Vodafone confident of upper hand in Verizon fight

Vodafone is increasingly confident that the balance of power in its tempestuous relationship with Verizon Communications is shifting in the UK mobile phone group's favour. Vodafone thinks its negotiating position with Verizon Communications over the future of Verizon Wireless, the US mobile phone operator that the two groups jointly own, is getting stronger, according to people familiar with the UK company. Verizon Communications, the US telecommunications group that owns 55 per cent of Verizon Wireless, has blocked the mobile operator from making dividend payments since 2005, so that the business can pay down debt. Vodafone owns the other 45 per cent of Verizon Wireless and has been trying, so far without success, to restore the dividends. Verizon Wireless generates about 30 per cent of the UK group's earnings but contributes no cash. The lack of dividends is one reason for tension between Verizon Communications and Vodafone. Another is Verizon Communications' wish to secure full ownership of Verizon Wireless, which is the largest mobile phone operator in the US.