Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  Vodafone Group Plc    VOD   GB00BH4HKS39

VODAFONE GROUP PLC

(VOD)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Vodafone Warns Full UK Ban on Huawei Would Cost Billions of Pounds

07/09/2020 | 09:17am EST

--Vodafone warned a removal of Huawei equipment from its U.K. networks would cost billions of pounds

--BT Group said costs on top of the GBP500 million hit it has already disclosed would depend on the timing

--Huawei expects no short-term impact from U.S. restrictions on its supply capability to the U.K.

 

By Adria Calatayud

 

Vodafone Group PLC warned Thursday that a full removal of Huawei Technologies Co.'s equipment from its U.K. networks would imply additional costs of low single-digit billions of pounds.

Andrea Dona, head of networks at Vodafone U.K., said a change in the guidance on telecom-equipment suppliers given by the U.K. government would delay the rollout of its 5G networks and force it to book extra costs, as investments would need to refocus on the removal of equipment already deployed.

"If the current guidance were to be tightened and further restrictions were to be imposed, we would need to spend in the order of billions to change our current infrastructure," Mr. Dona said in a session of the U.K. parliament's science-and-technology committee.

For rival BT Group PLC, the costs of a full ban on Huawei would depend on the timing of its implementation, its Chief Technology and Information Officer Howard Watson told British lawmakers.

BT earlier this year said it expected to take a 500 million-pound ($630.5 million) hit over five years as a result of the government's restriction on Huawei equipment. If a full removal is implemented, BT's extra costs would be in the tens-to-a-hundred million pounds on top of the GBP500 million already disclosed, because 4G equipment would need to be replaced anyway, Mr. Watson said.

Victor Zhang, head of Huawei's U.K. operations, told British lawmakers in the same session that recent U.S. restrictions imposed on the company will have no immediate impact on its supply capability to the U.K.

The U.K. government earlier this year allowed China's Huawei to build parts of its 5G network, but limited its market share to 35% and banned it from the core parts of the network. However, recent media reports indicate British officials are leaning toward advising wireless carriers to reduce or altogether drop Huawei.

Replacing telecom equipment is challenging and costly and a full removal of Huawei gear would require at least five years, Mr. Watson said.

"It is logistically impossible to get to zero in a three-year period. That would literally mean blackouts for customers on 4G, 2G as well as 5G throughout the country," Mr. Watson said.

The U.K. telecom uses equipment made by Huawei and Finland's Nokia Corp. in its radio-access networks, with the Chinese company representing a majority of BT's current 5G network and two-thirds of its 2G and 4G network, Mr. Watson said. BT's core networks use Huawei, which is being removed, and Swedish vendor Ericsson AB.

"We have tended to use Huawei in the more urban areas of the U.K. and that is where we tended to launch 5G initially, so the majority of our current 5G deployment is on the Huawei network," Mr. Watson said.

Vodafone is currently using equipment made by Huawei and Ericsson in the 5G radio-access networks it is deploying in the U.K., Mr. Dona said, who didn't give details on the split between the two suppliers, citing commercial sensitivity. Huawei isn't part of the core of Vodafone's 5G network, where the aggregation of data occurs, he added.

A third of Vodafone's 2G, 3G and 4G radio-access networks use Huawei equipment, and the remaining two thirds use gear made by Ericsson, Mr. Dona said.

 

Write to Adria Calatayud at adria.calatayud@dowjones.com

 

Stocks mentioned in the article
ChangeLast1st jan.
BT GROUP PLC 6.41% 134.45 Delayed Quote.-34.34%
ERICSSON AB -0.53% 104.05 Delayed Quote.28.25%
NOKIA OYJ -0.35% 3.3 Delayed Quote.0.47%
VODAFONE GROUP PLC 0.08% 127.16 Delayed Quote.-13.42%
All news about VODAFONE GROUP PLC
02:41aVODAFONE : to launch Nreal AR and MR glasses across Europe
PU
11/30Britain bans new Huawei 5G kit installation from September 2021
RE
11/30Britain bans new Huawei 5G kit installation from September 2021
RE
11/30Portugal's main telcos sign up for 5G auction amid legal dispute
RE
11/29VODAFONE : Completion of the merger of Bharti Infratel and Indus Towers
PU
11/29VODAFONE : network takes to the sky to ensure safe passage for drones
PU
11/27VODAFONE : Ireland Says Currently Experiencing Interruptions On Some Of Data Ser..
RE
11/26VODAFONE : Buy rating from UBS
MD
11/25TELEFONAKTIEBOLAGET LM ERICSSON : VODAFONE NETWORK TAKES TO THE SKY TO ENSURE SA..
AQ
11/23Vodafone hit by three-hour mobile network outage in Germany
RE
More news
Financials
Sales 2021 43 110 M 52 456 M 52 456 M
Net income 2021 2 157 M 2 624 M 2 624 M
Net Debt 2021 42 872 M 52 167 M 52 167 M
P/E ratio 2021 18,8x
Yield 2021 6,40%
Capitalization 37 621 M 45 490 M 45 778 M
EV / Sales 2021 1,87x
EV / Sales 2022 1,80x
Nbr of Employees 105 263
Free-Float 92,7%
Chart VODAFONE GROUP PLC
Duration : Period :
Vodafone Group Plc Technical Analysis Chart | VOD | GB00BH4HKS39 | MarketScreener
Technical analysis trends VODAFONE GROUP PLC
Short TermMid-TermLong Term
TrendsBullishNeutralBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 22
Average target price 1,91 €
Last Close Price 1,40 €
Spread / Highest target 82,8%
Spread / Average Target 36,0%
Spread / Lowest Target -27,2%
EPS Revisions
Managers
NameTitle
Nicholas Jonathan Read Group Chief Executive Officer & Executive Director
Jean-François M. L. van Boxmeer Chairman
Margherita Della Valle Group Chief Financial Officer & Director
Pierre Klotz Finance Director
Johan Wibergh Group Chief Technology Officer
Sector and Competitors
1st jan.Capitalization (M$)
VODAFONE GROUP PLC-13.42%45 490
AT&T INC.-25.56%207 268
T-MOBILE US69.78%165 252
SOFTBANK GROUP CORP.55.19%129 029
CHINA MOBILE LIMITED-27.63%123 750
NTT DOCOMO, INC.27.39%119 574