FIRST AIRED: November 13, 2018

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00:00:00
>> 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.
00:00:23
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.
00:00:40
>> 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.
00:01:01
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.
00:01:23
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.