Vodafone has confirmed it is in talks to sell its 45 per cent stake in US mobile operator Verizon Wireless.
In an interview with Sky News, Adrian Barnard, Managing Director of Modern Communications, said: "These talks have happened before and there's no certainty that Vodafone will sell its stake. If Vodafone does sell its stake we have to ask whether Vodafone can really be a global player if it's no longer in North America? Vodafone has been active in Asia which is important but the US remains the biggest mobile market and Verizon is the biggest mobile operator in that market.
"Vodafone's stake in Verizon is believed to be worth at least £65 billion. Selling its stake would free up much needed cash, especially at a time that the company is investing billions upgrading its network to deliver next generation services. Vodafone launches 4G services in the UK today, along with O2."
Dr Ronald Klingebiel, Warwick Business School Assistant Professor of Strategy, commented: "The revived discussions about Vodafone selling its 45 per cent stake in Verizon Wireless indicate an increasing focus on the European market.
"Both the US and European telecommunication markets stand to face some tough competition with the increasing move towards converged triple-play offers. To weather these impending storms, Vodafone is right to sell the stake so it can concentrate on its priority markets in Europe.
"The proceeds from the sale, if not passed on in forms of dividends, could improve its debt position following the recent Cable&Wireless and Kabel Deutschland deals, and provides Vodafone some leeway to further expand its network presence in Europe. Such moves provide the capacity and level of integration necessary for competing effectively in a future pan-European market."
To see the full interview with Adrian Barnard, click here