Vodafone Group Plc (ADR) (VOD) and BT Group plc (ADR) (BT) Win 4G Mobile Spectrum Bids

Elsewhere, Everything Everywhere paid 589 million pounds for 2 x 5 MHz of 800  MHz and 2 x 35MHz of 2.6 GHz, Telefonica U.K. paid 550 million pounds for 2 x 10 MHz of 800 MHz, and Hutchison 3G U.K. paid 225 million pounds for 2 x 5 MHz of 800 MHz. MLL Telecom and HKT Company were unsuccessful bidders. All proceeds from the auction will go to HM Government.

BT’s shares rose 1.2%, 3.24 pence, to reach a five-year high of 280.14 pence in early trade, while Vodafone’s dropped 0.2% to 163.20 pence — although this is likely a continued knock-on effect from many analysts’ downgrades in recent days following speculation that it is considering an expensive takeover of Kabel Deutschland.

BT trades on a forecast yield of 3.4%, while Vodafone currently offers a 5.8% income. However, with well-respected City analyst Neil Woodford selling his entire holding of Vodafone from the Invesco Perpetual High Income fund that he manages, are shares in this sector reliable to hold for the long term?

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The article Vodafone and BT Win 4G Mobile Spectrum Bids originally appeared on Fool.com and is written by Sam Robson.

Sam Robson owns shares of Vodafone. The Motley Fool recommends Vodafone. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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