STRATEGY ANALYTICS: Integrated Services Win in Vodafone’s $130 Billion Verizon Wireless Sale
Shareholder Returns Minimize Significant Landscape Shift
BOSTON, Sept. 4, 2013 /PRNewswire/ — Verizon’s $130 billion deal for Vodafone’s 45 percent stake in Verizon Wireless will increase the focus on integrated wireline/wireless services in both the US and Europe, according to a new report from Strategy Analytics’ Wireless Operator Strategies (WOS) service. The report, “Integrated Services Focus in Verizon and Vodafone’s $130 Billion Divorce“, suggests Vodafone’s European competitors will be relieved to see there will be no acquisition spree, but will still need to focus on service execution as Vodafone uses Project Spring to re-invigorate its network and service propositions.
With a large proportion of the proceeds from the sale to be returned to shareholders, Vodafone has unveiled cautious plans to boost existing operations, with accelerated 4G LTE network deployment and growth in unified communications key targets. Similarly, Verizon will be able to deliver more integrated user experiences across wireline and wireless for a stronger multiscreen play, boosted by its financial strength in wireless.
“Vodafone has been one of the more pragmatic and conservative operators in Europe in recent years and this announcement is certainly no departure from that,” notes Phil Kendall, Director of Strategy Analytics’ Wireless Operator Strategies service. “The accelerated investment in 4G is good news, though we wait to see if there are any significant acquisitions to boost its presence in integrated services and new emerging markets, where growth prospects exceed those in the contracting European wireless market.”
Susan Welsh de Grimaldo, Director, Wireless Operators & Networks at Strategy Analytics added “In the US a more integrated approach from Verizon will put pressure on its smaller wireless competitors, who may find their low-cost strategies push them too far out of the premium wireless market. An expanded push from Verizon in multiscreen services will also force its wireline/TV rivals to rethink their limited wireless portfolios. In addition, a stronger Verizon is likely to encourage AT&T to explore international growth opportunities.”
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