Vodafone in an announcement said that it need not sell its stake in its venture with Verizon Wireless in order to be competitive in Europe. Vodafone has a standing venture agreement with the US mobile carrier.

According to CEO Vittorio Colao, "The two things are not totally linked. If it is right to make some investments, we will make some investments." He added that a healthy balance sheet for the UK based mobile operator would help expand its operations without need for additional financing or acquisitions.

While these are bold statements, the reality is that the European market revenues have been steadily falling because of economic pressure and increased competition from other carriers. The statements come after many analysts have been calling out the British carrier to divest its 45 percent stake in Verizon to be able to fund the purchase of assets that can enhance its product capabilities in the long term.