Vodafone UK CEO: UK Mobile Market To See More Consolidation

LONDON -(Dow Jones)- The UK mobile phone market is likely to see further consolidation activity, according to Vodafone Group's UK Chief Executive Nick Read.

"I think consolidation will happen but that doesn't necessarily mean we will lead that consolidation," said Read Friday, speaking to analysts and investors at Vodafone's U.K. and Germany investor day in London.

Despite announcing Friday that Vodafone will work with Wal-Mart's UK supermarket chain subsidiary Asda to launch a new "virtual" mobile operator, Read said tough price competition would cause further consolidation among mobile phone operators.

The U.K. chief of the Newbury, England-based phone company, added that despite companies bundling mobile and fixed-line broadband, telephony and internet television services, he saw little indication that consumers wanted these "quad-play" services.

"We are seeing no evidence at all yet that there is a consumer need or demand for quad-play. I don't see these players at the moment gaining traction."

Vodafone Group Chief Executive Arun Sarin added that the company would increasingly focus on sharing telephone network equipment with other operators in order to achieve cost savings in Europe.

"The single largest cost saving opportunity in the business is network sharing," said Sarin.

Vodafone has recently announced network sharing initiatives with France Telecom's mobile division Orange in the U.K. and Spain.

Company Web site: http://www.vodafone.com

-By Daniel Thomas, Dow Jones Newswires; 44-20-7842-9264; dan.thomas@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 30th March 2007