Vodafone Group Plc
) 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
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
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
Further, the company has also joined with
China Mobile Ltd.
) 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
Vodafone currently has a Zacks Rank #5 (Strong Sell).
Better ranked stocks in this sector include
). While TeliaSonera sports a Zacks Rank #1 (Strong Buy), both
BlackBerry and KT Corp. hold a Zacks Rank #2 (Buy).
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VODAFONE GP PLC (VOD): Free Stock Analysis
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