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Technology Stocks : Vodafone-Airtouch (NYSE: VOD) -- Ignore unavailable to you. Want to Upgrade?

To: MrGreenJeans who wrote (3146)	6/28/2001 9:10:40 PM
From: MrGreenJeans	Read Replies (1) \| Respond to of 3175

Vodafone may hang up on Australia By GEOFF ELLIOTT 29jun01 AUSTRALIA's No.3 mobile phone player Vodafone looks set to ride out the storm in the $7.6 billion mobile phone market, but speculation persists that it would willingly sell its business here. With the UK parent company coming under increasing pressure to ensure its profit growth matches the expectations of a two-year rampant acquisition strategy, Vodafone's attention around the Pacific Rim is turning more to Japan and China than places like Australia and New Zealand. Mobile phone executives are anticipating at least two to three years of slowing growth here while executives are eyeing the big opportunities elsewhere, particularly China where mobile phone growth is zooming. Analysts say Vodafone Pacific managing director Brian Clarke and his UK bosses face an awkward choice over the level of resources to commit to Australasia at a time when the return on capital could be better in places like China. A spokeswoman for Vodafone said the company was committed to Australia and New Zealand. "We are focusing on profitable growth and we have substantial regional market share," she said. Sources indicate the company will be "bunkering down" over the next couple of years. But the speculation about Vodafone's tenure in Australia comes as Vodafone shares in the UK are down about 18 per cent, crashing after its annual results were reported on May 29. It's market capitalisation has fallen below pound stg. 100 billion ($275 billion) and compares poorly with with its peak of more than pound stg. 270 billion. Championing the possibility that Vodafone might quit Australia altogether has been ABN Amro analyst Andrew Hines who, in a new report yesterday, said that Vodafone may be considering pulling out. "Vodafone missed out on acquiring Optus to SingTel and it must now reassess its strategies," Mr Hines said. "The signs are building that Vodafone may decide to exit the market. However, the company continues to publicly affirm its commitment to the market." Mr Hines said a sale could be in the offing to the Hutchison and Telecom Corp of New Zealand joint venture, established to create a third generation (3G) mobile phone service. The so-called 3G services refer to internet access on devices like mobile phones. "The sale of the business to Hutchison 3G would appear to be a win-win for both parties, although as usual it will all boil down to price," Mr Hines said. "This would be the big consolidation play in our market - forget One.Tel disappearing, this is the big one." "It's taken Vodafone eight years to build its current position of 20 per cent market share and two million subscribers and it is still not generating an adequate return," he said.