vodafdone is to spend £7bn upgrading its networks, with an extra £300m committed to the UK, as it prepares for an end to the European economic crisis.
Hundreds of new masts and radios will be installed to boost coverage, with London benefiting from £150m of spend over the next two years, and a 30% increase in masts.
A further £150m will go to the rest of the UK, bringing to £1.2bn the sum Vodafone will spend on its British network over the next three years.
The money is earmarked to improve 3G coverage and roll out faster 4G technology, and to expand Vodafone's retail empire.
"Whilst trading conditions in Europe remain very tough at present," said the Vodafone chief executive, Vittorio Colao, "we are encouraged by the forecast return to economic growth over the next two years and the potential for a shift in regulatory focus to support greater industry investment and consolidation."
Vodafone on Tuesday added £1bn to the £6bn of cash earmarked for Project Spring, which will pay for faster and wider mobile internet coverage and expand the group's TV and broadband activities on the continent following the $130bn (£81bn) sale of its stake in Verizon Wireless.
The company is betting that a European turnaround will counter another half-year of rapidly falling revenues in its major markets.
Organic service revenue – which includes calls, texts and data charges but excludes handsets – was down nearly 5% in the six months to 30 September across the group, with northern and central Europe down 5% and southern Europe nearly 16%. Revenues in Asia and Africa rose nearly 6%.
UK service revenue decreased 4.4%, while in Italy the decline was nearly 17%.
As well as providing cash for networks, the Verizon sale allowed Vodafone to book nearly £17bn of deferred tax losses that it will use to reduce its tax payments over the long term.
source: www.theguardian.com
