Vodafone has launched chapter three of its corporate life – the post-Verizon Wireless years – with a blizzard of jargon: it will "leverage group synergies" and "turbo-charge differentiation".
If that sounds vague, the bill is not. Under Project Spring, the extra sums being applied to improve Vodafone's network around the world, especially in Europe, will amount to £7bn; and the investment will be made over two years, not three as previously advertised. This is extra spending on top of the £6bn or so Vodafone would invest annually anyway.
It can be done because Vodafone's balance sheet will be transformed by the $130bn (£84bn) sale of its 45% stake in Verizon Wireless, even after $84bn (£54bn) has been dispatched to shareholders. Is that a post-disposal knees-up or sensible investment?
There's a fair case for the latter since, in a world of converging and improving technologies, companies with big chequebooks ought to be able to gain a competitive edge. Besides, Vodafone has to try to arrest its weak revenues in Europe and fight the cable intruders. The half-year numbers showed an "organic" decline in group revenues of 3.2%, with northern Europe (down 3.9%) and southern Europe (off 14.9%) being the major drags.
If Vodafone is correct in thinking the European market stands on the brink of better times, now is as good a time as any to press the accelerator. And, thankfully, the 3G and 4G targets for the extra dosh are detailed more precisely than the jargon suggests.
It's just that a seven-year payback on a £7bn spending programme is hardly electrifying. In the circumstances, you can't blame some of Vodafone's shareholders for hoping AT&T will turn up with a bid. The revelation that Vodafone has deferred tax assets of £18bn may encourage the thought. But if the AT&T tale goes quiet, chapter three for Vodafone looks like it could be a long and expensive slog.
