Vodafone to invest £7bn in upgrade

A windfall from selling Vodafone’s stake in Verizon will be spent on upgrading service standards in the company’s five largest European markets.

Having had some time to think about what it will do with the money made from selling its position in Verizon, Vodafone has decided to improve its own product. The company will embark on operation ‘Project Spring’ to freshen up its ability to offer the best possible service for mobile device users.

One of the most attractive aspects for Vodafone investors has been the income return coming from the company’s Verizon dividend. The firm will not be able to easily replace this income flow and, in order for stockholders to remain confident in the firm, there will need to be a solid investment plan for how it intends to move forward.

Both northern and central European sales have seen an upturn in returns; however sales in southern Europe remain weak and continue to weigh on the company. Although the board has stated that it sees an improving environment, it could be some considerable time before southern Europe stops feeling like it is in recession.

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