Vodafone sets US float timetable

Verizon Wireless is far from the only big telecoms flotation planned for 2001

Vodafone, the UK mobile phone giant, is to go ahead with the flotation of its US joint venture Verizon Wireless by the end of September this year.

Earlier this week, Vodafone was rumoured to be delaying the flotation for a second time due to adverse market conditions.

Many telecom companies have seen their share price fall dramatically in recent months due to concern over heavy debts and expensive new licences.

In spite of the tough times, the company has now confirmed that it is on track to meet its financial growth targets and that it expects to float Verizon in the second or third quarter of this year.

Global network

Verizon also announced that it is to spend $1bn on ambitious plans to provide a global communications service for big business customers.

The network will link the US with major cities in Europe, Asia and Latin America.

The first phase of the global network will connect New York with London, Paris, Amsterdam, Brussels, Frankfurt and Milan by the end of June.

Links already exist between New York and Tokyo, Hong Kong, Sydney and Hawaii, and these will form the base of the new global network.

Meeting targets

Verizon expects its revenue in 2001 to grow between 8-10%, in line with previous expectations.

But the firm will make cost cutting a priority, reducing its workforce by between the equivalent of 6,000 and 10,000 jobs.

The job cuts will occur through deliberately not replacing employees who leave or retire, and through eliminating overtime and contractor hires.

Verizon Wireless is the biggest mobile phone operator in the US with about 27 million subscribers.

The company is a 45:55 joint venture between Vodafone and Verizon Communications - the company formed last year from the merger of Bell Atlantic and GTE.