According to CTK Vodafone halts preparations of early UMTS launch due to low return on the service. Evidence from domestic as well as foreign markets shows, that revenues don’t meet previous expectations.
Our view:
We see the news as neutral for today’s trading, however this step may slightly hurt Vodafone ambitions to increasing its market share and T-Mobile or TEF O2 CR might benefit from possible widening of its customer base. On the other hand this might raise worries also about the return on TEF O2 CR or T-Mobile.