Vodafone-Airtouch (NYSE: VOD) Message Board

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Technology Stocks : Vodafone-Airtouch (NYSE: VOD)

VOD 14.65

-0.4%

Jan 30 9:30 AM EST

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To: MrGreenJeans who wrote (2829)	5/31/2000 8:40:00 AM
From: Jules Shear	Read Replies (2) of 3175

MGJ- You're right. I forgot the cash from Vivendi as well as cash from other Mannesmann assets. Just helps make the point even stronger about the market overreacting to the issue of VOD having the "free cash flow" to finance the 3G licenses and build-outs without having to tap the capital markets again. Also, news about AirTel is a huge positive that is overshadowed right now with other news (earnings, Orange, etc.). VOD/BT/AirTel management/Spanish Banks have been in fighting for a long time about control of the company. Glad to see Vodafone finally win-out and get the mess behind them. This news by itself should be taken as a catalyst. JMO- but in the US- I don't see VOD as a long-term player in Verizon. I see them taking the cash and going after the GSM play in the US. Maybe the Do-Co-Mo news will help accelerate Verizon IPO plans (interesting that first comments about Verizon IPO timing are coming from Gent rather than BEL even though BEL is 55% of Verizon) in US to accelerate VOD's exit rather then VOD really needing the cash given the sale/IPO's of all the other assets. I believe there are favorable exit terms for VOD with Verizon. From a technical perspective, VOD is a GSM company and wants a "clean" international roaming solution in the short-term and clean evolution to 3G which a hybrid cdmaOne/GSM handset will not bring. It needs to happen at the network level which GSM will provide. On the political front, VOD and BEL have never really liked each other. They have been "forced" to be partners rather than choosing to be. And finally, rumors about VOD and Sonera would help reinforce this as Sonera already has equity positions in VSTR and PTEL in US. Just speculation on my part-but two or three years from now- I see the odds of VOD competing against BEL higher than them still being partners in Verizon. VOD's ultimate strategy is to have one standard, one network and seamless roaming throughout the globe which is a huge task to make happen. The Verizon patchwork of spectrum bands and cdmaOne/analog technology makes this even that much more difficult to do and does not make any strategic, technical, or political sense for them to keep.

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