Vodafone gets FCC go-ahead to sell stake to Verizon

No-one seems to be asking what UK MVNO might do in USA instead

We’ve all known for a long time that Vodafone fully intends to sell its stake in Verizon Wireless back to Verizon itself. Today’s [4th December 2013] news is that Vodafone has confirmed that it has received the required approval from the US watchdog – the Federal Communications Commission (FCC) for Vodafone’s disposal of its US group. That entity’s principal asset is, of course, its 45 per cent stake in Verizon Wireless and the FFC says it can go to Verizon now. This does, however, leave a big question mark over what Vodafone is actually going to do about the US market? It’s a very lucrative place to play in and it would be strange for a global MNO [Mobile Network Operator] like Vodafone to just ignore it from now onwards.

Naturally, there are a few more hoops the pair have to jump through before the deal is finally clinched.

For example, the deal still remains subject to customary closing conditions, including the approval of Vodafone’s and Verizon’s shareholders.

In other words the bankers and lawyers are still going to be earning their fees until ┬áthe deal finishes – which is expected to complete in Q1 2014.

But what is Vodafone going to do after this when its millions of customers wash up in the USA?

Especially now that UK consumers on the Three UK network can now roam in the USA basically for free?

There is no point (and there always hasn’t been) in Vodafone getting involved with the likes of Sprint or a Verizon because they are using incompatible technology – cdmaOne versus GSM.

Here at GoMo Towers we reckon the best thing that Vodafone can do is buy a controlling interest in a GSM based US MNO.

Watch this space four whether our hunch proves correct or not.

That way we reckon that Vodafone could at least be able to offer its customers decent rates on making calls and the like when visiting the USA.

It’s myth that there are only a few players in the US market. All Vodafone needs to do is buy a small player and ratch that up into a major US player.

How come no other industry watchers seem to have any faith in Vodafonetaht it could easily achive such a position?

About Hans Cett

Hans Cett is an established freelance author and consultant specialising in the mobile communications industry. He also writes for Countdown2MWC - http://countdown2mwc.wordpress.com/
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