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Analysts Say Vodafone Should Sell Verizon Wireless Stake

2:30 am on March 18, 2006 | Category: Business

Now that Vodafone has finalized a deal to sell its Japanese division to Softbank, many analysts are saying that it would be in the mobile giantâ€™s best interest to also sell its stake in US-based Verizon Wireless.

The main reason for this would be that Vodafone could use the money from a sale to increase the speed of its expansion into emerging markets like China and India.

Some analysts also say that it is best for Vodafone to stick to its primary wireless technology, GSM, which is used in Europe and most developing markets. Verizon, on the other hand, uses a CDMA2000-based network to service its customers. This discrepancy in wireless formats could be a major incentive for both partners to part ways and focus on their own respective markets.

Verizon Communications has already made an offer to buy the 45% share of its wireless division that is owned by Vodafone. Although an understanding has not yet been reached between the two companies, it appears that with a bit of encouragement, Vodafone could be convinced to sell.

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