>> Mergers and acquisitions are out of fashion at Vodafone. New boss Nick Reed aiming to take an axe to costs instead. Pushing down on operating expenses by over $1.3 billion is the goal. Markets certainly thought change was needed, Vodafone's shares down almost 40% since January. Reuters' Paul Sandle in London follows the company.
Vodafone is under a lot of pressure in various markets, particularly Italy has been tough, a new entrant there. Spain's been tough, and it had spent a lot on new spectrum for 5G services and it's doing a big deal in Germany, buying Liberty Global, so that's putting more pressure on the balance sheet.
>> 5G the key term there. All phone firms excited by the next generation of mobile service after 4G. It should be hyper fast, allowing near instant downloads of a feature length film. This is some of the necessary infrastructure being setup in Monaco. It aims to be the first place in the world to offer 5G service.
The first handset's going on sale next year. Just one problem.>> 5G is a big opportunity for all the telcos, but they've gotta find some way to monetize that. That's not really apparent yet.>> This is one possibility. Virtual reality mobile gaming could soon be big. 5G data should make it seamless.
Meanwhile, there's no immediate crisis for the world's second biggest mobile phone operator. Numbers out Tuesday put adjusted earnings in line with forecasts, about $8 billion for the first half of the year. Future profits may depend on figuring out how to turn 5G into a big money spinner.