Vodafone ends talks with BT for new contract

Vodafone has bowed out of negotiations to provide a mobile service to fixed-line operator BT Group, Reuters reported Monday.

Vodafone has bowed out of negotiations to provide a mobile service to fixed-line operator BT Group, Reuters reported Monday.

Vodafone has provided BT with mobile services for the past nine years but was in the running for a new agreement.

Talks over the contract were dropped after Vodafone acquired rival fixed-line business Cable & Wireless, bringing an end to their long-standing partnership.

Vodafone's withdrawal is expected to leave Telefonica's O2 and EE, owned by France Telecom and Deutsche Telecom, in the running for the BT deal.

Telecom companies have been vying for a partnership with BT after it won a large amount of spectrum at an auction to secure Britain's superfast fourth generation (4G) mobile airwaves.

The 4G service will allow the company to boost its wifi offering and to launch a full BT-branded mobile service to consumers.

"We can confirm we are making good progress with our tender for a mobile partner," a BT spokesman said.

"The 4G spectrum we obtained recently means we have a strong hand and that has been recognised in the bids we have received to date. We hope to conclude the process in the coming months and we will comment further when the tender has been concluded."

BT Group's shares rose 0.99% to 317.10p at 14:30 Monday while Vodafone fell 0.56% to 196.60p. Vodafone is due to deliver its full-year results on Tuesday.

RD

Recommended

Three sustainable stocks that are doing well by doing good
Share tips

Three sustainable stocks that are doing well by doing good

Professional investor Peter Michaelis of the Liontrust Sustainable Investment Team picks three stocks to buy that are helping to create a cleaner, saf…
26 Jul 2021
Share tips of the week – 23 July
Share tips

Share tips of the week – 23 July

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
23 Jul 2021
Will Zoom’s $15bn purchase help it expand?
Tech stocks

Will Zoom’s $15bn purchase help it expand?

The videoconferencing platform became a household name during the pandemic, but it now needs new sources of growth. Alex Rankine reports
23 Jul 2021
Philip Morris goes “beyond nicotine”
Stocks and shares

Philip Morris goes “beyond nicotine”

US tobacco giant Philip Morris International has agreed to pay £1bn for British inhaler specialist Vectura.
23 Jul 2021

Most Popular

The MoneyWeek Podcast: Asia, financial repression and the nature of capitalism
Economy

The MoneyWeek Podcast: Asia, financial repression and the nature of capitalism

Russell Napier talks to Merryn about financial repression – or "stealing money from old people slowly" – plus how Asian capitalism is taking over in t…
16 Jul 2021
Why the UK's 2.5% inflation is a big deal
Inflation

Why the UK's 2.5% inflation is a big deal

After years of inflation being a financial-assets problem, it is now an “ordinary things” problem too, says Merryn Somerset Webb. But central banks st…
16 Jul 2021
Commodity supercycle or not, here’s a metal that’ll still be in demand – tin
Industrial metals

Commodity supercycle or not, here’s a metal that’ll still be in demand – tin

Commodity prices may have come off the boil recently. But for tin, the only way is up. Dominic Frisby picks the best ways to invest.
7 Jul 2021