Dallas, Texas 02/27/2014 (FINANCIALSTRENDS) – Vodafone Group Plc (ADR)(NASDAQ:VOD) has opted to step away from the less profitable US carriers markets and strike out anew in emerging markets. In an announcement the European telecom service provider will sell its 45% stake in Verizon.
In the meanwhile, Vodafone Group Plc (ADR)(NASDAQ:VOD) will now mark time with another European provider- Erickson to bring cellular connectivity to enterprises. The platform which this service will render services is the radio Dot System where the current 3G and LTE will see further expansion.
Vodafone Group Plc (ADR)(NASDAQ:VOD) has also been working on establishing its footprint in emerging markets such as Africa and India.
Vodafone Group Plc (ADR)(NASDAQ:VOD) especially on its Indian sojourn appears to be consolidating its presence through infrastructure expansion. Along with local partner TATA, VOD hopes to expand its 3G and 4G connectivity and move to 900MHz band width.
It is also in the midst of a tax dispute with the Indian government. Separately, VOD hopes to soon continue in the Indian markets as a solo player and expand beyond the three metro it is currently it is operating.
Vodafone Group Plc (ADR)(NASDAQ:VOD) has been in serious consideration of acquiring another service provider in Europe. This time it is the Spanish Entertainment and broadband service provider- ONO. The company which already has an extensive footprint in the region should help Vodafone to penetrate parts of Europe where it has not ventured before.
Unconfirmed reports also indicate that VOD has been sounding out telecom players across Europe. Current policy which the company attempts to duplicate across the countries it is attempting to service is – acquiring as well as investing in businesses with high returns.
Vodafone Group Plc (ADR)(NASDAQ:VOD) has thus far been unable to establish itself in the crowded US telecom space as well as across Europe. However, in emerging markets where spectrums and price bandwidth are more suitable to VOD operating style, has helped the company establish itself.