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State to Sell Vodafone Iceland Stake
(15 Jun 2009, BWCS Staff)The cash-strapped Icelandic government is rumoured to be mulling a sale of its 57.2% stake in local mobile operator Og Vodafone. The Icelandic newspaper, Morgunbladid, reported that Foroya Tele, of the Faroe Islands, is the most likely bidder for the stake. Despite carrying the Vodafone brand name, the UK-based mobile giant does not actually own any part of the Icelandic mobile venture. Instead the brand is franchised to local company Teymi.
Vodafone Iceland offers mobile, fixed-line, and ADSL/ internet services to individuals and companies. Its telecommunications branch is a franchise of the Vodafone network, formerly known as Og Vodafone and from 5 October 2006 as Vodafone Iceland. The Icelandic government became involved following the collapse of the Icelandic banking group, Landbanski which previously held the stake.
Iceland boasts some of the highest mobile phone and broadband penetration rates in the world. It has extensive ADSL and fibre-optic networks serving a population concentrated in the capital and the few other towns. The country's 450MHz spectrum has been released for digital services, providing coverage to remote communities and for offshore use. Vodafone Iceland competes in the national market with one other major player, the incumbent Síminn, while a number of smaller players have a niche presence.
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