Final answer:
Vodafone's acquisition of Air Touch shares was a strategic expansion into the U.S. market despite the initial lack of technology compatibility. This move was aligned with their goal of gaining market share and positioning themselves within a large and lucrative market, considering the vast number of global mobile users and potential future technology integration.
Step-by-step explanation:
The acquisition of a 45 percent stake in Air Touch by Vodafone was a strategic move aimed at entering the United States market, despite the lack of technology compatibility between North America and Europe. Vodafone's decision to invest despite these technological incompatibilities can be seen as a pursuit of market share and potential revenue opportunities. The telecommunications industry, as highlighted by companies such as Nokia, has vast potential due to the number of global mobile phone users, which surpasses the number of people owning bank accounts. Business expansion through acquisitions is a common strategy for companies seeking to increase their global presence and take advantage of new markets.
For Vodafone, the possibility for future technology convergence and the chance to establish a foothold in the large U.S. market likely outweighed the immediate technological challenges. It is also essential to consider the historical context where regulatory bodies such as the FCC and the Justice Department have in the past shown a willingness to block anti-competitive mergers, indicating that such acquisitions may also be seen as a medium to ensure competitiveness within the telecom sector.