** Smith & Williamson fund manager Mark Swain sees recentweakness in Vodafone on euro slide as decent entry pointto play more benign regulatory backdrop helping mobile telcosturn corner after yrs of declining revenues
** Swain, a co-manager of firm's long/short Enterprise fund,long VOD (has been for c.6 mths), welcomes positive regulatoryinflection point in European mobile for 1st time in long period
** But c.50 pct of VOD earnings in euros; stock down c.8 pctfrom late Jan peak
** Swain also holds BT, though sees VOD as the morecompelling given UK fixed-line regulation been positive for yrs& BT's share price responded accordingly Chart: http://link.reuters.com/wep44w
** Key problem in EU mobile telcos has been competition lawsenabling c.3-4 operators in region's markets in bid to increaseprice competition & secure lowest price for consumer - this hashit cos' ability to invest into networks
** Europe lags in broadband & 4G vs US which has muchsmaller no of players
** Region's regulators have newfound openness to M&A(step-up in investments into faster networks could help reviveeconomy); mergers seen in Austria, Germany, Ireland & Spain,meshing fixed line & mobile networks
** Vodafone shares up 1.2 pct this year vs a 5.2 pct risefor the FTSE 100 (RM: tricia.wright1.thomsonreuters.com@reuters.net)
Vodafone (VOD)