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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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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
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.

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