Verizon Communications Gains Full Ownership of Verizon Wireless With $130 Billion Vodafone Deal

Discussion in 'iOS Blog Discussion' started by MacRumors, Sep 2, 2013.

  1. macrumors bot

    MacRumors

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    #1
    [​IMG]


    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.

    [​IMG]
    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:
    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
     
  2. macrumors 6502a

    Joined:
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    #2
    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.
     
  3. macrumors 6502

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    Jun 26, 2010
  4. macrumors 65816

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    Brooklyn, NY
    #4
    "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.
     
  5. macrumors 68020

    Joined:
    Mar 23, 2006
    #5
    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.
     
  6. macrumors 603

    Carlanga

    Joined:
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    PR
    #6
    So basically moving money prob in a cheaper and legal way so that vodafone can expand the 4G network over @ UK.
     
  7. macrumors 68000

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    San Fran
    #7
    Doesn't the FCC and SEC have to approve this deal?
     
  8. macrumors regular

    Joined:
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    #8
    "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.
     
  9. macrumors 6502

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  10. macrumors G4

    Chupa Chupa

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    #10
    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.

    ----------

    Nope, not even close.
     
  11. macrumors 65816

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    #11
    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.
     
  12. macrumors 6502a

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    #12
    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.

    ----------

    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.
     
  13. macrumors 68040

    acearchie

    Joined:
    Jan 15, 2006
    #13
    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!
     
  14. macrumors 6502a

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    #14
    I think perhaps the US has it slightly different to us in the UK.
     
  15. macrumors 6502a

    Joined:
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    #15
    Now they just need to come to Canada and buy Wind or someone similar and then take on the big 3 telcos here.
     
  16. macrumors 604

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    West Suburban Boston Ma
    #16
    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.
     
  17. macrumors 601

    Westside guy

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    #17
    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.:p
     
  18. macrumors 6502a

    fullauto

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    #18
    AND Australia. God knows Vodafone needs all the help they can get down under. I still experience frequent dropouts.
     
  19. macrumors regular

    Joined:
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    #19
    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.
     
  20. macrumors regular

    bigpics

    Joined:
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    #20
    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.
     
  21. macrumors 65816

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    Brooklyn, NY
    #21
    You got that right.
     
  22. macrumors 68020

    jayducharme

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    #22
    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.
     
  23. macrumors 65816

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    #23
    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).
     
  24. macrumors newbie

    Khaaaaaaaaaan

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    Location:
    Madision, WI
    #24
    So...

    ...what's it like to have $130 billion in cash & stock laying around waiting to be used? :confused:
     
  25. macrumors 68000

    Joined:
    Aug 25, 2011
    #25
    Nothing good will come of this for US consumers.
     

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