Vodafone's capex could stay elevated, CEO outlines ambitious goal


With his company having just reaped a $130B Verizon Wireless windfall, Vodafone (VOD -1.9%) CEO Vittorio Colao says his company is open to keeping its annual capex above traditional levels once its recently-announced Project Spring is finished at the end of FY16 (ends March '16).

Project Spring calls on Vodafone to spend an extra £7B ($11.3B) in capex through FY16. £3B of that sum will be spent on European 3G/3G investments. £1.5B will be spent on expanding 3G coverage in Asia-Pac and Africa, £1B on wireline broadband investments, £1B on improving customer experience platforms (customer support, payments, etc.), and £500M on bolstering Vodafone's enterprise services.

Colao, whose company recently spent $14.2B to acquire German cable giant Kabel Deutschland, also declares Vodafone will be the only European carrier in five years to offer bundled mobile/wireline services to consumers across the continent, via some mixture of investments, acquisitions, and partnerships. That could be a hint Vodafone is exploring additional European wireline acquisitions.

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