UK Officials Suggest Vodafone Should Spin Off Sensitive Work After UAE Deal
UK officials suggest Vodafone should divest its highly sensitive operations following a significant investment by a UAE-backed company due to national security concerns. Oliver Dowden, the Deputy Prime Minister, flagged the nearly 15% acquisition by Emirates Telecommunications Group as a security risk because of Vodafone's key services to UK government departments, including those tied to national security. Dowden mentioned an agreement to mitigate security risks but did not elaborate.
Insiders indicate the focal point is Vodafone's specialized division, Vodafone Business Security Enhanced (VBSE), which handles sensitive technology for government and security agencies, is not publicly detailed, and employs staff with high security clearance. Despite no official mandate, a complete separation of VBSE might be the preferred action to safeguard its critical national security work.
VBSE, often likened to a "mini-Fort Knox," is primarily staffed in Hampshire by individuals with military or intelligence backgrounds, and is led by a former GCHQ staffer who also heads TechUK's national security committee.
Vodafone provides essential communication services for the UK government, including running mobile networks, maintaining submarine cables, and offering secure IT for military courts that sometimes involve private hearings with global reach.
The investment agreement permits Emirates Telecoms, also known as e&, to appoint an additional executive to Vodafone's board with the potential to increase its stake to nearly 25%, raising the power to significantly influence Vodafone's policy choices.
The government has directed Vodafone to form a national security committee to oversee operations impacting UK's national security. The scrutiny follows other UAE investments in the UK, including in media groups The Telegraph and The Spectator through RedBird IMI, linked to high-ranking Emirati official Sheikh Mansour.
Vodafone responded that there's no current plan or discussion to spin off VBSE, emphasizing the unit's round-the-clock, secure service to both private and public sectors in the UK.
VBSE, often likened to a "mini-Fort Knox," is primarily staffed in Hampshire by individuals with military or intelligence backgrounds, and is led by a former GCHQ staffer who also heads TechUK's national security committee.
Vodafone provides essential communication services for the UK government, including running mobile networks, maintaining submarine cables, and offering secure IT for military courts that sometimes involve private hearings with global reach.
The investment agreement permits Emirates Telecoms, also known as e&, to appoint an additional executive to Vodafone's board with the potential to increase its stake to nearly 25%, raising the power to significantly influence Vodafone's policy choices.
The government has directed Vodafone to form a national security committee to oversee operations impacting UK's national security. The scrutiny follows other UAE investments in the UK, including in media groups The Telegraph and The Spectator through RedBird IMI, linked to high-ranking Emirati official Sheikh Mansour.
Vodafone responded that there's no current plan or discussion to spin off VBSE, emphasizing the unit's round-the-clock, secure service to both private and public sectors in the UK.
