to lease Vantage towers in the future. Vodafone needs to pay off expensive debt and AMT has been expanding its international tower asset base. Both firms would clearly benefit if an agreeable price could be reached. American Tower has been actively buying tower assets in areas outside of the United States for some time...owning prime EU towers would seem to be a perfect fit for AMT strategic plan.

[diku] 24/2/2021 19:19

Why not list 49% stake?...

[diku] 24/2/2021 17:37

So this what is happening...sell VOD to buy into the IPO?... A promised pay-out ratio worth 60% of free cash flow will add to the appeal for income investors, with a €280 million (£241.5 million) dividend scheduled for payment in July, and the company targeting mid-to-high single-digit growth in cash flows beyond that.

[monte1] 24/2/2021 16:45

Vodafone confirms massive IPO and big dividend by Graeme Evans from interactive investor | 24th February 2021 13:40 Share on: The float of its Vantage Towers business has been well flagged, but we now have more detail. One of the biggest IPOs of the year was unveiled today when Vodafone (LSE:VOD) confirmed plans for the Frankfurt flotation of its vast European mobile phone towers business. The listing of Vantage Towers will take place before the end of March and should prove attractive to investors wanting exposure to the roll-out of 5G services in Europe. A promised pay-out ratio worth 60% of free cash flow will add to the appeal for income investors, with a €280 million (£241.5 million) dividend scheduled for payment in July, and the company targeting mid-to-high single-digit growth in cash flows beyond that. For Vodafone investors, the significant proceeds from the “meaningful221; minority free float will help to pay down some of the FTSE 100 index company's debt, which stood at €44 billion (£38 billion) at the end of September. The trading of the Vantage stake should also enable City analysts to fine tune their valuations on Vodafone's infrastructure assets. Shares were today 2% lower at 127.18p, having fallen back in recent days after an encouraging third-quarter trading update at the start of February. The IPO pricing details are still to be confirmed, but speculation this week has suggested the Vantage business could be valued at about €15 billion (£13 billion). Dusseldorf-based Vantage boasts 82,000 sites across 10 countries and is the number one or two largest in nine of its ten markets. Vodafone said Vantage was seeing strong “commercial momentum”, with about 1,400 new tenancies expected in the nine months to next month. And driven by mobile data growth and the 5G roll out, Vantage is on track to build 550 new sites in the current financial year and has commitments for a further 7,100 sites by 2026. Vodafone said: “The European tower market is in the early stages of its evolution and Vantage Towers believes that its high quality infrastructure, which offers superior locations and nationwide coverage, is well-positioned to benefit from the market's growth.” It also noted that the commercialisation of tower infrastructure companies is still a developing trend in Europe, with substantial room for growth compared with other more mature towers markets such as in the United States. The customer base is underpinned by its anchor tenant relationship with Vodafone, which is Europe's largest mobile operator by subscriber numbers, as well as relationships with other leading mobile operators. Inflation-linked contracts also offer visible and resilient revenue and cash flows from its existing business with "built-in" growth. The European focus of Vantage means Vodafone has chosen Frankfurt over London for the flotation. Towers chief executive Vivek Badrinath said: "The IPO is an important milestone and sets the foundations for the next stage of our growth within the dynamic towers industry.”

[diku] 24/2/2021 16:39

This company is the for the benefit of the BOD only...easy come easy go...

[philanderer] 24/2/2021 15:39

Going right down the cr@pper since that 'double top' on the short term chart. Support at 120p hopefully :-S

[davebowler] 24/2/2021 15:23

htTPs://www.digitaltveurope.com/2021/02/17/vodafone-and-tivo-extend-licencing-deal/

[pensionbull] 24/2/2021 14:52

Selling prime assets to pay debt. Couldn’t the current business cash flow be used to pay down the debt. Shareholders have had a real tough ride here over the years.

[diku] 24/2/2021 14:02

VOD poor performance since Y2000 is dragging BT down with it....a lost cause of a company...shareholders don't stand a chance...

[philanderer] 24/2/2021 13:50

Vodafone did not mention any details about a valuation, but Bloomberg has reported that it could be around €15bn. Sharecast