Vodafone to spend additional $9 billion in Capex after Verizon deal

The Verizon-Vodafone deal worth $130 billion, which was announced on Monday, is good news for telecom vendors such as Huawei, ZTE, Alcatel-Lucent, Nokia Solutions Networks (NSN), Ericsson, etc.

The U.K.-based telecom giant will spend an additional $9.32 billion as Capex during the next 3 years.

Earlier, Vodafone Group announced Capex (capital expenditure) of around £6.26 billion ($9.73 billion) in FY 2014 alone. ( Vodafone plans Capex of £6.26 billion in FY 2014, announces network strategy )

This is significant news for telecom vendors which are reeling under pressure due to slowdown in Europe and other markets. ( Vodafone signs Verizon Wireless deal for $130 billion )

Also, there are also opportunities for Vodafone to spend in acquisitions. Since there will be more investments in companies being acquired by Vodafone in emerging telecom markets, it will boost revenues of telecom equipment makers.

Vodafone says Project Spring will set up network and service leadership through additional investments of £6 billion over the next three financial years.

“We will enhance Vodafone’s prospects through Project Spring, our new program of additional organic investments in 4G, 3G, fiber and broadband, enterprise services and improved customer experience across all of our markets,” said Vodafone Group CEO Vittorio Colao.

Vodafone-Verizon deal for Capex

Project Spring

Vodafone says the transition to 4G and unified communications makes this the right time in the evolution of the sector for Vodafone to pursue further development and differentiation.


It will look at an accelerated 4G network build, covering 90 percent of our five main European markets by 2017, supported by single RAN and high capacity backhaul.

Vodafone will have deeper 3G coverage and capacity in mature markets.

As part of Vodafone’s unified communications strategy, there will be extended fiber roll-out, as well as widened NGN and VDSL resale reach, Vodafone said on Monday.

It will have an upgraded distribution presence, both online and retail.

Vodafone will look at additional 3G voice and data coverage in emerging markets such as India.

It will enhance enterprise service portfolio, including IP-VPN, Cloud, Hosting and M2M. It will also look at faster deployment of mobile payment services; and development of new and standardized systems to improve customer experience and simplify.

Baburajan K
[email protected]