Vodafone share price up as data traffic surges due to coronavirus

The telecoms company’s shares climbed higher on Wednesday after revealing that its data traffic has surged due to the coronavirus outbreak.

Vodafone shares are up 5% on Wednesday after the company revealed that its data traffic has surged due to the coronavirus outbreak.

The world’s second largest mobile operator told investors that the Covid-19 outbreak has led to data traffic on its network to surge by as much as 50% in some markets.

The telecoms provider said that it plans to maintain network service and provide additional capacity for critical government functions to help combat the Covid-19 outbreak, with the company forecasting that data use will continue to increase.

Vodafone is trading at 113p a share as of 11:45 (GMT) on Wednesday.

The telecoms company has bucked the wider market decline, with the stock outperforming the broader market, with the FTSE 100 down 4% on Wednesday.

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UK mobile networks face issues

UK mobile networks have experienced issues in recent weeks, though they contend that it is not directly related to record numbers of people working from home as a result of the coronavirus.

Network issues are ‘affecting all operators and we are working closely to fix it’, EE told BBC News.

The problem is being blamed on ‘interconnect issues’ between mobile operators but ‘we don’t believe it is connected to the rise in home working’, EE added.

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FTSE 100 looks to hold 5000

The FTSE 100 losses have been contained around 5000 since Monday, with dips to this level finding support for the time being, according to Chris Beauchamp, chief market analyst at IG.

‘However, rallies towards 5400 over the past 24 hours have run into resistance,’ he said. ‘The overall trend is still down, therefore, trying to buy dips is likely to be only a short-term view.’

‘So far, there is no sign of the index beginning to build higher highs and higher lows,’ he added.

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