Vodafone shares fall after Dutch spectrum auction

Vodafone's share price fell 1.80 per cent to 158.05p at 16:14 on Monday, three days after Vodafone Netherlands acquired spectrum licenses totalling 1.4bn euros.

Vodafone's share price fell 1.80 per cent to 158.05p at 16:14 on Monday, three days after Vodafone Netherlands acquired spectrum licenses totalling 1.4bn euros.

Vodafone Netherlands acquired spectrum of 2x10MHz in the 800MHz band, 2x10MHz in the 900MHz band, and 2x20MHz in the 1800MHz band. The spectrum licences are all valid for 17 years.

Additionally, Vodafone Netherlands acquired 2x5MHz in the 2.1GHz band for four years.

The spectrum award is expected to support Vodafone Netherlands' plans to develop the next generation of wireless data services, known as Long Term Evolution (LTE) technology.

However, markets were showing concerns over the costs for operators on Monday, after Dutch peer KPN plummeted in Amsterdam after paying more than expected to secure 120MHz of spectrum.

The company paid €1.352bn, much higher than the predicted price tag of around €500m, prompting it to cancel its final dividend for 2012 and substantially reduce its payout next year as a result.

KPN was down 13.07% at €4.03 in afternoon trade.

"Friday's Dutch spectrum auction results took the market by surprise with total proceeds 2.6 times higher than anticipated and Tele2 bidding aggressively to secure all new entrant spectrum," analyst Akil Dattani from JPMorgan Cazenove said.

"This will raise concerns around the Dutch mobile market outlook, which we believe is negative for all operators."

MF

Recommended

The Burberry share price looks like a good bet
Trading

The Burberry share price looks like a good bet

The Burberry share price could be on the verge of a major upswing as the firm’s profits return to growth.
5 Oct 2022
3 emerging market dividend stocks to buy now
Share tips

3 emerging market dividend stocks to buy now

Professional investor Omar Negyal of the JPMorgan Global Emerging Markets Income Trust picks three of his favourite emerging market stocks for income …
4 Oct 2022
Share tips of the week – 30 September
Share tips

Share tips of the week – 30 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
30 Sep 2022
The best British tech stocks from a thriving sector
Share tips

The best British tech stocks from a thriving sector

Move over, Silicon Valley. Over the past two decades the UK has become one of the main global hubs for tech start-ups. Matthew Partridge explains why,…
29 Sep 2022

Most Popular

Should you take a 25% tax-free pension lump sum in instalments?
Pensions

Should you take a 25% tax-free pension lump sum in instalments?

Taking out a 25% tax-free lump sum sounds appealing but it might not be the best way to manage your pension
30 Sep 2022
Mortgage early repayment charges: are they worth the cost?
Mortgages

Mortgage early repayment charges: are they worth the cost?

With interest rates set to rise further in the months ahead, is it worth swallowing early repayment charges to refinance your mortgage today?
4 Oct 2022
Why the Bank of England intervened in the bond market
Government bonds

Why the Bank of England intervened in the bond market

A sudden crisis for pension funds exposed to rapidly rising bond yields meant the Bank of England had to act. Cris Sholto Heaton looks at the lessons …
30 Sep 2022