LONDON (Thomson Financial) - The telecoms regulator on Thursday fined the Greek unit of UK mobile giant Vodafone 19.1 mln eur for violating network regulations in a wire-tapping scandal that rocked the country last year.

The fine is the second handed to Vodafone Hellas over the case after a 76 mln eur penalty levelled by Greece's communication privacy watchdog last December.

Some 100 Vodafone cellphones in February 2006 were found to have been compromised by an illicit network that tapped sets used by Greek Premier Costas Karamanlis, his wife and several ministers from June 2004 to March 2005.

The tapping used software slipped into Vodafone's network by unknown perpetrators to illegally activate an Ericsson-made module permitting call interception.

On Thursday, the national telecommunications regulator EETT accused Vodafone of breaching regulations on the protection of telecommunications privacy, network maintenance and quality, and consumer protection.

The company rejected last December's fine as 'illegal, unfair and baseless.'

A Greek parliament committee collecting evidence on the case last November noted the involvement of three employees of telecoms giants Ericsson Hellas and Vodafone Greece, identified only by their initials.

'The whole system could not operate without Ericsson know-how and without access from within (Vodafone),' the report said.

The Greek branch of Swedish telecom equipment giant Ericsson has also been fined 7.36 mln eur over the case.

The parliamentary committee did not rule out the involvement of other people operating outside Greece.

The Greek justice department has opened an investigation into the case but nobody has yet been charged.

Days before the affair came to light, a senior Vodafone expert was found hanged inside his home.

The death of Costas Tsalikidis, manager of Vodafone Greece's network planning section, was linked to the case and his family suspects he was murdered.

Ofcom announces winners of the 4G mobile auction

· Five winning bidders to deliver future mobile competition in the UK
· 4G services from a range of operators expected within six months
· Research measuring 4G speeds to be conducted at the end of 2013

Ofcom has today announced the winners of the 4G mobile spectrum auction.

After more than 50 rounds of bidding, Everything Everywhere Ltd, Hutchison 3G UK Ltd, Niche Spectrum Ventures Ltd (a subsidiary of BT Group plc), Telefónica UK Ltd and Vodafone Ltd have all won spectrum. This is suitable for rolling out new superfast mobile broadband services to consumers and to small and large businesses across the UK1.

The auction has achieved Ofcom's purpose of promoting strong competition in the 4G mobile market. This is expected to lead to faster mobile broadband speeds, lower prices, greater innovation, new investment and better coverage. Almost the whole UK population will be able to receive 4G mobile services by the end of 2017 at the latest.

A total of 250 MHz of spectrum was auctioned in two separate bands - 800 MHz and 2.6 GHz. This is equivalent to two-thirds of the radio frequencies currently used by wireless devices such as tablets, smartphones and laptops.

The lower-frequency 800 MHz band is part of the 'digital dividend' freed up when analogue terrestrial TV was switched off, and is ideal for widespread mobile coverage. The higher-frequency 2.6 GHz band is ideal for delivering the capacity needed for faster speeds. The availability of the two will allow 4G networks to achieve widespread coverage as well as offering capacity to cope with significant demand in urban centres.

Ed Richards, Ofcom Chief Executive, said: "This is a positive outcome for competition in the UK, which will lead to faster and more widespread mobile broadband, and substantial benefits for consumers and businesses across the country. We are confident that the UK will be among the most competitive markets in the world for 4G services.

"4G coverage will extend far beyond that of existing 3G services, covering 98% of the UK population indoors - and even more when outdoors - which is good news for parts of the country currently underserved by mobile broadband.

"We also want consumers to be well informed about 4G, so we will be conducting research at the end of this year to show who is deploying services, in which areas and at what speeds. This will help consumers and businesses to choose their most suitable provider."


Widespread 4G coverage
Ofcom has attached a coverage obligation to one of the 800 MHz lots of spectrum. The winner of this lot is Telefónica UK Ltd. This operator is obliged to provide a mobile broadband service for indoor reception to at least 98% of the UK population (expected to cover at least 99% when outdoors) and at least 95% of the population of each of the UK nations - England, Northern Ireland, Scotland and Wales - by the end of 2017 at the latest.


Results
A breakdown of what was won, who won it and the base prices payable is detailed below:

VODAFONE UK SECURES SPECTRUM

Vodafone UK confirms, following the announcement by UK communications regulator Ofcom, that in the principal round of the spectrum auction it has acquired spectrum of 2 x 10MHz in the 800MHz band and 2 x 20MHz in the 2.6GHz band plus an additional 25 MHz of unpaired spectrum in the 2.6 GHz band. The spectrum licences are all indefinite in length and have an initial term of 20 years. The total amount payable is £790m.

The spectrum award will support Vodafone UK's plans to develop the next generation of mobile internet services, known as 4G, using Long Term Evolution (LTE) technology.

Vodafone UK chief executive Guy Laurence said: "We've secured the low frequency mobile phone spectrum that will support the launch of our ultra-fast 4G service later this year. It will enable us to deliver services where people really want it, especially indoors. This is great news for our customers. The next generation of mobile internet services will bring real benefits to both consumers and businesses."

Publication of Prospectus

The following supplementary prospectus has been approved by the UK Listing Authority and is available for viewing:

Supplementary prospectus dated 22 February 2013 (the "Supplementary Prospectus") prepared in connection with the €30,000,000,000 Euro Medium Term Note Programme of Vodafone Group Plc (the "Issuer").

To view the Supplementary Prospectus and the documents that are incorporated into it by reference, please paste the following URL into the address bar of your browser.

http://www.rns-pdf.londonstockexchange.com/rns/5010Y_-2013-2-22.pdf

Vodafone Group PLC Espirito Santo Execution Noble Buy 169.18 200.00 200.00 Reiterates

Vodafone Group PLC Oriel Securities Buy 169.18 225.00 225.00 Reiterates

Vodafone Group PLC Deutsche Bank Hold 169.18 173.00 173.00 Reiterates

Verizon, Vodafone mull Verizon Wireless options - report

Tue Mar 5, 2013 9:23pm GMT

(Reuters) - Verizon Communications Inc (VZ.N) has weighed several options involving its relationship with Vodafone Group Plc (VOD.L) and its joint ownership of Verizon Wireless ranging from ending its wireless venture with the European company to a full merger with Vodafone, Bloomberg reported.

The U.S. and UK mobile-phone operators discussed a full combination as recently as December, according to Bloomberg, which cited people familiar with the situation.

The talks stalled over issues of leadership and location of a new company, making a buyout or partial sale of Vodafone's stake in Verizon Wireless more likely, the sources said.

Wondered what the excitement was.

THANKYOU SKINNY

VODAFONE TO MOBILISE NEW ZEALAND POLICE

VODAFONE TO MOBILISE NEW ZEALAND POLICE WITH SMART TECHNOLOGY

· 30 minute productivity gain per shift with smart devices
· Equates to 520,000 hours each year - the equivalent of 345 frontline officers

Vodafone has announced that New Zealand Police has chosen Vodafone New Zealand as its partner for mobile communications in a 10 year fully outsourced deal.

Trying to ignore 'that gap', this looks pretty strong atm.

VODAFONE AND ORANGE TO CO-INVEST IN FIBRE TO THE HOME IN SPAIN

Vodafone Spain announces today that it has signed an agreement with Orange to co-invest in fibre to the home deployment in Spain, with the intention to reach 6 million households and workplaces across 50 major cities by September 2017.

Under the terms of the agreement, Vodafone and Orange will each deploy street-level fibre ("horizontal" infrastructure) in complementary geographies. The fibre will be owned independently but will share the same technical specifications to ensure compatibility as a single network, and each partner will have guaranteed access to the whole infrastructure.

The companies will also each deploy their own in-building fibre ("vertical" infrastructure), guaranteeing access to each other, and will together request access to any third party vertical infrastructure.

Vodafone and Orange will provide Spanish consumers with a world-class fibre to the home network, commercially available from January 2014, reaching:

· 800,000 households and workplaces by March 2014;
· 3 million households and workplaces by September 2015; and
· 6 million households and workplaces by 2017 - a residential penetration level of around 40%.

The combined capital expenditure required to reach 6 million households and workplaces is expected to reach €1 billion. Vodafone and Orange believe the agreement will increase fibre deployment efficiencies and maximise returns on investment for both operators. The agreement is also open to third parties willing to co-invest.

The companies will work with regulators to ensure:

· Sharing of vertical infrastructure at prices based on actual cost;
· Effective access to Telefónica's ducts to facilitate rapid mass deployment of horizontal infrastructure; and
· Measures to obtain necessary administrative permits in a timely manner.

Vodafone Chief Executive for the Southern Europe region, Paolo Bertoluzzo, said: "I am delighted to announce our plans to work with Orange to deploy fibre networks across Spain. This agreement demonstrates Vodafone's commitment to provide high-speed unified communications services to our customers coupled with our willingness to invest when there are positive returns."

- ends -

Vodafone to end McLaren sponsorship this year

MELBOURNE | Thu Mar 14, 2013 11:13am IST

(Reuters) - British mobile operator Vodafone will end its seven-year title sponsorship of Formula One team McLaren at the end of the 2013 season, the team confirmed on Thursday.

The Financial Times had earlier cited a Vodafone spokesman as saying the sponsorship, which started in 2007 and was worth up to $75 million a year, was being ended following a review of marketing strategy.

Liberum Capital Buy 182.23 182.25 - 210.00 Reiterates

Citigroup Buy 183.20 183.25 180.00 215.00 Upgrades

Citigroup lifts Vodafone to buy from neutral, target price 215p from 180p.

Questor share tip: Hold the line for news on Vodafone's US stake
Speculation about Vodafone's Verizon Wireless stake is mounting. Questor says hold.


There's a general feeling that the debate about the future of Vodafone’s US mobile venture is now coming to a head. A sale could provide Vodafone with almost £90bn in cash but what would it do with the proceeds?

Vodafone owns 45pc of Verizon Wireless, the US’s largest mobile operator, with Verizon Communications holding the 55pc majority stake. Vodafone’s chief executive, Vittorio Colao, has been exiting stakes in businesses where he does not have control, such as SFR in France, so speculation over a deal has been around for some time.

There are, of course a number of options. These include a full merger of the two partners or a part sale of the stake to Verizon. Alternatively, Vodafone could exit the US altogether or maintain the status quo and benefit from the cashflows.

There are good reasons for arguing that a sale would be in the interest of Vodafone shareholders. The FTSE 100 telecom giant has a market capitalisation of £94.4bn, with a figure of approaching £90bn being touted as the value of a full sale of its US stake. This implies that the value of a broken up Vodafone would be far greater than the current value the market puts on the company as a whole. A break up could be a positive catalyst for the value to be unlocked.

One major issue for Vodafone would be tax. The implications are not exactly clear, with Société Générale arguing that the transaction would be tax free for Verizon, with Vodafone liable to pay capital gains tax on the cash received. The bank estimated that the tax would be in the £21.3bn to £30bn range for a full sale. The French broker also argues that Vodafone would be able to defer capital gains tax on any Verizon equity received as part of a deal. There would be a tax liability when the shares are eventually sold.

However, Citigroup reckons that Vodafone would not be liable to pay a significant amount of the capital gains tax if the transaction were conducted offshore.

Vodafone’s core European markets are challenged by the economic situation, something which caused the shares to plunge at the end of last year. This issue makes a full merger less likely. Why would US investors in a booming business want to take on these troubled European operations?

So, the only possibilities apart from the status quo are the sale of part of the venture or a full exit.

The main issue for Questor is the fact that the dividend streams from Verizon Wireless are likely to become more frequent, providing a degree of security to Vodafone’s own dividend payments. Investors have already seen what can happen when a company shrinks at Aviva, which sold its US business, a move which crimped its cashflows and eventually led to its dividend being slashed.

So, what would Vodafone do with the cash if it sold the stake? Investors would want a chunk but where would the cash be deployed to find growth? Management would struggle to find an investment such as Verizon Wireless that would deliver significant cashflows over coming years at such a low risk to the business. So, although there is much speculation, a deal is not certain. However, the debate has served to highlight the value of the group’s US operations and bring the shares back from their slide last year.

Trading on a current year earnings multiple of 12.6 falling to 11.6, Questor rates the shares a hold.

Citigroup Buy 187.40 187.20 215.00 215.00 Reiterates

Morgan Stanley Overweight 187.40 187.20 205.00 205.00 Retains

Espirito Santo Execution Noble Buy 193.10 186.60 200.00 200.00 Reiterates

Deutsche Bank Hold 193.10 186.60 173.00 173.00 Reiterates

According to usually reliable people, Verizon Communications and AT&T have been working on putting together a breakup bid for Vodafone. They say the offer under discussion, should it happen, would be pitched at around a 40 per cent premium to Vodafone’s current price, or about 260p a share.

Such a bid would give Vodafone an enterprise value of around $245bn. That would dwarf the previous M&A record holder, AOL’s $182bn takeover of Time Warner in 2000, and would nearly double the total value of global M&A for the year so far. It would, in every sense, be a rather big deal.

http://ftalphaville.ft.com/2013/04/02/1443352/vodafone-verizon-a-245bn-solution/

NICE

Verizon Communications

Vodafone Group Plc ("Vodafone")

Verizon Communications Inc. ("Verizon") notes the recent press speculation regarding a potential merger with or purchase by Verizon of Vodafone. As Verizon has said many times, it would be a willing purchaser of the 45% stake that Vodafone holds in Verizon Wireless. It does not, however, currently have any intention to merge with or make an offer for Vodafone, whether alone or in conjunction with others.