AWE bidding: Vodafone mum, NTT moving

Vodafone announced strong fiscal third quarter growth in new subscribers Wednesday, while Arun Sarin, CEO of the global mobile giant, dodged questions about the possibility that the company will bid for AT&T Wireless.

The U.K.-based carrier, which will report 2003 yearly financial results this May, said it gained 4.3 million customers around the world during its fiscal third quarter, and now has 130.4 million subscribers globally, giving it the largest customer base of any single mobile carrier in the world. The third quarter number beat nearly all analyst estimates. Sarin didn’t confirm reports that Vodafone, which owns 45% of Verizon Wireless, was considering a bid for AT&T Wireless, but he also didn’t rule out entering the auction for the third-largest U.S. carrier.

"As you know, we have an interest in the U.S. market through our investment in Verizon Wireless," Sarin said on a conference call. "But, we are watching the developments in the U.S. very carefully. We clearly are interested in investing in new markets if we can secure customers in a value-creating manner, whether in the U.K. or elsewhere."

Asked if he was confident that Vodafone’s dividends from its investment in Verizon Wireless would renew as scheduled in March 2005, Sarin said. "Whether the dividends will continue I cannot say for sure, but we are talk to our partners about the dividends and what happens after March 2005."

Meanwhile, a source told Telephony that NTT DoCoMo, which owns about 17% of the company, was maneuvering behind the scenes to get into position to make a bid to counter Cingular Wireless reported offer to acquire AT&T Wireless at a price of between $10 to $11 per share.

The source said NTT DoCoMo waived its right as an equity holder to be informed of bidders for AT&T and the amounts of their bids. "They are trying to avoid the obvious conflict of interest that would arise [if NTT DoCoMo chooses to attempt to acquire all of AT&T Wireless], which they would only do if they’re serious about bidding, and quite soon" the source said.

According to other published reports, AT&T Wireless and its financial advisors have set a deadline of Feb. 13 for carriers to submit their offers to acquire the company.