India tops in telecom capital investment by Vodafone in last 4.5 years

By Telecom Lead Team:
Vodafone plc U.K. has invested 4433 million pounds as capital expenditure in
India in the last four and half years, ranking India as the top investment
destination for the mobile major. Vodafone plc completed the acquisition of
Vodafone Essar in India in May 2007.


Germany, between fiscal 2007-08 and H1 FY 2011-12,
received 3142 million pounds towards capital investment. Italy attracted 2401
million pounds as capex during the period.


Between FY 2007-08 and H1 FY 2011-12, Vodafone India’s
total revenue was 13597 million pounds. Vodafone’s German business clocked
33254 million pounds and Italy 24636 million pounds.(Please see charts on Vodafone’s capital investment in India
and Vodafone’s revenue in India at the end of the article)


Vodafone’s investment in India towards telecom
infrastructure spend is commendable considering the mobile operator’s current
revenue in the second largest mobile market in the world. However, comparing
the revenue potential and mobile population of India, Vodafone needs to cough
up more.


In fact, during the tax case, Vodafone’s capital
investment has taken a beating.

In H1 2011-12, Vodafone’s Capex stood at 329 million
pounds in India as compared with 870 million pounds in 2010-11 and 853 million
pounds in 2009-10.


In 2011, Vodafone, in its financial report, said capital
expenditure was 6.2 billion pounds, broadly flat on last year and in line with
its target, as the mobile operator focused on widening our data coverage and
improving network performance.


In 2010, the mobile operator said it maintained capital
investment at a similar level to the previous financial year and invested 6.2
billion pounds. Capital expenditure in Europe was slightly higher than in the
2009 financial year as it took advantage of its strong cash generation to
accelerate investment in fixed and mobile broadband networks, and in services
to enterprise customers.

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