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Old Sep 2, 2013, 01:19 PM   #1
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Verizon Communications Gains Full Ownership of Verizon Wireless With $130 Billion Vodafone Deal




Verizon Communications and Vodafone today announced an agreement that will see Verizon gaining full control over Verizon Wireless after buying Vodafone's 45 percent stake in the company for $130 billion.

The deal, which was unanimously approved by the boards of directors of both companies, consists of both cash and stock. It will give Verizon 100 percent ownership of the company, allowing it to be "better equipped to take advantage of the changing competitive dynamics in the market." Verizon chairman and CEO Lowell McAdam had the following to say about the deal:
Quote:
"This transaction will enhance value across platforms and allow Verizon to operate more efficiently, so we can continue to focus on producing more seamless and integrated products and solutions for our customers. We believe full ownership will provide increased opportunities in the enterprise and consumer wireline markets."
For Verizon, the deal will mean that the company has full access to the wireless unit's cash, allowing it to to expand further within the United States. Reuters has noted that a major focus of this expansion will be on 4G networks. Verizon's 4G network is currently the largest in the United States and is available in over 500 markets across the country, with a potential 298 million subscribers, or 95% of the U.S. population.

Following the sell to Verizon, Vodafone plans on a 6 billion investment plan nicknamed "Project Spring", which will speed up the introduction of 4G networks in the United Kingdom, which up till now has been a relatively slow process, as well as increase investment in installing fibre optic cables, providing faster broadband services to customers. The plan will also strengthen Vodafone's retail presence in the United Kingdom and develop mobile payment services, which are currently not offered on the carrier.

The deal between the two companies is expected to close during the first quarter of 2014 and should have little impact on Verizon and Vodafone customers.

Article Link: Verizon Communications Gains Full Ownership of Verizon Wireless With $130 Billion Vodafone Deal
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Old Sep 2, 2013, 01:29 PM   #2
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Being a Verizon Communications customer for years and years, I can say I've only had good experiences.

I used their ADSL service for a long time in NYC and have switched to their FiOS service. I get about 10% above advertised speeds at all times.

I know many have had horrible experiences in the past but hopefully some of the positive business practices i've seen will follow over.
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Old Sep 2, 2013, 01:30 PM   #3
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"Value across platforms" sounds promising
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Old Sep 2, 2013, 01:35 PM   #4
dampfnudel
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"The deal between the two companies is expected to close during the first quarter of 2014 and should have little impact on Verizon and Vodafone customers."

Well, as far as Verizon customers are concerned, no beneficial impacts like cheaper, more competitive plans. T-Mobile, here I come.
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Old Sep 2, 2013, 01:41 PM   #5
Shaun, UK
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Following the sell to Verizon, Vodafone plans on a 6 billion investment plan nicknamed "Project Spring", which will speed up the introduction of 4G networks in the United Kingdom, which up till now has been a relatively slow process, as well as increase investment in installing fibre optic cables, providing faster broadband services to customers. The plan will also strengthen Vodafone's retail presence in the United Kingdom and develop mobile payment services, which are currently not offered on the carrier.
Seems like most of the UK mobile carriers are getting into fixed line broadband now. I don't see the logic myself. More and more people are ditching their fixed line connections because they don't want to pay the extortionate line rental charges when they probably use their mobile 95% of the time anyway. Surely the future is mobile broadband extended into the home. No wires, no phone line needed, no hassle. They should be spending that money on significantly increasing their bandwidth capacity to allow more and more data services.
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Old Sep 2, 2013, 01:42 PM   #6
Carlanga
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So basically moving money prob in a cheaper and legal way so that vodafone can expand the 4G network over @ UK.
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Old Sep 2, 2013, 02:18 PM   #7
cuestakid
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Doesn't the FCC and SEC have to approve this deal?
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Old Sep 2, 2013, 02:42 PM   #8
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"seamless and integrated products and solutions for our customers" - this is not currently the phrase I think of when I consider Verizon. But maybe that will change. Hopefully.
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Old Sep 2, 2013, 02:48 PM   #9
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Anticompetetive practice of monpoly
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Old Sep 2, 2013, 02:51 PM   #10
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Originally Posted by cuestakid View Post
Doesn't the FCC and SEC have to approve this deal?
Yes, FCC has to approve as a technicality but it's an automatic approval, i.e., "pro forma" because VZ already owns controlling shares of VZW.

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Anticompetetive practice of monpoly
Nope, not even close.
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Old Sep 2, 2013, 02:57 PM   #11
cameronjpu
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Originally Posted by cuestakid View Post
Doesn't the FCC and SEC have to approve this deal?
Approval should not be an issue as it will not add or subtract a player from the market, just change the ownership of that player.
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Old Sep 2, 2013, 03:13 PM   #12
Sheza
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Originally Posted by Shaun, UK View Post
Seems like most of the UK mobile carriers are getting into fixed line broadband now. I don't see the logic myself. More and more people are ditching their fixed line connections because they don't want to pay the extortionate line rental charges when they probably use their mobile 95% of the time anyway. Surely the future is mobile broadband extended into the home. No wires, no phone line needed, no hassle. They should be spending that money on significantly increasing their bandwidth capacity to allow more and more data services.
I don't see the logic in mobile carriers doing fixed broadband since there are already some great deals out there, it's pointlessly crowding the market when they could be investing more money in mobile coverage and speed upgrades.

I don't see the logic in cutting fixed broadband though. Until recently there was no 4G coverage in my area and even then it's nothing compared to the speeds I can obtain using fibre.

----------

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Originally Posted by tdtran1025 View Post
Anticompetetive practice of monpoly
It's not, Vodafone didn't have a controlling stake in it, and Vodafone do not operate in the US market, meaning there is no loss or gain of competition in the market.

People are reading this wrongly.
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Old Sep 2, 2013, 03:13 PM   #13
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Originally Posted by Shaun, UK View Post
Seems like most of the UK mobile carriers are getting into fixed line broadband now. I don't see the logic myself. More and more people are ditching their fixed line connections because they don't want to pay the extortionate line rental charges when they probably use their mobile 95% of the time anyway. Surely the future is mobile broadband extended into the home. No wires, no phone line needed, no hassle. They should be spending that money on significantly increasing their bandwidth capacity to allow more and more data services.
Well my flat is the other option. We have no landline and no line rental.

My broadband supplier installed an ethernet cable right into the wall and I have 100Meg UP/DOWN all for the same price as 8meg on AOL!
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Old Sep 2, 2013, 03:15 PM   #14
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Well my flat is the other option. We have no landline and no line rental.

My broadband supplier installed an ethernet cable right into the wall and I have 100Meg UP/DOWN all for the same price as 8meg on AOL!
I think perhaps the US has it slightly different to us in the UK.
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Old Sep 2, 2013, 03:17 PM   #15
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Thumbs up

Now they just need to come to Canada and buy Wind or someone similar and then take on the big 3 telcos here.
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Old Sep 2, 2013, 03:36 PM   #16
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Verizon will now need to raise wireless plan charges in order to pay for the purchase. Wonder if there will be a new surcharge "investment recovery fee" to help pay for it? This full ownership can't possibly help customers.
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Old Sep 2, 2013, 04:34 PM   #17
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Well, as far as Verizon customers are concerned, no beneficial impacts like cheaper, more competitive plans. T-Mobile, here I come.
I was a Verizon customer for several years. Their network's coverage of the US seems to be the best, by far - especially in rural areas. But their prices are high, and their business practices stink.

All of our phones are now on T-Mobile. When I bought an iPad Mini, though, I bought the Verizon model. 99% of the time it's simply tethered to my iPhone or on wifi - I don't maintain a Verizon account. But when I needed network connectivity in a rural part of the US, having that $20 Verizon option available was great! I think it's the best use of Verizon's network - as an emergency fallback.
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Old Sep 2, 2013, 04:38 PM   #18
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So basically moving money prob in a cheaper and legal way so that vodafone can expand the 4G network over @ UK.
AND Australia. God knows Vodafone needs all the help they can get down under. I still experience frequent dropouts.
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Old Sep 2, 2013, 05:42 PM   #19
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Originally Posted by Shaun, UK View Post
Seems like most of the UK mobile carriers are getting into fixed line broadband now. I don't see the logic myself. More and more people are ditching their fixed line connections because they don't want to pay the extortionate line rental charges when they probably use their mobile 95% of the time anyway. Surely the future is mobile broadband extended into the home. No wires, no phone line needed, no hassle. They should be spending that money on significantly increasing their bandwidth capacity to allow more and more data services.
They want to be able to offer you access to the internet/broadband not necessarily voice on landline. There is going to be a round of acquisitions in European telecoms and the next move is about being able to offer the customer triple play options all in one bill: Mobile, TV, Broadband.
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Old Sep 2, 2013, 05:49 PM   #20
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All of our phones are now on T-Mobile. When I bought an iPad Mini, though, I bought the Verizon model. 99% of the time it's simply tethered to my iPhone or on wifi - I don't maintain a Verizon account. But when I needed network connectivity in a rural part of the US, having that $20 Verizon option available was great! I think it's the best use of Verizon's network - as an emergency fallback.
Huh. Something to look into - maybe with one of the companies that sells Sprint access on the cheap for phones.

Thanks!

Meanwhile, since Verizon's old line business is horse and buggy they're fortunate to be able to fully own the growing part before the parent got too stale. The VM "subsidary" is going to be in the driver's seat here Real Soon Now.
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Old Sep 2, 2013, 05:56 PM   #21
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I think perhaps the US has it slightly different to us in the UK.
You got that right.
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Old Sep 2, 2013, 05:58 PM   #22
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None of the major telecoms seem to be much different. All of the pricing structures are similar. It reminds me of the "choice" the public is given with television services. Where I live, each community has exactly one cable provider. You either go with that one or you get a dish (or for the adventurous, an antenna). But those are the only choices. And it's the same for cell service. In my area, different telecoms seem to have advantages in different sections of the city. If you live in a Verizon-strong area, that's about your only choice if you want to use your cell phone as your primary number. Real choice is an illusion unless there's a level playing field from which to choose.
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Old Sep 2, 2013, 06:02 PM   #23
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Verizon will now need to raise wireless plan charges in order to pay for the purchase. Wonder if there will be a new surcharge "investment recovery fee" to help pay for it? This full ownership can't possibly help customers.
Time for Verizon customers to jump to T-Mobile or Sprint. Maybe if they lose enough people, they'll change their greedy ways (AT&T included).
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Old Sep 2, 2013, 06:21 PM   #24
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So...

...what's it like to have $130 billion in cash & stock laying around waiting to be used?
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Old Sep 2, 2013, 06:29 PM   #25
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Nothing good will come of this for US consumers.
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