I/C article Thu 23Feb 2017.26 Feb 2017 08:45
Released after market last Thursday....By Megan Boxall - Investors Chronicle.
"BUY TIP FOR INCOME, MEDIUM RISK....
Vodafone (VOD) is finally getting out of pagers, having confirmed that it has sold its pager business to troubled support services group Capita (CPI).
The humble pager may seem archaic in the age of the smartphone, but the device is still used by medics, coastguards, firefighters and birdwatchers. That said, only 1,000 customers are being transferred to Capita's network in this deal.
The market was awash with paging companies in the 1990s, but Vodafone's service was the last dedicated paging network run by a British telecoms company. Orange cut its network in 2002 and O2 followed suit two years later. Now Capita is the only UK company to run a paging business.
I/C VIEW:
Selling this 20th century business unit can only be good news for Vodafone, although the deal comes with little financial reward. Recently the mobile titan's energy has focused on network upgrades, product launches and overseas acquisitions - a strategy we like the look of. Buy at 202p.
Last IC View: Buy, 204p, 15 November 2016