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Verizon May Finally End Vodafone Partnership This Year
Could Buy Some or All of Vodafone's 45% Stake in Verizon Wireless
by Karl Bode Wednesday 06-Mar-2013
Verizon and Vodafone jointly own Verizon Wireless, and for years there have been rumors as to what one side or the other plans to ultimately do to expand -- or eliminate -- that partnership. Bloomberg is the latest on the rumor scene, claiming that questions surrounding the two companies' relationship are to finally be resolved this year. Sources tell Bloomberg that the two companies discussed a full merger as recently as last December, but those talks have stumbled. The most likely outcome now is Verizon buying some or all of Vodafone's 45% stake in Verizon Wireless, estimated to be worth a cool $115 Billion.

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atuarre
Here come the drums
Premium
join:2004-02-14
College Station, TX

RE

I would rather Vodafone buy out Verizons share of the company versus the alternative
ITALIAN926

join:2003-08-16
kudos:1

Re: RE

What, you dont like the Verizon name? Or are you British

atuarre
Here come the drums
Premium
join:2004-02-14
College Station, TX

Re: RE

said by ITALIAN926:

What, you dont like the Verizon name? Or are you British

I just think they would be better running Verizon, just like I think Softbank would be much better running Sprint.
ITALIAN926

join:2003-08-16
kudos:1

Re: RE

....so not only do we have a problem outsourcing manufacturing jobs, you want to outsource entire corporations LOL

ohreally

@claranet.co.uk

Re: RE

said by ITALIAN926:

....so not only do we have a problem outsourcing manufacturing jobs, you want to outsource entire corporations LOL

There are other countries on the planet than 'Murica, you know. Perhaps a foreign influence might bring new ideas and new thinking to the table, instead of purely "how can we gouge the customer in the best possible way" as is the norm in US mobile telephony now.

(yes, I am British and live in the UK, and I don't care that Vodafone is the only one of the 4 network operators that is "British" - I pay a fraction of the cost of a similar plan in the US, I can use any phone I want on any network I want, the service is fine and there is an element of true competition)

CylonRed
Premium,MVM
join:2000-07-06
Bloom County

Re: RE

quote:
I pay a fraction of the cost of a similar plan in the US, I can use any phone I want on any network I want, the service is fine and there is an element of true competition)
Vodafone will not change the above unfortunately in the US.
--
Brian

"It drops into your stomach like a Abrams's tank.... driven by Rosanne Barr..." A. Bourdain
tanzam75

join:2012-07-19

Re: RE

said by CylonRed:

Vodafone will not change the above unfortunately in the US.

Perhaps.

But I do know that the Germans own T-Mobile. And T-Mobile has been the only one of the big four carriers that's seriously pushing non-subsidized phone plans and bring-your-own-device. The US mobile telephony market is more distorted than it is anywhere else in the world. Maybe we need some furriners to bring some fresh ideas.

But this is a hypothetical discussion, anyway. If Verizon buys out Vodafone, then Vodafone still has networks in the rest of the world. If Vodafone buys out Verizon, then what's left? FiOS and a bunch of deteriorating copper. Verizon has no choice but to stick with Verizon Wireless.

CylonRed
Premium,MVM
join:2000-07-06
Bloom County

Re: RE

People are going to be less inclined to buy - at least until the phone can be used on all US carriers. Even crazier will be the fact that for most people subsidized phone = cheaper - even though most time it is not cheaper. Buying a $400-$600 dollar phone for one carrier does not make sense and psychologically - the unsubsidized just screams more expensive - even if they are not.
--
Brian

"It drops into your stomach like a Abrams's tank.... driven by Rosanne Barr..." A. Bourdain
ITALIAN926

join:2003-08-16
kudos:1
Im fairly certain that the reason to be in business, IS TO MAKE MONEY, regardless as to what continent you're on. You make it seem as though telcos in Europe are charities.

dbeatson
Premium
join:2001-02-22
Clover, SC
said by atuarre:

I just think they would be better running Verizon, just like I think Softbank would be much better running Sprint.

LOL Anyone could run Sprint better!
--
»www.w4lny.com

KevNYC
Premium
join:2002-03-31
Seattle, WA
Same here. For the record, I'm not British...but I hope that they will shake up the market in the US.
--
University of Washington - Class of 2009. Go Huskies!

Linklist
Premium
join:2002-03-03
Williamstown, NJ
kudos:5

1 edit

Verizon has $3.1 billion cash on hand

Verizon would have to borrow the vast majority of the money to buy out Vodafone's $115 billion. Unlike Apple that has many billions of $'s in cash($137 billion at year end), Verizon at end of year only had about $3.1 billion in cash on hand. Just borrowing that amount of money would have a big hit on cash flow, despite the extra income they would get from Vodafone's share each qtr.

Or maybe Verizon can finance the purchase by selling off more landline divisions.
--
Senate - get off you butts and actually create a budget that has spending cuts 3x the amount of tax increases like you promised.
openbox9
Premium
join:2004-01-26
japan
kudos:2

Re: Verizon has $3.1 billion cash on hand

It would likely be a cash (requiring debt) and equity deal, which is probably why VZ took a little bit of a hit today on an overall up day. As much as I want it to, I don't believe VZ has what it takes to take on VOD's whole stake. I'm not sure the return is worth the cost.
Sammer

join:2005-12-22
Canonsburg, PA
said by Linklist:

Or maybe Verizon can finance the purchase by selling off more landline divisions.

Who wants them? Unless Verizon is willing to sell the family jewels, first and middle mile fiber, they don't have enough assets to come up with $115 billion without heavy borrowing.

Miataman

join:2010-10-27
Chelmsford, MA
Reviews:
·Verizon FiOS

Re: Verizon has $3.1 billion cash on hand

said by Sammer:

said by Linklist:

Or maybe Verizon can finance the purchase by selling off more landline divisions.

Who wants them? Unless Verizon is willing to sell the family jewels, first and middle mile fiber, they don't have enough assets to come up with $115 billion without heavy borrowing.

tell that to the morons that were running Fairpoint and Frontier !
--
"My hat, my cane, Jeeves".

IowaCowboy
Want to go back to Iowa
Premium
join:2010-10-16
Springfield, MA
Reviews:
·Comcast
·Verizon Broadban..

They'd have the cash

They could generate cash by upgrading the rest of their markets to FiOS.

More FiOS = More paying customers which means more revenue

FiOS is highly rated where it is available. And it would be better if they'd be allowed to shut down PSTN service where FiOS has been deployed. FiOS probably had the lowest churn of any wired broadband provider.

Their current management is incompetent. Wireless Internet is supposed to supplement wireline broadband, not replace it. I have a mobile LTE hotspot, but I only use that on the go, not when I am at home.

I think the sticking point from the minds of management (which is why they're reluctant to deploy FiOS) is the union labor. If they really wanted to, they could outsource the deployment/maintenance of their wireline networks, which would mean that Verizon would still run and own the network but their linemen and installers would work for a contractor. Comcast already does this where the tech really works for East Coast Communications but he wears a Comcast T-shirt and he has a Comcast ID but it says Contractor under his name. DirecTV has hardly any in-house installers and 99.96 percent of their installs are done by Contractors.

As for cutting Vodaphone loose, I'm all for it. I would like American corporate decisions made on American soil.
--
I've experienced ImOn (when they were McLeod USA), Mediacom, Comcast, and Time Warner. They are much better than broadcast TV.

I have not and will not cut the cord.

OSUGoose

join:2007-12-27
Columbus, OH

Re: They'd have the cash

Um no, your thinking of the OLD DirecTV, they have made a move the last 3-4 years to buy out their HSP (contractors) and bring it all in house.
TBusiness

join:2012-10-26
Toledo, OH
Reviews:
·AT&T U-Verse
·MegaPath
You do realize the uptake numbers on FiOS are very low right? The former CEO didn't make the numbers he was planning on with those. They maybe gaining customers over all but not like they had hoped- the reason why FiOS has stalled expanding. It's been said over and over again, and has been proved, overbuilding does NOT work. And that is what VZ did. It would be different if they just did FTTH with Internet and phone but when bringing in TV and spending the amount of money they did building out the headends in 2 locations that took a hit without the ROI coming in. If you give someone 3 options to choose from for the same services, chances are they won't switch from who they currently have. Why? People can't make decisions, and people hate change. Especially when the change to a new company takes 8+hours to complete. But then again, you still have the crazy ones that insist on using their ISP's email address- and they'll never give up that address.

datguy11

@verizon.net

Re: They'd have the cash

Uptake low? Here in NYC they cant keep up with the amount of fios orders coming in.. They have push appointments back.. Once they light up a building they practically take the entire building over (meaning TWC gets kicked out by virtue of everyone getting fios)

People hate change, i give you that.. But people seem to hate TWC in NYC and have no problem switching from them
TBusiness

join:2012-10-26
Toledo, OH
Reviews:
·AT&T U-Verse
·MegaPath

Re: They'd have the cash

Look at the numbers VZ claimed they'd have signed up by now and look at the numbers they have. They don't match up. And NYC? Hardly anything to compare to every market. And claiming again, that everyone in the building switches has hardly any truth to it at times, as people still stay with the other company. Even if they "hate them".

IowaCowboy
Want to go back to Iowa
Premium
join:2010-10-16
Springfield, MA
Reviews:
·Comcast
·Verizon Broadban..
I personally think there should be a PSTN/DSL sunset in areas where FiOS has been deployed. Using DSL in an area where FiOS is available is like using a cassette deck when there are iPods and iTunes.

When I was a young child (late '80s, early '90s), we had cassettes and we got a CD player in 1995. In most of my adult life, I use iTunes and my iPod and eventually my iPhone and iPad as my music player and have a couple of iPods lying around. The only CD player I have in the house (besides the CD deck in my inoperable car) is the CD R/W drive in my macs/MacBook pros that are used to rip CD (that I own) into iTunes. Sometimes I buy CDs at Best Buy but only for the album covers but those are quickly ripped into iTunes. I bought the first three of the new Green Day UNO/Dos/Tre series on CD (fourth one was not released yet).

As DSL becomes more like dial-up, I think the time has come for Verizon to retire their copper network in areas where FiOS is available, just like the record labels no longer produce vinyl records or cassettes.

What I am saying is FiOS would have a greater uptake if they used the planned obsolescence model by forcing copper users onto fiber. Just like VZW shut down AMPS and may be close to shutting down CDMA and going VoLTE.

The same logic goes for record and cassette players, you might still have them but don't expect to get Justin Bieber or One Direction on vinyl or cassette.

I do use burned CDs in rental cars since there is no interface for my iPhone's music library.

--
I've experienced ImOn (when they were McLeod USA), Mediacom, Comcast, and Time Warner. They are much better than broadcast TV.

I have not and will not cut the cord.

CylonRed
Premium,MVM
join:2000-07-06
Bloom County

Re: They'd have the cash

Problem with your thought is that many folks can't afford FIOS and the companies have been getting heat for removing more affordable DSL.

Not sure that the uptake numbers for FIOS will be hugely different - those that want FIOS and can afford it are getting it, in those areas that have it.

All your solution would do is make internet service more expensive - because they will know there is one less solution for end-users.
--
Brian

"It drops into your stomach like a Abrams's tank.... driven by Rosanne Barr..." A. Bourdain

N3OGH
Yo Soy Col. "Bat" Guano
Premium
join:2003-11-11
Philly burbs
kudos:1
Really? If they plow all that money into expanding Fios, it will take them too long to realize the ROI. And that's just the break even point. It would take considerably more time for actual profits to materialize, making the notion of plowing money into Fios in order to buy out Vodafone totally moot in the time frame this notion is relevant.

As far as outsourcing the techs, I hope they don't. Sure, Verizon is using union techs, and they cost the company more. I've dealt with Comcast contractors on several occasions. Heard the horror stories. I can't say enough about the Fios techs that have been to my home over the years. Always professional top notch folks.

The notion of calling Verizon's management "incompetent" is nothing short of laughable. They posted a Q2 2012 profit of $1.8 BILLION (that's with a B, and not a typo). As you stated in your post they have one of the highest rated, lowest churn products in the market PLUS making giant canvas sacks of cash with dollar signs painted on the side. PLEASE, Flying Spaghetti Monster extend your noodly appendage down to me and bless my business with the incompetence that makes it one of the top rated providers in the business and reaps me BILLIONS in profits!

What kind of profit did the largest company you were a manger at ever post?

A lemonade stand doesn't count....
--
Petty people are disproportionally corrupted by petty power

JasonOD

@comcast.net

VZ should go for it....

Even if they have to borrow heavily to do it, money is cheap and the returns will justify it. As a wireless carrier and LTE leader, the wind will be at their backs for a very long time.

LTE revenue hasn't left the launchpad yet, and with the LTE builout almost complete, they'll be able to get a handle on CAPEX as the internet of things brings more and more sources of revenue in the comming years ahead.

UNSuser

@optonline.net

make a different move

if i'm vodafone, i sell, make sure there isn't a non-compete clause and buy t-mobile, change the name to vodafone
openbox9
Premium
join:2004-01-26
japan
kudos:2

Re: make a different move

And then compete just as well as what T-Mobile is? Irrelevant as I'm sure the purchase would forbid VOD's competition for the near term.
brianiscool

join:2000-08-16
Tampa, FL
kudos:1

Socialist

I wouldn't trust a socialist company named Vodafone.

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