Vodafone Extends 4G Roaming for UK Users - Analyst Blog


Shutterstock photo

Vodafone Group Plc ( VOD ) is now reportedly offering 4G roaming services to its British customers traveling to Spain, Italy and Portugal. The company began 4G roaming services last year in Greece for its customers in UK and since then, has been fast expanding this service to various other European countries. 

4G is rapidly gaining momentum globally owing to demand for high-speed wireless data services and mobile video. The unprecedented progress of smartphones has only helped fuel the demand further. We believe the rapid growth of 4G perked up with added benefits such as 4G roaming services, will foster the company's financial performance given the higher average revenue per unit (ARPU) generating capacity of the wireless technology.

Further, Vodafone remains focused on increasing its smartphone penetration, which represents nearly 80% of all sales, and comprises over 62% of its customer base. The company is also gaining from its new pricing plan - Vodafone Red, which incorporates unlimited voice and SMS, increased roaming services, shared plans, early upgrades, cloud and other value added services.

The company expanded Vodafone Red in 14 European markets with 9.8 million customers, representing its largest multinational marketing campaign - Vodafone 2015. The company aims to reach 11-12 million Vodafone Red customers with attempts to capture opportunities in the emerging markets.

We believe the prospect of mobile data is better in emerging markets where Vodafone is consolidating its presence through partner-market agreements. The alliance between Vodafone and Polkomtel is expected to enhance the former's presence in Eastern Europe, without any major investments as the company will be offering its services therein via the local partner's network.

Further, the company has also joined with China Mobile Ltd. ( CHL ) to form a consortium to bid for a mobile license in Myanmar. The telecom giants are aiming to secure one of the two telecom licenses in a bid to roll out a nationwide telecom network in Myanmar (Burma).

Vodafone currently has a Zacks Rank #5 (Strong Sell).

Other Stocks

Better ranked stocks in this sector include TeliaSonera Aktiebolag   ( TLSNY ), BlackBerry Ltd ( BBRY ) and KT Corp. ( KT ). While TeliaSonera sports a Zacks Rank #1 (Strong Buy), both BlackBerry and KT Corp. hold a Zacks Rank #2 (Buy).

BLACKBERRY LTD (BBRY): Free Stock Analysis Report

CHINA MOBLE-ADR (CHL): Free Stock Analysis Report

KT CORP (KT): Free Stock Analysis Report


VODAFONE GP PLC (VOD): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
More Headlines for: BBRY , CHL , KT , TLSNY , VOD

More from Zacks.com




Equity Research
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com