VOD, BT.A, AAF: 3 FTSE listed telecom stocks to buy amid new telecom laws

Highlights

• The UK government has unveiled new laws to reduce red tape from the 5G rollout and improve mobile phone connectivity for people living, travelling, and working in rural areas.
• Mobile network operators will get more flexibility to upgrade their existing infrastructures without even taking prior approval.

The UK government has announced new laws that would reduce red tape from the 5G rollout and improve mobile phone connectivity for people living, travelling, and working in rural areas. The new law will help more people to access improved 4G and cutting-edge 5G coverage across the country. It would also help to reduce the need for new phone masts, minimise the impact of new infrastructure and protect and preserve rural scenery.

Under the new rules, mobile network operators will get more flexibility to upgrade their existing infrastructures without even taking prior approval. However, any new infrastructure and ground-based kit will still need the approval of landowners and local authorities, respectively.

The new law with an aim to spread 5G faster, will have the permission of making new and existing phone masts up to five meters higher and two meters wider. The new policy will support operators to improve the range of networks to bring everyone into next-generation digital connectivity, to share infrastructure, and create room for the extra gear needed to improve the network.

The Department of Digital, Media, Culture, and Sport (DCMS) said that it would place harsh new legal taxes on operators to lessen the virtual impact on protected infrastructures. The department has also termed the new plan “barrier-busting”.

5G is the next generation of mobile networks as it offers a speed 65,000 times higher than that of the 4G network. Since the start of the pandemic social and work lives suddenly shifted online, which has necessitated access to high-quality connectivity much more than ever before.

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Let us look at three FTSE 100-listed telecommunications stocks that are likely to be in focus now:

Vodafone Group Plc (LON: VOD)

FTSE 100 listed Vodafone Group Plc is a multinational telecommunication company that mainly operates in Europe, Asia, Africa, and Oceania. The company’s stock has a primary listing on London Stock Exchange (LSE), while it has a secondary listing on the NASDAQ stock exchange.

The company has recently announced the sale of INR 63.6 million shares in Indus Towers Limited and has entered into an agreement with Bharti Article Limited to sell a further INR 127.1 million shares in Indus.

The market cap of the company stood at £32,555.09 million as of 8 March 2022. The company’s shares since the start of this year have given a return of 5.11%.

Vodafone Group Plc’s share was trading at GBX 117.20, down by 3.08%, at 10:58 AM (GMT) on 8 March 2022. 

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BT Group Plc (LON: BT.A)

BT Group Plc is an FTSE 100-listed telecom company. It provides telecommunications and network services in around 180 countries across the globe. The company has recently entered into exclusive talks to form a new joint venture of sport and entertainment with Discovery, Inc. for UK customers.

BT Group Plc’s shares were trading at GBX 163.05, down by 0.49%, at 11:00 AM (GMT) on 8 March 2022. 

The market cap of the company stood at £16,264.46 million as of 8 March 2022. The company has delivered a return of 15.00% over the last one year as of 8 March 2022.

Airtel Africa Plc (LON: AAF)

Airtel Africa Plc is an FTSE 100-listed multinational company. Apart from providing telecommunication services the company also provides mobile money services in 14 countries in Africa. Its subsidiary, Airtel Kenya Networks Limited, has recently got approval for the replacement of its frequency licence for 2x10 MHz of spectrum for ten years. The company will have to pay a total of around US $20 million in four instalments over the next three years for settlements of its operating and spectrum licences with the Communications Authority of Kenya.

The company has also entered into a memorandum of understanding (MOU) to sell its Chad and Gabon tower assets to a telecom infrastructure company in Africa, Helios Towers Plc.

Airtel Africa Plc’s shares were trading at GBX 130.70, up by 2.19%, at 11:06 AM (GMT) on 8 March 2022. 

The market cap of the company stood at £4,806.68 million as of 8 March 2022. The company has delivered a return of 65.89% over the last one year as of 8 March 2022.

Note: The above content constitutes a very preliminary observation or view based on industry trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.