Analysts at French bank Natixis said: The service will enable Vodafone to connect up its base stations and core network at a much lower cost than with terrestrial solutions (fibre, DSL, radio) in isolated and sparsely populated regions. Avanti had already mentioned that it was conducting tests with Vodafone. As such, this contract is not entirely surprising. It is still extremely good news for Avanti, however, as it provides proof of the quality of Avanti's backhaul solution, [it] will substantially boost the group's prospective sales in the second half of 2014 [and] in the medium term, it opens up enormous potential in terms of demand. Indeed, the connection of just 2,000 base stations would be enough to use up all of the capacity on the two satellites Avanti currently has in orbit. Next Interim will be interesting.
What Williams said in the RNS
We are proud to have reached the point where Vodafone has sufficient confidence in our network's quality and flexibility to trust us with this demanding and complex work. We are proud to be serving Vodafone and look forward to a strong and growing partnership". It is the "strong and growing partnership" that intrigues me. I do not recall AVN referring to any of its other customers as being in partnership with it. I wonder whether the simple answer to the rise in the SP is that the volume of business generated by this new contract is actually huge. The MM's believe it. We shall find out when the next interim is published.
I can afford to fill the looney bus now! I am in black! It took over a year but it got there. Question is sustainability, if the possibility of Vodafone interest is helping the sp i think Vodafone will have to pay good money to buy us. I also have no idea how much, that will depend on balance sheet, potential, pension founds, property..... The list just goes on. Something is helping the share price up and I am struggling to see what it could be apart from the possibility of a very cash rich company in the same sector (communication) wanting to spend 30 billion this year in acquisition. Vodafone will have to do something with their money, buying us will be nothing to them.
Good Afternoon Gambit !! No need to refuel the loony bus just now . I've no idea what price Vodafone would have to pay to get AVN now ...but I suspect a lot less than the SP will hit through organic growth over next 2-3 years ? Regards from Sunny SW London
Last paragraph is very interesting: Mr Colao said recently the group could have the capacity to spend $30bn to $40bn on acquisitions in coming years and no deal should be too big if it makes strategic sense.
I wonder if this has something to do with the SP going up? Would this create business for AVN? http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/telecoms/10683591/Vodafone-raises-bid-for-Spanish-company-Ono.html
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.