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Verizon says it has nothing to do with the Vodafone buyout

Verizon has decided not to pursue a place in the Canadian wireless market afterall, and Canada's major carriers are rallying as a result. 

According to Bloomberg, Rogers Communications Inc., BCE Inc. and Telus Corp. -- which are Canada's three major wireless carriers -- rallied after Verizon announced that it would no longer try to make its way into Canada. 

BCE shares rose 4.3 percent to C$45.03 at 9:01 a.m. on alternative exchanges in Toronto today while Telus rose 6 percent to C$34.75 and Rogers rose 3.5 percent at C$43.06 (from August 30).

Stocks had dropped back in June when Verizon said it would bid to buy Wind Mobile -- the largest of three new Ontario-based carriers. But on August 29, shares of Canada's existing wireless companies rallied in response to talks of Verizon buying out Vodafone. 

Verizon Communications announced that it was buying Vodafone's 45 percent stake in Verizon Wireless for $130 billion USD yesterday. This means that Verizon now has full control of the wireless network, which happens to be the largest in the U.S. It also has full access to the profitable network's cash load, which will be used to improve the network and fend off competitors. 

With this news rolling out, many suspected that Verizon would no longer try to make a move into Canada. However, Verizon CEO Lowell McAdam will tell you that the decision not to go into Canada has nothing to do with the Vodafone buyout.

“Verizon is not going to Canada,” said McAdam. “It has nothing to do with the Vodafone deal, it has to do with our view of what kind of value we could get for shareholders. If we thought it had great value creation we would do it.”

This was good news for BCE, Rogers and Telus, since all three together already claim 90 percent of Canadian mobile customers and can continue keeping a tight hold of the market. 

Canada has been searching for a fourth major carrier to compete with its top tier carriers for greater consumer choice and competitive prices. Other smaller companies have come along in an attempt to be the fourth, such as Public Mobile, Wind and Mobilicity. However, none of them have been as profitable as the top three.

Source: Bloomberg



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Translation...
By quiksilvr on 9/3/2013 11:52:16 AM , Rating: 1
...What's a Canada?




RE: Translation...
By Motoman on 9/3/2013 12:40:15 PM , Rating: 4
America's Hat.

Also, a country with about 35 million inhabitants, give or take. Which makes it smaller than California...

It's probably a good bet that Verizon could do better by trying to capture more of the American market, than going into Canada and having to start from scratch against 3 entrenched incumbents.


RE: Translation...
By Samus on 9/3/2013 1:08:23 PM , Rating: 2
Well, the problem is, the geography and number of potential users makes investing in Canada profitable, but not as profitable as raping Americans for over $100/month over 2 years. I only know two people with Verizon, and they both spend over $150 for 2 lines with non-premium plans (not unlimited)

Incredible ripoff. You could pay half that for virtually the same quality urban service with Sprint/T-mobile, and when you go rural, you roam on Verizon (or AT&T) anyway.


RE: Translation...
By Solandri on 9/3/2013 4:24:02 PM , Rating: 4
You don't know the Canadian cellular market. I worked there from 2007-2010. It was actually cheaper for me to add a $5 international roaming option to my US plan and pay 25 cent/min roaming, than it was for me to get a Canadian cell phone. The Canadian plans didn't become more cost-effective until I moved up past 1000 min/month.


RE: Translation...
By Captain Awesome on 9/3/2013 1:04:26 PM , Rating: 5
Canada is a large and magical land North of the wall. Filled with wildlings and the white walkers.


RE: Translation...
By FITCamaro on 9/3/2013 1:30:26 PM , Rating: 1
And only 1 road.


RE: Translation...
By Motoman on 9/3/2013 4:08:36 PM , Rating: 3
Yeah, but the speed limit is 90.


RE: Translation...
By Schadenfroh on 9/3/2013 2:08:34 PM , Rating: 2
It is where I'll one day get my future wife to give birth to my future son.

Thanks to automatic Canadian citizenship for being born on Canadian soil, my future American son will have all the rights and privileges of being Canadian (e.g. free healthcare) and could also one day renounce his US citizenship if he wants to work abroad since Canada doesn't charge non-resident citizens income tax.


RE: Translation...
By Ammohunt on 9/3/2013 2:35:27 PM , Rating: 4
Funny i read the same thing from a Mexican not long ago about America.


RE: Translation...
By inperfectdarkness on 9/4/2013 3:01:45 AM , Rating: 3
It's not just Mexico. Backdoor immigration--via offspring born on US soil--is a huge CF. There is a booming industry worldwide shipping couples to the USA temporarily so their children can be born on US soil & therefore claim US citizenship. Of course, that means that their parents can now immigrate legally too.

The system is in serious need of a reform overhaul. I miss the days when immigration was hard, but the immigrants were willing to assimilate in order to advance. You really didn't see German/Irish/Chinese flags being paraded around the streets like you do with Mexican flags.


RE: Translation...
By prophet001 on 9/4/2013 8:31:10 AM , Rating: 2
I absolutely 100% agree.

You're not an African-American, a Cuban-American, or a Mexican-American. You are either an American or you're not. That is what built this country.

Unity.


RE: Translation...
By Ammohunt on 9/4/2013 1:54:13 PM , Rating: 2
I think those days are long gone the push now is Global Citizenship and fuzzy sovereignty..yah!


RE: Translation...
By KCjoker on 9/3/2013 7:38:04 PM , Rating: 2
It's not FREE, the fact you think it is shows your ignorance and I'm glad you plan to leave the USA.


RE: Translation...
By prophet001 on 9/4/2013 8:34:30 AM , Rating: 2
I was going to make this comment but you beat me to it.


RE: Translation...
By flatrock on 9/4/2013 9:33:19 AM , Rating: 2
Free healthcare? I'm a US citizen residing in Canada but crossing the border to work in the US daily.

I get credit for all the taxes I pay in the US on my Canadian taxes but still have to pay an additional 6-7% of my income in Canadian because their taxes are higher.

The cost of living is also higher because those higher taxes trickle down into the cost of everything. Well the taxes and the fact that the minimum wage is $10 an hour, which raises the cost of everything and generally defeats the purpose of having a higher minimum wage, and usually hits low wage earners the hardest.

And while healthcare isn't billed directly to the patient, the government's efforts to constrain costs have made for very long waits for specialists and many procedures. This means that whatever is wrong with them is likely aggravated by the time they receive care and things that could be cured completely if addressed in time have lingering effects, or in the case of a good number of cancer cases it has progressed to the point where it cannot be cured before they receive treatment.

I work in the US and have US healthcare benefits for myself and my family. I carried the coverage even when at my previous job I had to pay large premiums to do so.

If one of my kids gets hurt or is very sick on a weekend, it's faster for me to drive them to the border, go through customs, go to a US emergency room and get treatment. In most cases they could get treatment and I could have them back home before they would see a doctor in the emergency room in Canada.

As for working abroad, the US does require you to file US taxes regardless of where you live or work. However you get credit for the taxes you pay abroad. If you work some place with a low cost of living, you will likely have a relatively low income and would owe little to no US taxes, and those would likely be covered by what you pay in that country. If you move to Europe you will likely be paying higher taxes there and wouldn't owe any taxes in the US. It's pretty simple to file US taxes living abroad when you don't have to figure out how to get the most deductions, because lowering your US taxes just means raising what you have to pay where you are living.


RE: Translation...
By Mint on 9/5/2013 3:43:19 AM , Rating: 2
quote:
Well the taxes and the fact that the minimum wage is $10 an hour, which raises the cost of everything and generally defeats the purpose of having a higher minimum wage, and usually hits low wage earners the hardest.
How dumb do you have to be to believe that? A $10/hr worker gets a >40% income boost over a $7/hr worker, but even if you assume 1/4 of all workers see their wages rise $3/hr via ripple effects, national income would go up by less than 2%. General prices cannot go up higher than that.

Use a little common sense. A 40% wage hike does not get self-defeated through a few percent hike in general prices.


RE: Translation...
By NellyFromMA on 9/4/2013 4:34:35 PM , Rating: 2
Honestly, I don't even understand how Verizon is the top US carrier. Their network is imcompatible with essentially the rest of the world, their phones are locked via mutual agreement from even working on actually compatible carriers (Sprint), and yet they are considered the best in the US. Frankly, I think they stifle innovation in both the wireless and wired industries in America.


"If a man really wants to make a million dollars, the best way would be to start his own religion." -- Scientology founder L. Ron. Hubbard

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