Vodafone Seeking Closer Ties with China Mobile and Verizon Wireless

Vodafone is seeking tighter cooperation between Verizon Wireless and China Mobile to cut network and handset costs, while also rolling out improved services for customers. Vodafone owns 45% of Verizon Wireless and holds a 3.3% stake in China Mobile.

Speaking to the Financial Times, Vodafone's CEO,  Vittorio Colao said that he is seeking "stronger and tighter co-operation" with China Mobile.

Mr Colao said: "If you think of three players, China Mobile is very strong in China; it's a big country. Vodafone is very strong in Europe, Africa, India. Verizon is very strong in the US.

"If these three companies could work more closely together in the management of customers, procurement and service creation, we could be unbeatable, quite frankly."

Vodafone's previous CEO, Arun Sarin had hinted that he would look at the restructuring of the Chinese telecoms market - now completed - and could use the firms holding in China Mobile as a "kitty" which was worth around US$13 billion at the time if investment opportunities arose.

Last February, China Mobile joined the LTE (Long Term Evolution) trials that were already being carried out by Vodafone and Verizon Wireless. Last April, China Mobile, Japan's Softbank and Vodafone set up a Joint Innovation Lab (JIL) to promote the development of new mobile technologies, applications and services.

On the web: Financial Times

Posted to the site on 27th January 2009