Lagos. November 20, 2008. Vodafone Chief Executive Vittorio Colao believes Nigeria could be an interesting market for the mobile group and that keeping its stake in Verizon Wireless in the U.S. is right for now.

According to Reuters, Colao, speaking at the Morgan Stanley annual technology, media and telecoms conference in Barcelona, said the group would be cautious about its expansion plans and focus on cash generation under its new strategy, but identified Nigeria as an attractive prospect.

"It doesn't take a very sophisticated analysis to see it is one of the very few large markets with decent GDP, a young population and the classic conditions for being interesting for Vodafone," he said.

Vodafone, the world's biggest mobile phone group by revenue, announced earlier this month that it would take control of South Africa's largest, Vodacom Group.

Vodafone said at the time the Vodacom identity would remain visible on the African continent and that it would be the exclusive investment vehicle through which Vodafone would make acquisitions in sub-Saharan Africa.

Colao also said on Wednesday the group was constantly assessing its stake in Verizon Wireless, but it currently made sense to keep hold of the asset.
Vodafone owns 45 percent of Verizon Wireless, with Verizon Communications owning the rest.

"(We have) a mandate to do whatever makes more sense for the shareholders, so we keep reviewing all the alternatives (and) we have an open mind," he said.

"The current analysis ... is that staying where we are is the best thing, and then we will do whatever we can to maximise the commercial relationship and keep reviewing our options."

Colao unveiled the group's new strategy earlier this month, saying it would focus on cutting costs and generating cash. Asked how badly Vodafone needed new spectrum, Colao said he was not desperate in most parts of the world.

"With the exception of India, where clearly we have a lot of customers and not many frequencies, in the other places ... I would say we are not starving for frequencies in a general way."

Vodafone has said it expects the Indian government to auction third-generation spectrum during the current financial year.