There’s nothing like easing back into work after your summer holidays, is there? Whatever plans the Informer had for a gentle return were shattered by two of the biggest M&A announcements we’ve seen for some time. Neither depended on the element of surprise for their impact, though, as both had been much anticipated.
US operator Verizon has announced plans to acquire content delivery network provider EdgeCast. The boards of directors of both firms have approved the acquisition and hope to finalise the deal early 2014. The value of the deal was not disclosed.
US operator Verizon has announced an 8.4 per cent year on year increase in service revenues to its wireless business for 3Q13, generating $17.5bn for the quarter and a 33.8 per cent operating income margin. Total revenues for the firm were $20.4 billion in third-quarter 2013, up 7.2 per cent year on year.
Recent merger and acquisition activity has illustrated how Europe’s telecoms sector is becoming weaker, according to top executives at operator trade association the GSMA. Speaking at the GSMA’s Mobile 360 event in Brussels, chairman Franco Bernabè, who is also CEO at Telecom Italia, said that deals such as Vodafone’s sale of its Verizon stake and Microsoft’s acquisition of Nokia suggests that Europe is no longer a leading region in the telecoms sector.
Vodafone put a price on the sale of its 45 per cent share in Verizon Wireless to Verizon in another short statement on Sunday, sizing the deal at $130bn (£83.4bn) in cash and common Verizon stock. While the firm described the talks as “advanced”, and despite reports on Sunday and Monday that the deal is all but done, a formal announcement has yet to be made.
Vodafone has confirmed that it is discussing the potential sale of its 45 per cent stake in US operator Verizon Wireless to JV partner Verizon Communications. Verizon’s desire to assume full control of the largest mobile operator in the US is well known and the deal has been the subject of speculation for the better part of a decade.
Russian operator VimpelCom has poached the CFO of Verizon Wireless, Andrew Davies, and will install him as group CFO in January 2014.
US carrier AT&T has agreed to acquire the assets of a regional mobile network operator, while rival Verizon Communications is facing opposition amid rumours that it could acquire spectrum in Canada.
This week US operator Verizon reported a net profit of $1.95bn for the first quarter of 2013, a 16 per cent year on year increase compared with the $1.69bn generated in 1Q12. The firm’s first-quarter revenues hit $29.4bn, marking a 4.2 per cent increase on 1Q12.
The US Department of Justice’s (DoJ) Antitrust Division has called on telecoms regulator the Federal Communications Commission (FCC) to more aggressively regulate the amount of spectrum that the country’s larger operators are able to own.
US operator Verizon is seeking operators around the world to act as LTE roaming partners, the firm told Telecoms.com. At Mobile World Congress 2013, Greg Dial, director for global roaming at Verizon Wireless, explained that his brief for the show was to identify potential roaming partners in popular overseas markets.
Customers in the US are more satisfied with data sharing service plans than more traditional data plans, according to a study by J.D. Power and Associates. The marketing information services firm’s semi-annual report on customer services in the US operator market found that overall satisfaction among customers who currently subscribe to a mobile share data plan is 778 out of 1,000, compared with 750 among those who subscribe to a more traditional service and data plan.
US operator AT&T has entered into an agreement with rival Verizon Wireless to acquire 700MHz spectrum licenses for $1.9bn in cash plus AWS licences in several states. The 700MHz licenses cover 42 million people in 18 US states including California, Florida, New York, Texas and Washington.
Half of the data traffic on US carrier Verizon Wireless is now carried on its LTE network, its CEO announced last week at CES, marking a significant increase on its October 2012 watermark, when just 35 per cent of its data traffic was LTE.
While still in their nascent stages in densely populated areas across Europe, LTE services are now being deployed in remote areas in the US, such as rural Texas and Alaska. Regional carrier Cellular One has entered into an agreement with Verizon Wireless to participate in its LTE in Rural America program. Meanwhile, Alaska Communications announced that it has also introduced LTE services to customers throughout Alaska’s urban areas.
Kentucky based Bluegrass Cellular has announced the launch of a 4G LTE network, a development that comes out of its 2010 agreement with Verizon as part of the latter’s Wireless LTE in Rural America program.
In a market where spectrum is becoming an increasingly valuable asset, US carrier Verizon Wireless has secured approval for its purchase of 122 AWS spectrum licences from cable companies Comcast, Time Warner Cable and Bright House Networks for $3.6bn. It will also complete transactions with Leap Wireless, Savary Island Wireless and T-Mobile, after the US Federal Communications Commission (FCC), approved the deals.
The US Federal Communications Commission (FCC) has ruled that Verizon Wireless must stop charging its customers on tiered data tariffs an additional fee for using their LTE smartphones and tablets for tethering.
It’s quarterly results time again, with Vodafone, Verizon, Microsoft and Google reporting varying degrees of success for the quarter ended June 30.
Operator group Vodafone reported almost flat revenues for the quarter, climbing by just one per cent, to reach £10.8bn ($17bn).
As operators in mature markets take steps to move away from low margin or loss making all-you-can-eat data pricing models,US carriers are pioneering a model that enables families to draw data for each member’s personal device from a single monthly allocation. AT&T this week became the latest carrier to introduce the play.