Boston, MA 06/06/2014 (wallstreetpr) – Vodafone Group Plc (ADR) (NASDAQ:VOD), the British telecom operator with extensive mobile networks across the world, announced a new marketing deal with Canada’s largest wireless provider Rogers Communications Inc. (USA) (NYSE:RCI).
The latest hookup will enable the two telecom companies to explore new business opportunities in the competitive telecom industry. Vodafone withdrew its stake in Verizon Wireless through which it obtained more than $130 billion. The company has been seeking to put that money into various investments around the world, especially in the lucrative mobile data business.
The company announced earlier this year that it would seek strategic acquisitions and partnerships to boost its performance. However, it was itself reportedly being circled for acquisition with the U.S. telecom giant AT&T Inc (NASDAQ:T), which is desperate for mobile data opportunities in Europe.
Partnership with Rogers
The newly announced partnership with Rogers will enable Vodafone Group Plc (ADR) (NASDAQ:VOD) to broaden the services it offers to Rogers’ customers. In return, Rogers will benefit from Vodafone’s big international infrastructure. Vodafone’s mobile networks stretch from Australia to India, Europe and the Middle East, not to forget Africa. Therefore, Vodafone will give Rogers access to one of the world’s richest network connections that capture about 40 countries.
Analysts also believe that the latest deal result in a roaming agreement between the two telecom operators, a move that support cost-savings in the companies.
Rogers previously sought a deal with AT&T Inc, but such arrangements fizzled.
License renewal rejected
While Vodafone Group Plc (ADR) (NASDAQ:VOD) is proud of its businesses around the world especially given its austerity measures and strategic partnerships, the company has a big headache to deal with in India. The company is set to lose service licenses in at least seven markets after India’s Department of Telecommunications declined to renew the licenses in the markets. Instead, the company is being asked to bid for spectrum in the upcoming auction.