Top 6 Vodafone Investor Day Snippets
Rather than a blow by blow account of the three hour Vodafone Mediterranean Festival, I’d prefer to list my list of interesting factoids gleaned from the event.
Using €16m / annum as basis and applying a discount of 11.3% (OFCOMs estimate of the mobile operators WACC) over 15 years which happens to be the normal length of a OFCOM license gives a value of €113m.
Given that the UK is a bigger economy than Italy, this figure should provide a benchmark for the value of the UK “digital dividend” spectrum which is 14 8MHz channels x €113m. – more or less around €1.6bn.
Of course, the value of spectrum will go up or down depending upon the short term success or failure of the various broadcast MobileTV trials.
My own personal opinion is that I am amazed that Italy has found spectrum for TIM, H3G Italia and Vodafone for their own DVB-H broadcast networks, whereas the UK is struggling.
I like this strategy a lot: focus on the least competitive element of the market using your own infrastructure. Italy are now up to 362k Vodafone Casa Homes in 5 months which is a pretty good ramp-up.
Spain seemed to have a very similar strategy.
1. Existing KPIs don’t make sense in a 1.7x multi-sim environment.
This is from the CFO of Vodafone Italy – so it must be true. Some had already drawn the same conclusion months ago and some are currently working on a meaningful set of metrics.2. Rental Cost UHF Spectrum - €16m per annum.
Vodafone Italy has rented a nationwide channel from Mediaset at a cost of €16m per annum. I presume they have only rented one 8MHz TV Channel in the 470MHz-854MHz band.Using €16m / annum as basis and applying a discount of 11.3% (OFCOMs estimate of the mobile operators WACC) over 15 years which happens to be the normal length of a OFCOM license gives a value of €113m.
Given that the UK is a bigger economy than Italy, this figure should provide a benchmark for the value of the UK “digital dividend” spectrum which is 14 8MHz channels x €113m. – more or less around €1.6bn.
Of course, the value of spectrum will go up or down depending upon the short term success or failure of the various broadcast MobileTV trials.
My own personal opinion is that I am amazed that Italy has found spectrum for TIM, H3G Italia and Vodafone for their own DVB-H broadcast networks, whereas the UK is struggling.
3. Vodafone Italy & Spain DSL Strateg.
It seemed that the Italians were more excited by no internet and light internet homes than the heavy internet homes. Obviously the heavy internet homes need mega-DSL pipes served by the re-sold FastWeb product, whereas no internet are served by the Vodafone Casa product and light internet by the Vodafone Casa with Internet Box – HSDPA boxes.I like this strategy a lot: focus on the least competitive element of the market using your own infrastructure. Italy are now up to 362k Vodafone Casa Homes in 5 months which is a pretty good ramp-up.
Spain seemed to have a very similar strategy.
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