Vodafone intensifies its war with BT

The UK mobile operator today announced a deal with Hong Kong-based China Mobile to work together on major projects, with Chris Gent, CEO of Vodafone, moving onto the board of the Hong Kong company.

This was only shortly after it confirmed that it was to buy AT&T's 10 per cent stake in Japan Telecom for $1.35bn - provided that AT&T can deliver the shares by the end of April. This would raise Vodafone's stake in Japan Telecom to 25 per cent, compared to BT's 20 per cent stake.

The AT&T shares are locked into a joint venture company in the Netherlands in which BT is the other partner.

Japan Telecom and Vodafone are the two largest shareholders in J-Phone, Japan's number two mobile operator with 16 per cent of the market. BT also has a 20 per cent holding in the mobile operator.