Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Vodafone India, a subsidiary company of Vodafone Group plc (VOD - Analyst Report) was denied license extension in three major operating circles in India namely, Delhi, Mumbai and Kolkata. The company’s operating license would expire in Nov 2014. According to market news, Indian regulators have asked the company to bid auction for airwaves in areas in which they have completed 20 years of operations including key metropolises.

The Indian market remains one of the significant markets for Vodafone despite regulatory disputes that impede its growth in that country. Given the growth opportunities, the company is accelerating its investments in India to build infrastructure. In recently published reports, the company stated that it invested approximately INR 10 billion in 2012 in major cities like Delhi, Mumbai and Kolkata.

If the disputes continue, debarring Vodafone for continuing operations in lucrative zones, it would distress the company’s financials, as it has already infused huge capital in these cities. Further, Vodafone’s entering into a new license auction remains uncertain as it has already moved a petition against spectrum auction held in India, last month. The company went against the decision of the Department of Telecommunication in India to put up an auction for 900 Mhz spectrum by taking away licenses for the same from operators.

Based in Newbury, United Kingdom, Vodafone Group is the world’s largest revenue-generating wireless communications operator and the second largest carrier after China Mobile Limited (CHL - Snapshot Report), based on subscription. In the European market, the company operates with other industry players like Telecom Italia S.P.A (TI - Snapshot Report) and Telefonica SA (TEF - Analyst Report).

Vodafone has a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
LAKE SHORE G LSG 0.77 +6.05%
SKECHERS USA SKX 38.53 +4.50%
QUESTCOR PHA QCOR 80.07 +2.47%
VIPSHOP HOLD VIPS 156.35 +1.82%
ENLINK MIDST ENLC 36.29 +1.60%