- The CMA recently stated that the UK telecom deal between Cellnex and CK could lead to ‘significant competition concerns’.
- The investment banking group, Jeffries, recently stated that telecom companies in the EU could expect to see a rebound this year.
The UK’s competition body, the Competition and Markets Authority (CMA), recently stated that the EUR 10 billion telecom deal between Spanish telecom firm Cellnex and HK-based conglomerate CK Hutchinson might cause significant levels of competition concerns.
The CMA added that it could lead to higher prices or poorer quality of services for mobile charges.
CK Hutchinson owns the Three mobile network in the UK. According to the deal, Cellnex planned to acquire 24,600 of CK’s telecom towers in the EU.
The investment banking group, Jeffries, recently stated that telecom companies in the EU could expect to see a rebound this year due to growth in their top line, better regulatory environment, the market’s potential for consolidation.
The bank’s analysts said that the UK, Spain, Portugal, and Sweden telecoms market could expect to see some potential consolidation.
Let us take a closer look at 2 FTSE 100 index listed telecom stocks and their investment prospects:
- Vodafone Group PLC (LON: VOD)
Vodafone is a multinational telecom giant. The group plans to auction the world’s very first SMS as a non-fungible token (NFT), according to media reports. The auction is expected to bring in proceeds between US$ 100,000 and US$ 226,000 which will go to the UNHCR.
Vodafone’s H1 2022 adjusted EBITDA was at EUR 7,565 million, higher by 6.5 per cent from EUR 7,011 million in H1 2021.
Image source: Refinitiv
Its shares were higher by 1.43 per cent, trading at GBX 113.86 on 4 January 2022, at 10:18 AM BST. Whereas the FTSE 100 index was at 7,474.59, up by 1.22 per cent.
The group has a market cap of £30,510.44 million as of 4 January 2022.
- BT Group PLC (LON: BT.A)
BT Group PLC is a UK based telecom service provider. Patrick Drahi, a France-based billionaire, had recently increased his stake in the group from 12.1 per cent to 18 per cent through its telecom firm Altice UK.
The move sparked rumours of a potential takeover; however, BT subsequently released a statement saying it remains focused on its strategy being executed in a successful manner. It further added it aims to continue the business based on the interest of all its shareholders.
Its shares were higher by 1.33 per cent, trading at GBX 171.80 on 4 January 2022, at 10:52 AM BST.
Image source: Refinitiv
The group has given shareholders a return of 29.87 per cent on a one-year basis as of 4 January 2022. It has a market cap of £16,818.19 million as of date.
Tags: Vodafone, BT Group, telecom stocks, blue-chip stocks