Verizon No Longer Going to Canada; Canadian Carriers Rally
September 3, 2013 11:28 AM
comment(s) - last by
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.
, 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.
This article is over a month old, voting and posting comments is disabled
9/4/2013 8:31:10 AM
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.
"Nowadays, security guys break the Mac every single day. Every single day, they come out with a total exploit, your machine can be taken over totally. I dare anybody to do that once a month on the Windows machine." -- Bill Gates
Quick Note: Verizon May Become Canada's Fourth Major Carrier
June 18, 2013, 2:15 PM
NPD: Online Shopping is up in 2014, But Brick & Mortar Retail is Booming Too
December 12, 2014, 9:09 AM
Amazon Joins 4K Arms Race, With Free 4K Streaming for Prime Members
December 10, 2014, 10:49 AM
Obama Tells Your Kids to Get Coding for CS Education Week
December 9, 2014, 8:01 AM
Microsoft Offers Office, Xbox, Skype Online Services Bundle for $149 -- 65% Off
December 8, 2014, 2:32 PM
Vimeo Offers 4K Uploads and Downloads, But No Streaming (Yet)
December 8, 2014, 11:55 AM
Comcast Ads "Reeducate" Public on TWC Merger's Net Neutrality "Benefits"
December 3, 2014, 6:01 PM
Most Popular Articles
Air Force Worries Hot Fuel Could Harm F-35, "Proactively" Paints Trucks Shiny
December 11, 2014, 9:06 AM
Analysis: Discovery Channel's "Eaten Alive" was a Sham, But Could Lead to Real Discoveries
December 9, 2014, 3:11 PM
LaWS (Laser) "Kills" Boat-Hauled Fuel Tanks, UAV "Bomber" in the Persian Gulf
December 12, 2014, 8:31 PM
Lamborghini Offers Up $6,000 Leather-Bound Android Smartphone
December 12, 2014, 3:12 PM
Ford Announces QNX-Powered SYNC 3, Brags It's "More Smartphone-Like"
December 11, 2014, 10:32 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information