Vodafone: Betting on an Economic Rebound in Europe

Outside the Verizon Wireless investment, Vodafone is a large wireless provider in the major European countries of Germany, the Netherlands, U.K., Italy, and Spain along with select investments in Africa and Asia. The company has roughly 500 million wireless subscribers around the world making it one of the largest mobile carriers. With the Verizon Wireless deal heading toward completion, the market is starting to wonder if Vodafone can justify its current price.

A rebound in Europe would help justify a long-term investment into Vodafone especially considering eMarketer lists that the U.S. market has already reached a 75% market penetration rate for high-speed data customers. Vodafone lists the primary European markets of Germany, U.K., and the Netherlands only reaching a smartphone penetration level of 39%. The rest of the markets are significantly below this level. Vodafone is clearly making a move out of the mature U.S. wireless market into the still developing European markets. A economic rebound in Europe would help Vodafone immensely.

Reviewing the deal
The deal involves Verizon paying Vodafone total consideration of roughly $130 billion. The primary details include the following:

• $58.9 billion in cash
• $60.2 billion in Verizon shares
• $5.0 billion in the form of Verizon notes
• $3.5 billion in the form of Verizon's 23% minority interest in Vodafone Italy
• $2.5 billion in the assumption by Verizon of Vodafone net liabilities relating to Verizon Wireless

source: www.fool.com

NCC to auction spectrum

the Nigerian Communications Commission (NCC) on behalf of the Federal Government of Nigeria, will auction one frequency license in the 2.3 GHz Band to qualified applicants for the provision of wholesales broadband service in Nigeria. The auction is expected to take place toward the end of January 2014.

In a statement, NCC said the Commission had, as a complement to its open Access Broadband Strategy, decided to assign the one slot of 30MHz nationally available in the 2.3 GHz Band for the delivery of broadband wireless access service at the wholesale level, to provide ISPs and other Retail Telecoms Service Providers with the requisite bandwidth to service their subscribers. This wholesale broadband provider will have the required spectrum to expand wireless broadband access across the country to ISPs and other Retail Telecom Service Providers for the provision of retail high speed internet access services.

NCC invited expressions of interest from applicants. Information Memorandum detailing the qualification criteria, auction processes, requisite forms and other key information will be made available at the Commission’s Head Office and its official website (www.ncc.gov.ng) to guide all interested stakeholders.

source: www.biztechafrica.com

mobile broadband

It is marketing term for wireless internet access through a portable modem, mobile phone , USB wireless modem , tablet or other mobile devices.

The first wireless internet access became available in 1991 as a part of the 2G of mobile phone technology. Its higher speed became available in 2001 and as a part of 3G and 4G in 2006.

It is the marketing term for wireless internet access delivered through mobile phone towers to computers , mobile phones and other devices using portable modems. The bit rates available with mobile broadband devices support voice and video as well as other data access. The devices that provide mobile broadband to mobile computers include:

1.      PC cards known as PC data cards and express cards.

2.      USB and mobile broadband also known as connect cards

3.      Portable devices with built in support for mobile broadband such as laptop computers, netbook computers etc.