Vodafone plans £900 million investment in UK network infrastructure

Vodafone has come out with plans for a further £900 million investment in its network infrastructure in a bid to ensure the firm's readiness to meet the expected demand for 4G services, which would be live by the end of the summer in time to capitalise on the launch of the next Apple iPhone.

According to the rollout schedule, a late August or early September launch for the services could be expected. However, according to commentators, this was quite late considering the 4G auctions were completed in February, when the firm paid £802 million for spectrum.

Vodafone confirmed the plans as part of an announcement for the investment of further £900 million into its network infrastructure, which would include fixed network offerings from its £1.1 billion purchase of Cable & Wireless Worldwide last year to widen its offerings to the business sector.

According to Vodafone chief executive Guy Laurence, the telco was bringing together the best of mobile and fixed communications to help its business customers make their communications work for them.

For consumers, it was another important step towards the arrival of its ultra-fast 4G service later this year, he added.

According to commentators, although Vodafone might be waiting for the launch of the next iPhone, it would still face fierce competition from EE, O2 and Three, which were set to have services live by around the same time and would no doubt peg their 4G launches onto the release of the new device.

Vodafone had already outbid its rivals in buying airwaves for superfast mobile broadband, spending around £802 million in the regulator Ofcom's auction of radio spectrum in February.

Operators in the UK, and the rest of Europe, were making a big bet on faster networks eyeing increased data consumption that would boost falling revenues, according to commentators.

After Vodafone, launched Spain's first 4G service last week, it said it was spending over £2.5 million a day this year upgrading its UK network. Services are expected to start later in the summer.

The additional spending this year would be expended on integrating fixed line network in the UK, which it acquired with the takeover of Cable & Wireless Worldwide (CWW) last year.

Vodafone said in September that it would take 18 months to two years and would need around £500 million pounds to make up for years of under investment in CWW's network and customer service.