http://www.proactiveinvestors.co.uk Proactiveinvestors RSS feed en Mon, 19 Feb 2018 16:02:37 +0000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[RNS press release - Director/PDMR Shareholding ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20180207145326_13525216/ Wed, 07 Feb 2018 14:53:26 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20180207145326_13525216/ <![CDATA[News - Vodafone upgraded to 'buy' by Numis as broker predicts earnings growth ]]> http://www.proactiveinvestors.co.uk/companies/news/191141/vodafone-upgraded-to-buy-by-numis-as-broker-predicts-earnings-growth-191141.html Vodafone PLC’s (LON:VOD) third quarter service revenue met market forecasts but the prospects for sustained and accelerated earnings growth are intact, Numis said in a note to investors.  

Numis raised its rating on the stock to ‘buy’ from ‘add’ and left its target price at 270p. Last week, the company reported a 1.1% rise in third quarter organic service revenue, compared to 1.3% growth the previous quarter, as it tackled new mobile roaming regulations in Europe and a shift towards SIM-only contracts. 

READ: Vodafone's quarterly revenue drops on impact of Dutch unit sale and forex Too soon to think Vodafone will spend more cash in India

The struggling India division continued to contend with price competition but Numis thinks it is too early to believe Vodafone will have to inject more cash into the business.

In March 2017, the company announced a deal to combine its Vodafone India subsidiary with Idea Cellular. Vodafone and Idea recently agreed on an extra cash injection of up to €1.8bn, raised €1bn from selling standalone towers and will raise €1bn from selling an 11% stake in Indus Towers.

Numis pleased Vodafone not exiting UK

Vodafone is also in early talks to buy some of Liberty Global's assets in the continental European countries where they both operate.

The news comes two years after discussions between the pair collapsed.

“Buying Liberty out of Germany would double Vodafone’s cable footprint to c.60% of the country,” Numis analyst John Karidis.

“Because of this, cable's long and enduring value, and the total worth of Germany's market, we doubt investors will begrudge VOD if it pays a full multiple (11-12x EBITDA).”

Numis added that it was glad Vodafone is not exiting the UK as this “could hurt its global Enterprise business”.

Shares in Vodafone fell 2.3% to 214.3p in morning trading. 

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Mon, 05 Feb 2018 10:18:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/191141/vodafone-upgraded-to-buy-by-numis-as-broker-predicts-earnings-growth-191141.html
<![CDATA[RNS press release - VODAFONE ANNOUNCEMENT REGARDING MEDIA SPECULATION ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20180202162001_13520512/ Fri, 02 Feb 2018 16:20:01 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20180202162001_13520512/ <![CDATA[RNS press release - Block listing Interim Review ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20180201103355_13518010/ Thu, 01 Feb 2018 10:33:55 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20180201103355_13518010/ <![CDATA[RNS press release - Total Voting Rights ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20180201103203_13518004/ Thu, 01 Feb 2018 10:32:03 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20180201103203_13518004/ <![CDATA[News - Vodafone's quarterly revenue drops on impact of Dutch unit sale and forex ]]> http://www.proactiveinvestors.co.uk/companies/news/190969/vodafone-s-quarterly-revenue-drops-on-impact-of-dutch-unit-sale-and-forex-190969.html Vodafone Group PLC (LON:VOD) posted a drop in third quarter revenue, reflecting the sale of its Dutch sUBSidiary and foreign exchange headwinds.

Revenue fell 3.6% to €11.8bn in the three months ended 31 December 2017, including a 3.8 percentage point impact from the sale of Vodafone Netherlands to Deutsche Telekom subsidiary T-Mobile Nederland and a 3.5ppts hit from foreign exchange rate movements. 

Shares fell 3.59% to 216.5p around noon.

READ: Vodafone earnings to benefit from growing top line and cost savings, says UBS

Vodafone completed the disposal in December 2016 as a concession to European Union regulators to gain approval for the merger of its Dutch operations with Liberty Global’s Dutch subsidiary Ziggo.

Service revenue increased 1.1% on an organic basis, easing back from the 1.3% growth reported in the second quarter.

Vodafone had a more promotional quarter in some European countries, particularly in Spain, as it tackled new mobile roaming regulations and a shift towards SIM-only contracts. 

As a result, organic service revenue growth in Europe moderated to 0.3% from 0.8% in the second quarter.

In the Africa, Middle East, Asian and Pacific region, organic service revenue growth accelerated to 6.8% from 6.2% the previous quarter, driven by an increase in customers and an improvement at its South African mobile business Vodacom.

Price war rages on in India

The struggling India division continued to contend with price competition with organic service revenue falling 23.1%.

In March 2017, the company announced a deal to combine its Vodafone India subsidiary with Idea Cellular, joining forces to tackle a price war in the world's second-largest mobile-phone market.

“While the competitive and regulatory environment in India remains intense, we continue to make good progress in securing the required approvals for the merger with Idea Cellular, and we have taken steps to strengthen the combined company's financial position,” said chief executive Vittorio Colao.

Vodafone tops 100mln 4G customer milestone

Data usage grew 61% during the third quarter as the number of 4G customers jumped 57% to a milestone of 105 million with smartphone usage continuing to grow rapidly.

"The modern world is hungry for mobile data, as more services ranging from music streaming to banking move over to smartphones," said Laith Khalaf, senior analyst at Hargreaves Lansdown.

"Vodafone stands in a position to capitalise on this trend and has seen a big jump in its 4G customer base, which now stands at over 105 million.

"However monetising the data needs of the smartphone generation is more tricky, which is why Vodafone is trying to tempt customers to upgrade through “more for more” propositions."

The company achieved 379,000 broadband net additions for its fixed lines.

The enterprise business grew service revenue by 0.4%, compared to 0.5% in the previous quarter, as emerging market growth and a strong performance in its fixed-line services offset the impact of tough regulation.

Full year guidance maintained

“Overall, this consistent performance underpins our confidence that we will meet our guidance for the full year,” said Colao.

The group expects full year organic adjusted underlying earnings growth of 10%, implying a range of €14.75bn to €14.95bn, and predicts free cash flow pre-spectrum will exceed €5bn.

The unchanged earnings guidance for the full year "should provide reassurance to the large number of people who own the shares purely for its generous dividend, currently yielding in the region of 5.7%", according to AJ Bell investment director, Russ Mould.

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Thu, 01 Feb 2018 07:44:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/190969/vodafone-s-quarterly-revenue-drops-on-impact-of-dutch-unit-sale-and-forex-190969.html
<![CDATA[RNS press release - Trading update for the quarter ended 31 Dec 2017 ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20180201070010_13517235/ Thu, 01 Feb 2018 07:00:10 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20180201070010_13517235/ <![CDATA[RNS press release - MICHEL DEMAR�‰ APPOINTED AS A NON-EXEC DIRECTOR ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20180124090001_13507601/ Wed, 24 Jan 2018 09:00:01 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20180124090001_13507601/ <![CDATA[RNS press release - VODAFONE GREECE AGREES TO ACQUIRE CYTA HELLAS ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20180123152002_13506675/ Tue, 23 Jan 2018 15:20:02 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20180123152002_13506675/ <![CDATA[News - Vodafone earnings to benefit from growing top line and cost savings, says UBS ]]> http://www.proactiveinvestors.co.uk/companies/news/189514/vodafone-earnings-to-benefit-from-growing-top-line-and-cost-savings-says-ubs-189514.html Vodafone Group PLC (LON:VOD) will deliver an underlying earnings increase of 6% per annum over coming years as it benefits from a growing top line and cost savings, UBS predicts.

UBS maintained its ‘buy’ rating the stock but raised its target price to 285p from 280p to reflect the recent strengthening of the South African Rand.

READ: Vodafone's dividend well covered, says Barclays as it upgrades stock to 'overweight'

Vodafone owns a majority stake in South Africa’s Vodacom.

“Despite the recent rally in the shares, we think there is more to go for and see upside from mobile data monetisation, cost savings and mergers & acquisitions,” the bank said.

UBS expects the third quarter trading update in February to reveal organic service revenue (OSR) rose 1.3%, in line with the level of growth reported in the second quarter.

Excluding the drag from low margin and volatile carrier services revenue, UBS estimates third quarter OSR of 1.8%, compared to 1.7% in the second quarter.

The third quarter should be helped by the fading effects of Germany's cut to mobile termination rates, UBS said. This will be offset by price rises in Italy where UBS expects OSR to decline.

READ: Vodafone ends plans to merge Malta unit with Melita

Growth in Spain should be healthy, UBS said, but will slow quarter-on-quarter due to increased promotional activity across the market. 

The UK should see underlying OSR growth but this is masked by the impact of handset financing, the bank added.

“We see Vodafone as cheap, offering a 7.6% EFCF (equity free cash flow) yield on a calendarised basis for 2018 and a 5.9% dividend yield ,” the bank said.

“Despite the recent rally,  the Vodafone share price is only at similar levels to September 2016 when Reliance Jio entered the Indian market.”

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Thu, 04 Jan 2018 09:50:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/189514/vodafone-earnings-to-benefit-from-growing-top-line-and-cost-savings-says-ubs-189514.html
<![CDATA[RNS press release - Vodafone India & Idea Merger Update ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20180104085143_13485092/ Thu, 04 Jan 2018 08:51:43 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20180104085143_13485092/ <![CDATA[RNS press release - Total Voting Rights ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20180102113616_13482273/ Tue, 02 Jan 2018 11:36:16 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20180102113616_13482273/ <![CDATA[RNS press release - Publication of a Prospectus ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171215152313_13467904/ Fri, 15 Dec 2017 15:23:13 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171215152313_13467904/ <![CDATA[News - Vodafone's dividend well covered, says Barclays as it upgrades stock to 'overweight' ]]> http://www.proactiveinvestors.co.uk/companies/news/188505/vodafone-s-dividend-well-covered-says-barclays-as-it-upgrades-stock-to-overweight--188505.html Vodafone Group PLC (LON:VOD) shares gained as Barclays Capital upgraded the stock, saying the dividend is well covered despite concerns about its sustainability.

Barclays said the telecoms company is its “top pick” of the sector as it raised its rating on the stock to ‘overweight’ from ‘underweight’ and lifted its target price to 280p from 230p.

READ: Vodafone shares jump as it lifts full year guidance after first half profits grow

“Vodafone offers a 2018 March 6% dividend yield, and yet many question its sustainability, not just its potential to grow,” the bank noted.

“People also question how Vodafone will be able to monetise data, and the extent to which convergence presents competitive/strategic risk; whether regulatory headwinds will ever end; when cost cutting will be net vs gross; when capital expenditure will stop increasing; and whether Vodafone will merge with Liberty Global.”

But Barclays sees this as a “rear view mirror” way of looking at Vodafone with such arguments “far less relevant” thanks to an underlying earnings (EBITDA) compound annual growth rate of 4-5% in the next three years and positive revenue momentum.

The bank said Vodafone’s dividend has not been covered by free cash flow over the past years but this has changed as organic service revenue and EBITDA are now “firmly positive, giving operating leverage benefits along with cost opportunities from digitalisation”.

“We believe the dividend is now well covered, even post spectrum,” it said.

READ: Vodafone enters into strategic alliance with Japan's Softbank

Barclays lifted its forecasts for EBIDTA in fiscal years 2019 and 2020, by 1.6% and 3% respectively due to greater cost discipline. It expects 1.7% organic service revenue growth in 2019 compared to 1.1% previously.

“Vodafone has demonstrated its ability to grow fixed line revenues and market share in all its key markets in recent periods through a combination of self-build and wholesale agreements.”

Shares edged up 0.75% to 229.55p in morning trading. 

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Fri, 08 Dec 2017 09:15:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/188505/vodafone-s-dividend-well-covered-says-barclays-as-it-upgrades-stock-to-overweight--188505.html
<![CDATA[News - Vodafone ends plans to merge Malta unit with Melita ]]> http://www.proactiveinvestors.co.uk/companies/news/188501/vodafone-ends-plans-to-merge-malta-unit-with-melita-188501.html Vodafone (LON:VOD) has pulled out of plans to merge its Malta business with Melita after failing to receive regulatory approval.  

The London-listed telecoms giant said the companies were unable to satisfy the Maltese Competition Authority’s requirements and has therefore decided to ditch the proposed deal.

READ: Vodafone enters into strategic alliance with Japan's Softbank

Vodafone and Melita owners, Apax Partners Midmarket SAS and Fortino Capital, announced the proposed merger in May. 

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Fri, 08 Dec 2017 08:08:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/188501/vodafone-ends-plans-to-merge-malta-unit-with-melita-188501.html
<![CDATA[RNS press release - TERMINATION OF THE PROPOSED MERGER IN MALTA ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171208070004_13458426/ Fri, 08 Dec 2017 07:00:04 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171208070004_13458426/ <![CDATA[News - Vodafone enters into strategic alliance with Japan's Softbank ]]> http://www.proactiveinvestors.co.uk/companies/news/188241/vodafone-enters-into-strategic-alliance-with-japan-s-softbank-188241.html Vodafone PLC (LON:VOD) has entered into a strategic alliance with Japanese telecoms firm Softbank Corp. to enhance mobile services to businesses in Japan.

The two companies will combine forces to expand commercial and operational support services for Vodafone's enterprise customers operating in Japan.

READ: Vodafone shares jump as it lifts full year guidance after first half profits grow

"This strategic alliance brings together two of the world's leading communications companies to provide enterprise customers with the most innovative and responsive service and support in Japan,” said Diego Massidda, the chief executive of Vodafone Partner Markets.

READ: Vodafone sells mobile phone towers in India to American Tower

The alliance comes more than 11 years after Softbank took over Vodafone's Japanese mobile unit for about US$15bn after the London-listed group struggled with the loss of customers in the nation.

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Tue, 05 Dec 2017 07:15:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/188241/vodafone-enters-into-strategic-alliance-with-japan-s-softbank-188241.html
<![CDATA[RNS press release - Strategic alliance with Softbank for enterprise ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171205070012_13453722/ Tue, 05 Dec 2017 07:00:12 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171205070012_13453722/ <![CDATA[RNS press release - Total Voting Rights ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171201102553_13451024/ Fri, 01 Dec 2017 10:25:53 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171201102553_13451024/ <![CDATA[RNS press release - Publication of Final Terms ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171117123918_13435896/ Fri, 17 Nov 2017 12:39:18 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171117123918_13435896/ <![CDATA[RNS press release - Conclusion of share buy-back programme ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171116125757_13434416/ Thu, 16 Nov 2017 12:57:57 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171116125757_13434416/ <![CDATA[RNS press release - Transaction in Own Shares ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171116070004_13433345/ Thu, 16 Nov 2017 07:00:04 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171116070004_13433345/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171115103121_13432387/ Wed, 15 Nov 2017 10:31:21 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171115103121_13432387/ <![CDATA[RNS press release - Transaction in Own Shares ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171115070003_13431683/ Wed, 15 Nov 2017 07:00:03 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171115070003_13431683/ <![CDATA[RNS press release - Publication of Suppl.Prospcts ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171114143805_13431340/ Tue, 14 Nov 2017 14:38:05 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171114143805_13431340/ <![CDATA[News - Vodafone shares jump as it lifts full year guidance after first half profits grow ]]> http://www.proactiveinvestors.co.uk/companies/news/187216/vodafone-shares-jump-as-it-lifts-full-year-guidance-after-first-half-profits-grow-187216.html Vodafone PLC (LON:VOD) rallied as it raised its full year earnings guidance after reporting an increase in first half profit and organic revenue.

The telecoms giant now expects organic adjusted underlying earnings (EBITDA) to rise 10% in the year, implying a range of €14.75 - €14.95bn, compared to a previous forecast of 4-8% growth. 

READ: Vodafone sells mobile phone towers in India to American Tower

The new estimates were ahead of the consensus forecast for 7% growth, sending shares up 5.12% to 226.95p in afternoon trading. 

The company said the improved outlook reflected stronger-than-expected underlying revenue growth in Europe and a later-than-expected commercial launch of a new entrant in Italy.

First half earnings rise

In the six months to 30 September, Vodafone reported a 13% increase in organic adjusted EBITDA to €7.4bn as the adjusted EBTIDA margin improved by 2.5 percentage points to 32%.

Excluding the impact of net roaming declines in Europe and the benefits in the UK from the introduction of handset financing and regulatory settlements, organic adjusted EBITDA increased 9.3%.

Organic service revenue rose 1.7% in the first half, driven by mobile data and broadband.

The second quarter saw a slowdown in organic service revenue growth to 1.3% from 2.2% in the first quarter, reflecting tough comparatives and a lower contribution from carrier services in the Africa, Middle East and Asia Pacific region.

Total revenue hit by deconsolidation of Dutch arm

Total revenue for the first half fell 4.1% to €23.1bn, with the group blaming the deconsolidation of its Vodafone Netherlands and foreign exchange headwinds.

The telecoms giant said its joint venture between Vodafone Netherlands and Ziggo, in which it owns a 50% stake, was hit by intense price competition in its mobile operations.

READ: Vodafone takes aim at BT through lightning fast telecoms network deal with CityFibre

The India division was also hurt by price competition, resulting in continued losses and lower revenues, but this was excluded from the group's first half figures.

Vodafone announced in March that it was merging its loss-making Indian mobile phone business with Idea Cellular after failing to list the unit.

On Monday, the company said it has agreed to sell ATC Telecom Infrastructure, a joint venture between Vodafone India and Idea that includes a network of 20,000 mobile phone towers across the country, to American Tower Corp. for 78.5bn rupees.

“In India competition remains intense,” said Vodafone chief executive Vittorio Colao.

“There are however signs of positive developments in the Indian market, with consolidation of smaller operators and recent price increases from the new entrant. We are making good progress in securing regulatory approvals for our merger with Idea Cellular and in monetising our tower assets.”

Expansion continues

Colao added that in the second half of the year the company will continue to implement strategic initiatives, including fibre infrastructure expansion in Germany, Portugal and the UK along with its entry into the consumer internet of things (IoT) market.

Vodafone in October announced that it launched "V by Vodafone" network, allowing consumers to connect home and leisure electronics products to its dedicated global IoT network.

Last week, the company unveiled a partnership with CityFibre to install one million new ultrafast connections in 12 cities by 2021 with a possible extension to cover five million homes by 2025. The project could prove a challenge for Openreach, which owns most of the UK's fibre network, and cable operator Virgin Media.

Vodafone hikes dividend, UBS repeats 'buy' rating

Vodafone raised its interim dividend by 2.1% to 4.84 euro cents as the group achieved free cash flow of €1.3bn, compared to a decline of €0.1bn the same period a year ago.

Net debt rose to €32.1bn at the end of September from €31.2bn at the end of March, as free cash flow and net proceeds from the sale of shares in South African mobile company Vodacom were offset by the payment of last year's final dividend of €2.6bn.

UBS reiterated a 'buy' rating and target price of 270p on the stock, saying it believes Vodafone is "too cheap", offering an 8% calendarised free cash flow yield for 2018 and a 6% dividend yield.

"We think consensus organic service revenue trends for Q3 will be similar to Q2 but should improve in Q4 as regulatory drag drops away.

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Tue, 14 Nov 2017 08:33:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/187216/vodafone-shares-jump-as-it-lifts-full-year-guidance-after-first-half-profits-grow-187216.html
<![CDATA[RNS press release - Half-year Report ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171114070005_13430173/ Tue, 14 Nov 2017 07:00:05 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171114070005_13430173/ <![CDATA[RNS press release - Transaction in Own Shares ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171114070003_13430121/ Tue, 14 Nov 2017 07:00:03 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171114070003_13430121/ <![CDATA[RNS press release - Transaction in Own Shares ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171113070003_13428508/ Mon, 13 Nov 2017 07:00:03 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171113070003_13428508/ <![CDATA[RNS press release - Vodafone India & Idea - Sale of Standalone Towers ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171113070002_13428467/ Mon, 13 Nov 2017 07:00:02 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171113070002_13428467/ <![CDATA[RNS press release - Transaction in Own Shares ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171110070002_13426976/ Fri, 10 Nov 2017 07:00:02 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171110070002_13426976/ <![CDATA[News - Vodafone takes aim at BT through lightning fast telecoms network deal with CityFibre ]]> http://www.proactiveinvestors.co.uk/companies/news/186998/vodafone-takes-aim-at-bt-through-lightning-fast-telecoms-network-deal-with-cityfibre-186998.html Telecoms giant Vodafone PLC (LON:VOD) and AIM-listed CityFibre (LON:CHFL) are joining forces to build a new ultra-fast broadband network for 5mln homes and businesses in the UK.

The fibre–optic FTTP (fibre-to-the- premises) network will be capable of carrying one gigabit (I,000 mbps) of data to the door of the user.

CityFibre will build, own and operate the network with Vodafone having exclusive rights to market ultrafast consumer broadband services for a set period.

Moving towards 'full fibre'

In the initial phase, costing £500mln, one million homes in twelve cities currently supplied by CityFibre will be upgraded. The agreement has an option to expand this to five million homes by 2025.

Broadband speeds are a huge source of frustration for UK consumers, with BT and telecoms regulator Ofcom at loggerheads over the speed that the traditional copper network is being upgraded.

Vodafone said the partnership with CityFibre represented “one of the most significant developments in UK telecommunications since the launch of ADSL broadband around 17 years ago”.

The new network would deliver 50% of the UK government's target of 'full fibre' to 10mln homes and businesses as well as providing high-capacity backhaul connections required for the next generation of 5G mobile services.

Significant development?

In a dig at BT, Vodafone added the new network would provide a superior product at a lower cost and better service than the legacy copper telephone line broadband network.

Greg Mesch, CityFibre’s chief executive,  said the partnership would unlock the UK's full fibre future and establish an unassailable wholesale infrastructure position across 20% of the UK broadband market. 

Nick Jeffery, Vodafone UK chief executive added: “The UK has fallen far behind the rest of the world, trapped by the limited choice available on legacy networks. “

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Thu, 09 Nov 2017 08:40:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/186998/vodafone-takes-aim-at-bt-through-lightning-fast-telecoms-network-deal-with-cityfibre-186998.html
<![CDATA[RNS press release - VODAFONE & CITYFIBRE STRATEGIC PARTNERSHIP ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171109070011_13425558/ Thu, 09 Nov 2017 07:00:11 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171109070011_13425558/ <![CDATA[RNS press release - Transaction in Own Shares ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171109070004_13425418/ Thu, 09 Nov 2017 07:00:04 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171109070004_13425418/ <![CDATA[RNS press release - Transaction in Own Shares ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171108070004_13423852/ Wed, 08 Nov 2017 07:00:04 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171108070004_13423852/ <![CDATA[RNS press release - "V by Vodafone" brings IoT expertise to consumers ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171107070006_13422385/ Tue, 07 Nov 2017 07:00:06 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171107070006_13422385/ <![CDATA[RNS press release - Transaction in Own Shares ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171107070004_13422313/ Tue, 07 Nov 2017 07:00:04 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171107070004_13422313/ <![CDATA[RNS press release - Transaction in Own Shares ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171106070003_13420735/ Mon, 06 Nov 2017 07:00:03 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171106070003_13420735/ <![CDATA[RNS press release - Transaction in Own Shares ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171103070101_13419239/ Fri, 03 Nov 2017 07:01:01 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171103070101_13419239/ <![CDATA[RNS press release - Transaction in Own Shares ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171103070003_13419162/ Fri, 03 Nov 2017 07:00:03 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171103070003_13419162/ <![CDATA[RNS press release - Transaction in Own Shares ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171102070004_13417535/ Thu, 02 Nov 2017 07:00:04 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171102070004_13417535/ <![CDATA[RNS press release - Total Voting Rights ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171101111618_13416593/ Wed, 01 Nov 2017 11:16:18 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171101111618_13416593/ <![CDATA[RNS press release - Transaction in Own Shares ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171101070004_13415702/ Wed, 01 Nov 2017 07:00:04 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171101070004_13415702/ <![CDATA[RNS press release - Transaction in Own Shares ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171031070003_13413947/ Tue, 31 Oct 2017 07:00:03 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171031070003_13413947/ <![CDATA[RNS press release - Transaction in Own Shares ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171030070003_13412402/ Mon, 30 Oct 2017 07:00:03 +0000 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171030070003_13412402/ <![CDATA[RNS press release - Transaction in Own Shares ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171027070002_13410807/ Fri, 27 Oct 2017 07:00:02 +0100 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171027070002_13410807/ <![CDATA[RNS press release - Transaction in Own Shares ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171026070003_13409355/ Thu, 26 Oct 2017 07:00:03 +0100 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171026070003_13409355/ <![CDATA[RNS press release - Transaction in Own Shares ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171025070003_13407806/ Wed, 25 Oct 2017 07:00:03 +0100 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171025070003_13407806/ <![CDATA[RNS press release - Transaction in Own Shares ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171024070003_13406264/ Tue, 24 Oct 2017 07:00:03 +0100 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171024070003_13406264/ <![CDATA[RNS press release - Transaction in Own Shares ]]> http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171023070003_13404689/ Mon, 23 Oct 2017 07:00:03 +0100 http://www.proactiveinvestors.co.uk/companies/rns/3322/LSE20171023070003_13404689/