Why calls for Vodafone CEO's head are unwarranted

As Vodafone shares slide to new lows, investors have been making it clear that they chief Arun Sarin should go. But, says Ben Laurance, Sarin isn't to blame - all telecoms are struggling.

There has been much ill-disguised glee over the past few days as Vodafone's share price has slid to what has unfailingly been described as a new low'. The company, once held up as the exemplar of a British industrial champion, now provokes much tut-tutting and shaking of heads plus a fair number of unpleasant smirks as the City reflects on its misfortunes.

Certainly, Vodafone's share price looks sickly: in spring 2000, when investors were in love with all things to do with telecoms, it was nudging the 400p mark; in recent days, it has been as low as 110p. But surely that says at least as much about the mass hysteria of the dotcom boom as it does about the state of Vodafone now. And don't forget: a really smart and lucky investor could have bought the shares for little more than 80p in summer 2002. How many of those now deriding Vodafone were saying that the firm, in common with all telecoms companies, was ludicrously overvalued six years ago? How many spotted its undervaluation when the shares slid below £1?

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