VODAFONE FORCED TO WRITE DOWN INDIAN BUSINESS
Vodafone’s move to write off GBP2.3 billion (USD3.33 billion) of its investment in India overshadows a strong fiscal fourth quarter, writes FT. Despite an expanding market share and more than 100 million customers in the country, competition proved fiercer than it expected in 2007 when Vodafone bought a majority stake in mobile operator Hutchison Essar for GBP5.6 billion. The cost of investing in new wireless spectrum amid regulatory uncertainty is also higher. Now there is doubt about Vodafone's promise to raise its dividend 7 percent per year over the next three years. The company is promising to pay out GBP 4.4 billion to shareholders in the year to March 2011 while generating free cash flow of around GBP6.5 billion, before license and spectrum acquisition costs.
Vodafone’s move to write off GBP2.3 billion (USD3.33 billion) of its investment in India overshadows a strong fiscal fourth quarter, writes FT. Despite an expanding market share and more than 100 million customers in the country, competition proved fiercer than it expected in 2007 when Vodafone bought a majority stake in mobile operator Hutchison Essar for GBP5.6 billion. The cost of investing in new wireless spectrum amid regulatory uncertainty is also higher. Now there is doubt about Vodafone's promise to raise its dividend 7 percent per year over the next three years. The company is promising to pay out GBP 4.4 billion to shareholders in the year to March 2011 while generating free cash flow of around GBP6.5 billion, before license and spectrum acquisition costs.
3G AUCTIONS IS WINDFALL FOR INDIA
India’s 3G bandwidth auction is over, after 34 days; the government has managed to rake in USD14.6 billion in an intense bidding war which was mainly dominated by Bharti Airtel, Reliance and Vodafone.
India’s 3G bandwidth auction is over, after 34 days; the government has managed to rake in USD14.6 billion in an intense bidding war which was mainly dominated by Bharti Airtel, Reliance and Vodafone.
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