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.
The latest version of the Isis mobile wallet service has been launched across the US, following 18 months of testing in Texas and Utah by AT&T, T-Mobile USA and Verizon Wireless.
US operator AT&T is to sell approximately 600 of its wireless towers to independent infrastructure management firm Crown Castle, and lease the rights to another 9,100 towers, for a combined up-front payment of $4.85bn. AT&T will lease capacity back from Crown Castle, for a minimum of ten years, for $1,900 per month per site, with annual rent increases of two per cent.
On September 2, 2013, Vodafone and Verizon announced that they had reached an agreement for Vodafone to sell its 45 per cent stake in Verizon Wireless back to Verizon for $130bn. Ovum believes that the deal is good for both parties, but that the decision to return 65 per cent of the proceeds from the sale back to shareholders is short-sighted. It may make Vodafone CEO Vittorio Colao popular, but we don’t believe that he will have enough left to future proof the business.
US carrier Verizon Communications has confirmed that it is to acquire Vodafone’s US holdings, including the UK operator’s 45 per cent of Verizon Wireless for $130 billion, consisting primarily of cash and stock. The firm said that the deal had unanimous approval from both boards and will likely close in the first quarter of next year.
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.
Liberty Global shares rose sharply yesterday on speculation that Vodafone could use cash freed up by its exit from Verizon Wireless to acquire the international cable giant.
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.
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.
The US National Security Agency is collecting the call records of millions of Verizon’s customers, according to a report published by the Guardian Newspaper in the UK.
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.
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.
The seventeen largest cable and telecoms providers in the US (representing around 93% of the market) acquired 579,521 additional broadband subscribers in the third quarter of this year, according to US firm Leichtman Research Group.
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.
The US Department of Justice has given qualified approval to the US operator Verizon’s plan to purchase wireless spectrum holdings from the four largest US cable operators, Comcast, Time Warner Cable, Bright House Networks and Cox Communications. But agreements between Verizon and the cable operators to offer one another’s services must change, the DoJ said, because the plan as hatched “would have harmed competition by diminishing the companies’ incentive to compete.”
India-based network operator Tata Communications has this week launched a low latency, pure multipoint Ethernet network to connect major financial capitals in Asia, the UK and the US.
Operators in the US are preparing to launch shared data plans, allowing multiple devices owned by an individual or members of a family to draw data from a single monthly allotment. The move is one of the first examples of innovation in data pricing, as operators struggle to reap dividends from an increase in consumer data usage.
Leading US Carrier Verizon Wireless has no concerns over the proposed merger of AT&T and T-Mobile USA, as long as it does not result in increased industry regulation. The company’s CFO Fran Shammo made the revelation to a Morgan Stanley conference in Spain last week,
US carrier Verizon Wireless has announced a promotion that doubles the data allowances for its LTE subscribers. From now on, customers on the 2GB for US$30 package will receive 4GB a month, while 5GB for US$50 move to 10GB and 10GB for US$80 hits 20GB. The new allowances will be given automatically to new subscribers, while existing customers will receive it upon request from customer services.