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

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Bitcoin: fool’s gold or the new gold?
Bitcoin

Bitcoin: fool’s gold or the new gold?

With bitcoin hitting new highs last week, and close to becoming a mainstream investment, is it really gold for the 21st century?
15 Jan 2021
Forget austerity – governments and central banks have no intention of cutting back
Global Economy

Forget austerity – governments and central banks have no intention of cutting back

Once the pandemic is over will we return to an era of austerity to pay for all the stimulus? Not likely, says John Stepek. The money will continue to …
15 Jan 2021
The MoneyWeek Podcast: bitcoin special
Bitcoin

The MoneyWeek Podcast: bitcoin special

Merryn talks to bitcoin experts Dominic Frisby and Charlie Morris to get the lowdown on the cryptocurrency to find out why it's such a huge global phe…
15 Jan 2021
Free 6 issue trial then continue to