Vodafone prepares to bask in the rising sun

NEWS Vodafone will buy BT's interests in Japan Telecom and the J-Phone Group for £3.7bn and the UK telco's stake in Airtel for £1.1bn (see also: http://www.silicon.com/a44144 ). A spokesperson for Vodafone said: "The deal will enhance our position in Japan and strengthen our partnership with Japan Telecom. Japan is a key market for learning lessons about 3G and it is a strong market for data services. This is an opportunity for improving operational performance and financial performance in the J-Phone Group." The move is being seen by Vodafone as a means to enhancing its wireless internet expertise in the key development market for 3G, opposite DoCoMo. However, the markets have reacted by reducing Vodafone's share price, on fears that it may be diluting its share value. The deal signals the end of BT's ambitions to be an international force to rival Vodafone. In a sign of the times, Chris Gent, CEO of Vodafone, made the initial offer to his former boss, Sir Peter Bonfield, on a mobile phone. By Nik Hole