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Verizon, AT&T May Buy Vodafone Together
In Giant International Deal Worth $245 Billion
by Karl Bode Tuesday 02-Apr-2013 tags: competition · business · wireless · world · consumers · wireless
For some time now rumors have suggested that Verizon was trying to buy out UK wireless carrier Vodafone's 45% stake in Verizon Wireless after talks of a full merger stalled last December. In an interestering twist, anonymous sources tell the Financial Times that Verizon is now working in conjunction with AT&T to buy Vodafone outright. According to the report, Vodafone's current value in the deal would be expected to be around $245 billion. While Verizon likely just wants full ownsership of their U.S. assets (valued at around $135 billion), AT&T -- always a lover of acquisitions -- may be considering a broader international expansion.

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n2jtx

join:2001-01-13
Glen Head, NY

One Phone Company?

Gee, could this ultimately result in a Verizon/AT&T merger? Perhaps they could call the new company "Ma Bell".
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FFJOHNL312
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join:2007-12-16
Pawtucket, RI

Re: One Phone Company?

Back when they were asking us for suggestions about what the Bell Atlantic/GTE company name should be, I suggested Standard Oil.

Nobody laughed.
openbox9
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We could always bring back the universal service and regulated rates. A couple of benefits that many seem to pine for.

KrK
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1 edit

Re: One Phone Company?

said by openbox9:

We could always bring back the universal service and regulated rates. A couple of benefits that many seem to pine for.

Would be a complete disaster, because the regulated owns the regulators, so it would basically be a completely unrestricted monopoly, which, it really isn't that far away from us anyway.
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"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
openbox9
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Re: One Phone Company?

said by KrK:

because the regulated owns the regulators

The similar can be said during the Ma Bell days as well.

KrK
Heavy Artillery For The Little Guy
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Re: One Phone Company?

Except back then they didn't own the Government wholesale, so regulators DID break up their monopoly. Would never happen now.
openbox9
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Re: One Phone Company?

Oh, ok I think you're misguided if you don't believe big money had politicians in their pockets during the 80s. It's been like that for a very long time, it's just recently that it's become overtly noticeable to the layperson.

KrK
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Re: One Phone Company?

It's far worse now. The FCC is practically the industry's handmaiden, and regulators like the FTC and Justice Department are on short chains. Most of the regulators are actually former employees and lobbyists of the industries they are supposed to regulate. Local PUC's and Corporation commissions have been neutered. A single, "regulated" monopoly would be basically be a single, all powerful un-regulated monopoly in today's political climate.

The Oligopoly we have now isn't much better. Provides the illusion of competition.
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"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
LTE4LIFE

join:2013-02-28

Cable Ad for Wireless..

So funny, you'll laugh til it hurts..

»www.youtube.com/watch?v=0ilMx7k7mso

woody7
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Torrance, CA

Re: Cable Ad for Wireless..

This should be on TVeee, oh that will never happen , LMFAO!!
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BlooMe
SunnyD

join:2009-03-20
Madison, AL

Yeah, this will go over well.

It will benefit the consumers, I'm sure.

tiger72
SexaT duorP
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Saint Louis, MO
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Re: Yeah, this will go over well.

Frankly, i'm not convinced on how it benefits Verizon or ATT shareholders either.

The European market simply isn't particularly attractive. Price competition is fierce. The barriers to entry for competitors are lower. Government regulation of carriers is much higher. Consolidation may be even more difficult.

That said, I can see growth potential seems high in former soviet bloc countries. But high enough to buy out Vodafon? I don't think so.

Domestically, by the way, I think it leads to bad publicity too. People think VZ/ATT are a duopoly now. Seems like buddying up and buying a company together would only make it easier for Sprint and T-Mobile to push Congress on regulating ATT and VZW domestic ventures even further.
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"What makes us omniscient? Have we a record of omniscience? ...If we can't persuade nations with comparable values of the merit of our cause, we'd better reexamine our reasoning."
-United States Secretary of Defense (1961-1968) Robert S. McNamara

KrK
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Re: Yeah, this will go over well.

said by tiger72:

Frankly, i'm not convinced on how it benefits Verizon or ATT shareholders either.

The European market simply isn't particularly attractive.

Vodafone owns systems and services in 30+ countries including up and coming markets in the third world. That, plus the elimination of competition globally makes this deal seem much better.

The mere fact that such a possibility exists verifies that we are being bent over for way, WAY, WAY too much money in the USA to make such a huge buyout financially possible for our esteemed "Telecommunication Providers."
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"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
openbox9
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Re: Yeah, this will go over well.

said by KrK:

The mere fact that such a possibility exists verifies that we are being bent over for way, WAY, WAY too much money in the USA to make such a huge buyout financially possible for our esteemed "Telecommunication Providers."

A large portion of this potential acquisition (if it happens, which I still doubt) would be financed somehow. No matter the acquirer(s), it won't be a cash deal so I'm curious how this "verifies" anything about the prices we pay in the US for service.

KrK
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Re: Yeah, this will go over well.

It wouldn't be possible to finance such a deal unless huge revenues needed to repay such a large debt were virtually assured. The investors know they are, because of the sorry state of competition in the US market and how profitable these players are.
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"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
openbox9
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Re: Yeah, this will go over well.

Cashflow isn't the only variable used to calculate risk. Of course VZ generates a lot of revenue (north of $30B), but that hardly "verifies" that consumers in the US are overpaying for their services. Neither does solely comparing service costs in the US to service costs in other countries, but we try to do that all of the time too.

Faster
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join:2013-03-09
Absolutely! The price of phones will go down. Their technology and features will improve as well the performance of the national and international networks!

How could anyone expect anything else.

anonphoneuse

@comcast.net

WOW!!

so at&t would own a big chunk of verizon as a result.

talk about lack of competition.

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

Re: WOW!!

said by anonphoneuse :

so at&t would own a big chunk of verizon as a result.

talk about lack of competition.

No. AT&T would own Vodafone providers in the EU and elsewhere. Verizon would get the part of Verizon Wireless Vodafone owns in US.

AT&T would own no part of Verizon, and Verizon would own no part of AT&T. In other words they would split Vodafone in half.

SteelerRaw

@timet.com
said by anonphoneuse :

so at&t would own a big chunk of verizon as a result.

No, I don't believe that's what the result would be. It's looking like Verizion would get Vodafone's portion or Verizon Wireless while AT&T would get Vodafone's assets outside of the United States.

Dr Demento
I Vant Blud

join:2002-01-02
Denville, NJ

4 edits

Fun for EU and it's Anglophobes

I'm sure Brussels would have a ball over this considering how the European Court handled Intel. Unlike our liberal stateside regulators, those Euro counterparts don't fine in chump change. Like the fortune after posting this stated, "The bigger (wealthier) they are, the harder they hit."

Do these acquisition hungry, Randian chest thumping, hedgefund humping, government pandering yet customer stealing cronies have any perception of reality anymore; besides what spin doctoring may remotely fool shareholders into a buying frenzy or mass selling?

Linklist
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Williamstown, NJ
kudos:5

Non-subscriber link to story details

Link on story at Financial Times for subscribers only. Here is a link anyone can read:
»news.cnet.com/8301-1035_3-575774···-report/
rizzo2dial
Premium
join:2004-08-05

Re: Non-subscriber link to story details

The FT story is accessible when clicked on through Google (as Google pays various newspapers/publishers for their content). Try the first search result returned here:

»www.google.com/search?btnG=1&pws···3Aft.com
tmc8080

join:2004-04-24
Brooklyn, NY
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WORLD BELL

If you didn't like Ma Bell back in the day.. just get a load of what a WORLD BELL would do for rates and global control of tier-1 internet & telecom services the world over.

»www.youtube.com/watch?v=NHWjlCaIrQo
Crookshanks

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Re: WORLD BELL

Tier-1 providers aren't nearly as critical as they used to be with the rise of CDNs. Even my regional ISP has peering agreements enough with CDNs that I rarely see traffic pass out to Level 3 (their Tier-1 provider). About the only traffic I've tracerouted out to Level 3 is traffic going overseas.
tmc8080

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Re: WORLD BELL

said by Crookshanks:

Tier-1 providers aren't nearly as critical as they used to be with the rise of CDNs. Even my regional ISP has peering agreements enough with CDNs that I rarely see traffic pass out to Level 3 (their Tier-1 provider). About the only traffic I've tracerouted out to Level 3 is traffic going overseas.

You should read the thread more carefully.. this is ALL about monopolizing tier-1 internet & global telecom throughout Europe... basically controlling that & the US market is 2/3 of the internet.. Cable affiliated tier-1's are pitiful compared to the holdings of the main fiber optic trunks that run EVERYWHERE.

How many underseas fiber optic links are owned by cable companies vs telcos? Not many.

Apparently it wasn't enough to get mediocre censorship of the US internet.. now there are forces that want the global internet under the same control. Before two NYC skyscrapers fell to the ground these kinds of things would never be possible. Now? The sky(net) is no longer the limit.
openbox9
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Re: WORLD BELL

Sometimes your posts are further out in left field than others. How does this deal (which likely isn't going to happen anyway) monopolize the tier-1 network?
said by tmc8080:

How many underseas fiber optic links are owned by cable companies vs telcos? Not many.

Carrier consortiums finance ~75% of submarine fiber systems.
said by tmc8080:

Apparently it wasn't enough to get mediocre censorship of the US internet.. now there are forces that want the global internet under the same control.

What?
guppy_fish
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join:2003-12-09
Lakeland, FL
kudos:1

Buy on the low

Europe is in the gutter financially, its the perfect time to buy. It also is an advantage for both ATT and Verizon as they get to make all the decisions of price and whom gets what.

This is one rumor that makes sense ..
BiggA

join:2005-11-23
EARTH

HUH?

Wouldn't this mean AT&T would own part of Verizon? That's just awkward...
openbox9
Premium
join:2004-01-26
japan
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Re: HUH?

No, the idea is to chop VOD into pieces with VZ and T each acquiring their desired portions. I don't see it happening, so I wouldn't worry about it too much.
kevinds

join:2003-05-01
Calgary, AB

Roaming

What happens to roaming and long-distance rates if USA-Verizon and USA-AT&T have cellular service in Europe?
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KrK
Heavy Artillery For The Little Guy
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Tulsa, OK
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Good news: Verizon denies it... however...

Verizon denies a partnership with at&t to buy out Vodaphone:

»www.usatoday.com/story/money/bus···2047793/

However, it could also be this is merely a PR release to try and stymie Vodafone's stock price rise, which is rocketing up on the news.

If this is an unsubstianated rumour, then look for stock speculators who made big moves into Vodafone stock recently and you'll probably have the parties responsible....
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

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