Podcast - 4th September 2013
We're back after a short break last week - and just in time for three of the biggest industry news stories of the year.
Microsoft's CEO announces his retirement, then Vodafone sells its US operation for $130 billion... and now Nokia's mobile phone business is being bought. Alongside these reports there's also time to talk about 4G in the UK, children with mobiles, roaming charges and the future of smartphones.
Verizon Communications has agreed to buy Vodafone’s share of its US mobile phone business for $130 billion.
The deal will involve Verizon acquiring Vodafone’s US business - which owns 45% of Verizon Wireless - for $58.9 billion cash and most of the remainder in stock. As a result, Verizon will gain complete ownership of the wireless business that bears its name.
Breaking up is profitable to do
Mark Bridge writes:
So – we take a short break at the end of the August ‘silly season’ and one of the year’s biggest mobile-related rumours becomes fact. At least we’re back in time to report on the final stages of the Vodafone/Verizon deal. Yes, it looks as though Big Red will be picking up something like $130 billion for its 45% stake in Verizon Communications… possibly within the next few hours. Just don’t mention the tax, okay?
Vodafone has confirmed it’s considering the sale of its stake in US-based Verizon Wireless.
Verizon Communications currently owns 55% of the joint venture, with Vodafone owning 45%.
Tony Blinard of Keys2iPhone.com writes:
Not too long ago, iPhone enthusiasts rallied the White House with an online petition to legalize out-of-contract iPhone unlocking. The Obama administration cast its support that generated only a lukewarm response from the industry. Not surprising: the top three U.S. wireless carriers - Verizon, AT&T and Sprint - have relied on contracts to sell cell phones for over a decade. With Apple's introduction of iPhone - the most expensive smartphone in history - the carriers could then generate lucrative profit margins on each and every phone sold under contract. And to make sure the customers wouldn't 'jump ship', the carriers locked in all subsidized iPhones.