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Verizon Wireless buyout drive is all about the dollar signs

Stephen Lawson | Aug. 30, 2013
U.S. mobile users aren't likely to see a difference if Verizon buys Vodafone's share of its mobile business.

"For U.S. consumers, there won't be any noticeable difference," said Chetan Sharma, founder and president of Chetan Sharma Consulting.

Where a Verizon-Vodafone deal could have repercussions is in Europe, because Vodafone might use the proceeds to acquire weaker mobile operators there, Sharma said.

For Vodafone, a U.K.-based company that's involved in mobile businesses on six continents, Verizon's interest in buying now may be a lifeline.

"Vodafone's core markets are in trouble as net revenue is declining," Sharma wrote in an e-mail interview. "It needs cash to shore up the assets in Western Europe."

The company is also starting to focus on combined wired and wireless plays, such as its planned $10 billion acquisition of Kabel Deutschland, Germany's biggest cable operator. The company aims to combine fixed broadband, mobile and TV on one bill, Enter said.

"What is finally motivating Vodafone is the implementation of their European integrated carrier strategy," he said.

 

 

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