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NEWS
Issue #2001 - 10 (Mar. 2001)

(Updated on Mar. 7, 2001)

ACQUISITIONS, MERGERS & AGREEMENTS

Vodafone Aims for a Stronger Position in Asia

U.K. mobile operator Vodafone Group PLC last week strengthened its position within the Asian market. First the mobile operator signed a Strategic Alliance Agreement with China Mobile (Hong Kong) Limited and then acquired an additional 10 percent stake in Japan Telecom Co.

China Mobile Limited
The agreement with China Mobile provides for co-operation across many areas, including the exchange and sharing of corporate management; technical and operational expertise and resources; joint research and development; and implementation of standards and protocols. In addition, Vodafone has indicated it wishes to add its present two percent interest in the Chinese mobile telecom when the opportunity arises.

Through this alliance, the companies expect that their combined resources, expertise, and experience will help to create a global mobile platform, with unprecedented opportunity for shareholder value creation, Vodafone said.

Japan Telecom
By acquiring AT&T Wireless’ stake in the Japan’s No. 3 telecommunications carrier, Vodafone now holds a 25 percent interest in the company. According to The Wall Street Journal, bankers in Tokyo are expecting a power struggle to erupt between Vodafone and its rival BT PLC, who holds a 20 percent stake in the Japanese carrier. The report goes on to say that both British companies are interested in Japan Telecom’s mobile unit, J-Phone Communications, but with neither in full control, some observers say, is a recipe for conflict.

Vodafone will need a strong presence in Japan and China if it intends to become the global mobile player. But it will remain to be seen if Japan Telecom, with 16 percent of the Japanese market, and China Mobile, with a subscription base of 42.7 million, will allow a British foreigner the voice it is seeking.

For more information: http://www.vodafone.com/cgi-bin/VFAT/vfat/login.jsp?newsession=yes#_top

Mobileinfo Comments and Advisory: The entire world is watching Japan as a success story with its i-Mode and similar implementations. There is as much to learn in Japan but there is a lot of difference in infrastructure, culture and user expectations. You can learn but not transplant.

Note: This news release may contain forward-looking statements. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.

All trademarks used in this summary are the property of their respective owners.


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