Sep 03, 2013
By Jane Brown
Verizon isn’t coming to Canada after all.
Following all the fuss, all the predictions of doom, and all the high-priced ads produced and run by Canada’s wireless companies, the US giant says it’s no longer interested in entering the Canadian market. Company spokesman Bob Varettoni says Verizon C-E-O Lowell McAdam says, “we don’t have an interested to go into Canada. He said at this point in time, we just don’t have an interest in getting into the Canadian wireless market.”
Instead, Verizon has agreed to pay $130-billion for the 45 per cent stake in Verizon Wireless owned by British cellphone carrier Vodafone. The buyout, the second-largest acquisition deal on record, would give Vodafone PLC additional cash to pursue its expansion ambitions in Europe.
It would also give Verizon Communications Inc., the opportunity to boost its quarterly earnings, as it would no longer have to share a portion of proceeds from the nation’s No. 1 wireless carrier with Vodafone.
The deal isn’t expected to have much of an effect on Verizon consumers or on the company’s operations.
Vodafone had little influence on Verizon Wireless’ day-to-day operations, and the two companies have kept out of each other’s territory.
The Verizon-Vodafone partnership started in 2000, when what was then Bell Atlantic combined its East Coast wireless network with Vodafone’s operations on the West Coast.
(with contributions from The Associated Press)