That was the first thought that hit me when I saw several articles like the one (at https://www.theguardian.com/business/2024/jan/25/emirates-backed-stake-vodafone-security-risk-uae-uk-government) where we are given ‘UK says Emirates-backed stake in Vodafone poses national security risk’ and my first thought was ‘What?’ Now, lets be clear, I have no idea how true the statement is, for the longest time I saw Vodafail as a joke (I was a victim of their not so nice side a decade ago). Vodafone is almost everywhere (EU, UK, Australia) so why is the UK the only one crying foul?
The article gives us “The Cabinet Office issued a notice late on Wednesday warning that the 14.6% stake held in Vodafone by Emirates Telecoms, amounted to a security concern given Vodafone’s strategic role in the UK’s telecommunications services.” Now, I don’t see the danger, but that might clearly be me. This is not my cup of tea. But all these companies whoring for dollars and investors have been playing on every field and now it is an issue? How about the board of Vodafone not whoring for investors? And why is the less than 15% a security risk? Then we are given “That move triggered the government to look into the deal under the National Security and Investment Act 2021, owing to Vodafone’s importance as strategic supplier of the UK government and being involved in the country’s cybersecurity infrastructure. However, the government had not previously made any public announcements saying it was looking into the partnership.” Now, as I personally see it, that act is 3 years old. At the moment of creation, why was there not a clear message that anyone involved in investing in infrastructure is prohibited in ‘courting’ investors? There is a clear case that if this is indeed stamped a security risk, there is a chance that the UAE can reclaim investment plus 50% damage bonus and Vodafail better cough up that dough (obviously they will charge the UK government for that).
My question becomes ‘What is the real fear?’
In sight of “Under the terms of the strategic partnership, Emirates Telecom can increase its stake to just under 25%, while also having the opportunity to add another executive to the board if its ownership tops 20%.” I merely wonder what the danger (if any) there is. I honestly don’t know. You see Vodafone is in 16 countries and is stated to have over 160 million customers. If I had the money I might consider that and there has been several messages over the last 2 years that Vodafone cleaned up their act and services. There are several deals, mergers and investigations in place that give rise to the simple fact that certain people are placing their chess pieces (corporations) and they are (my speculation) in a stage that they do not want the UAE to be part of any of this. There is of course another option for the UAE. They could start to collect other telecom corporations and chisel the Vodafone slice down to a manageable size. I personally would start by grabbing places that give access to Germany and France, Vodafone has too much power there (and in some places too shoddy reception) and form there grow the market. France and Germany when properly grown would give access to Belgium, the Netherlands, Switzerland and Austria. From there Germany allows growth towards Poland and Czech Republic. It is a much slower path, but I reckon that these loud mouthed politicians will run for cover when Vodafone suddenly is worth 25%-35% less. Let’s be clear, I have no idea how there is a security risk ad we aren’t given that in any clear way, but as I personally see it “a security concern given Vodafone’s strategic role in the UK’s telecommunications services” if that was really true, why was Vodafone allowed to start partnerships? Is it to attract American dollars alone? I have no idea but the UAE and the KSA are the only ones with a credit card that is not maxed out at present.
I am not telling you this is wrong, I cannot tell. I am asking what is the real fear? Because that is the larger issue in this instance. Just my €0.02 on the matter.
Enjoy Friday that is about to start for most of you and it is gone for 71% for me at the moment, but Saturday is just behind it.
Lawrence van Rijn - Law Lord to be 