Boston, MA 04/09/2014 (wallstreetpr) – Buoyed by the huge cash from the sale of a stake in Verizon Wireless, Vodafone Group Plc (ADR) (NASDAQ:VOD) is all over the map currently. The company announced plans to expand branded outlets in the U.K. and it is also currently circling peers in Europe for the acquisition in order to diversify and grow. However, the company is headed for a fierce competition against BT Group plc (ADR) (NYSE:BT), especially in the mobile data service.
Expansion and diversification
Vodafone Group Plc (ADR) (NASDAQ:VOD) announced last week that it will open 150 more outlet shops in the U.K. over the next 12 month. And in so doing, the company said it will be able to create more than 1,400 jobs in the country. The company has earmarked 100 million pounds for investment in the new shops. The opening of the new outlets will bring the number of Vodafone branded shops in U.K. to more than 500. In order to enhance customer experience for its more than 19 million users, the company said it will invest 1 billion pounds in U.K. this year.
The third largest carrier in Britain got the backing of Prime Minister David Cameron in its increased investment, in the country.
Competition for data offering
With the rise of free mobile messaging services WhatsApp, telecoms operators are increasingly losing text and voice revenue. In this situation, carriers are turning to mobile data business which looks lucrative given the increasing penetration of smartphones. However, for operators like Vodafone Group Plc (ADR) (NASDAQ:VOD), cracking the mobile data marketplace is likely to be a daunting task.
With BT Group looking to break more forcefully into the U.K. mobile data business, Vodafone is in for a run for its money. BT has invested billions over the past years to improve its mobile Internet infrastructure. The company also acquired more 4G mobile spectrum recently, and these are sure to rival Vodafone’s’ own upgraded mobile data networks. It, therefore, means that Vodafone Group Plc (ADR) (NASDAQ:VOD) must undertake very strategic acquisitions to ensure that BT doesn’t eat its lunch in the U.K mobile space.
