By Editor on May 23, 2012 · Leave a Comment
Telecom operator Vodafone Group Plc will have to rely on its U.S. wireless venture to meet profit estimates and cover up declining sales in the European markets, largely Spain and Italy, according to a report by BN.
Vodafone said that operating profit excluding some items may rise as much as 3.2 percent in the 12 months ending March 2013. Profit on that basis slipped 2.4 percent last year to $18 billion after the sale of a stake in its SFR French unit. Verizon Wireless, the largest U.S. mobile carrier, accounted for 42 percent of the total, an increase of 9.3 percent.
As per the report, Vodafone, which relies on western Europe for most of its revenue, is no longer the world’s biggest mobile-phone company as China Mobile Ltd. boosted sales last year to $81.7 billion. While profits and sales at Verizon Wireless are rising, Newbury, England-based Vodafone still needs to negotiate dividends every year with U.S. partner Verizon Communications Inc. (VZ), which controls 55 percent of the venture.
Filed under America, Europe, Italy, Mobile, Mobile Financial Results, Spain, USA ·
Tagged with China Mobile Ltd, Europe, European markets, Italy, Profit, SFR French unit, Spain, UK, USA, Verizon, Verizon Communications Inc, Verizon Wireless, Vodafone, vodafone group plc
By Editor on March 7, 2011 · Leave a Comment
Verizon Communications Inc. today announced the election of Lowell C. McAdam, Verizon president and chief operating officer, to the Verizon Board of Directors, effective immediately.
This is another important step in the succession process at Verizon,†said Ivan Seidenberg, Verizon chairman and CEO, who has previously announced that he will retire later this year. Following the board’s appointment of Lowell as president and COO last fall, we have been working to prepare Verizon’s leadership transition, and Lowell has provided outstanding leadership in running the day-to-day operations of the business.â€
The addition of McAdam brings Verizon’s total board membership to 14.
As president and COO since Oct. 1, 2010, McAdam, 56, has been responsible for the operations of the company’s network-based businesses — Verizon Wireless and Verizon Telecom and Business — as well as Verizon Services Operations. He is also responsible for the technology management and CIO functions.
In addition, McAdam is chairman of the Verizon Wireless Board of Representatives.
McAdam held key executive positions at Verizon Wireless since its inception in 2000 and helped build the company into the industry’s leading wireless provider, with the nation’s largest, most reliable wireless voice and 3G broadband data network. He became president and CEO of Verizon Wireless in 2007, and before that served as the company’s executive vice president and chief operating officer.
Earlier, McAdam was president and CEO of PrimeCo Personal Communications, a joint venture owned by Bell Atlantic and Vodafone AirTouch. He also served as PrimeCo’s chief operating officer, responsible for overseeing the build, deployment and successful launch of the new company’s customer service operations and all-digital network.
McAdam has also served as vice president-international operations for AirTouch Communications and was lead technical partner for cellular ventures in Spain, Portugal, Sweden, Italy, Korea and Japan.
McAdam is a director of the National Academy Foundation, a partnership between business leaders and educators that assists high schools across the country.
He earned a bachelor’s degree in engineering from Cornell University and a master’s degree in business administration from the University of San Diego. He also spent six years in the U.S. Navy’s Engineer Corps and is a licensed professional engineer.
Verizon Communications Inc. (NYSE, NASDAQ:VZ), headquartered in New York, is a global leader in delivering broadband and other wireless and wireline communications services to mass market, business, government and wholesale customers. Verizon Wireless operates America’s most reliable wireless network, serving 94.1 million customers nationwide. Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and delivers innovative, seamless business solutions to customers around the world. A Dow 30 company, Verizon employs a diverse workforce of more than 194,000 and last year generated consolidated revenues of $106.6 billion. For more information, visit www.verizon.com.
Filed under Mobile ·
Tagged with 3G, Bell Atlantic, Chief Operating Officer, CIO, COO, Italy, Japan, Korea, Lowell C. McAdam, Mobile, National Academy Foundation, Portugal, Spain, Sweden, technology management, Verizon Board of Directors, Verizon Communications Inc, Verizon president, Vodafone AirTouch
By Editor on February 28, 2011 · Leave a Comment
Motorola Mobility Holdings has filed a patent lawsuit against TV recording outfit TiVo, claiming that it owns the rights to the digital-video recording technology used in the company’s ‘time warp’ devices.
According to reports, the complaint claims that Alviso-based TiVo has infringed on multiple patents related to DVRs, including some that were developed in the mid-1990s — more than two years before TiVo was founded — by a group of engineers whose company was later purchased by a Motorola subsidiary.
As per reports, Motorola’s suit also referenced ongoing legal action TiVo filed in 2009 against Verizon Communications Inc. offered over DVR services through Motorola set-top boxes.
Motorola is seeking to have TiVo’s patents declared invalid and also an affirmation that Motorola set-top boxes do not violate TiVo’s patents.
Filed under Mobile ·
Tagged with digital-video recording, DVRs, Mobile, Motorola, Motorola Mobility Holdings, patent lawsuit, set-top boxes, time warp, Tivo, TV recording outfit, Verizon Communications Inc
By Editor on February 21, 2011 · Leave a Comment
Motorola Mobility Holdings Inc.’s sales to Verizon Wireless grew to 28% of revenue last year, highlighting the carrier’s importance to the mobile-phone maker as Verizon begins selling Apple Inc.’s rival iPhone.
According to the company, Motorola’s revenue from Verizon Wireless and parent Verizon Communications Inc. increased from 17% in 2009 and 13% in 2008. Sprint Nextel Corp. accounted for 13% and 7% of revenue in those two years.
As per the company, the loss or a significant reduction in revenue from one or more of these customers could have a negative impact on their business.
According to Motorola CEO, Sanjay Jha’s previous statement, Verizon Wireless began selling the iPhone this month, ending AT&T Inc.’s exclusive hold on the device in the U.S. The iPhone had already triggered some slowdown.
Jha is relying on the growing popularity of Google Inc.’s Android mobile-phone platform to sell more models of its phones at Verizon Wireless, AT&T and Sprint.
Filed under Mobile ·
Tagged with Apple Inc, AT&T Inc, Google Inc, iPhone, Mobile, Motorola CEO, Motorola Mobility Holdings Inc., Sanjay Jha, Sprint Nextel Corp, Verizon Communications Inc, Verizon Wireless
By Editor on January 29, 2011 · Leave a Comment
If sources are to be believed, Verizon Communications Inc.’s acquisition of cloud-computing company Terremark Worldwide Inc. may timely rival carriers to enter the fast-growing industry.
According to sources, Verizon’s $1.4 billion purchase announced yesterday gives the company access to servers where data can be stored, in the U.S., Latin America and Europe and brings business and government customers. Carriers like AT&T Inc. may seek similar deals.
The so-called cloud-computing industry is growing significantly faster than the service providers’ core businesses. The industry is in its infancy right now. There is significant potential.
According to Chief Operating Officer Lowell McAdam, Verizon sees the market for cloud services rising 20% a year to $120 billion in five years. The number could reach $148.8 billion worldwide by 2014. This growth may attract other carriers as they work to supplement slowing mobile sales and a shrinking pool of fixed- line customers.
By Editor on January 24, 2011 · Leave a Comment
Verizon Communications Inc. is taking $20.2 billion in charges to past earnings as it changes its pension-fund accounting, following a similar move by AT&T Inc.
According to the company, the new accounting method will lead to a $600 million expense in its 2010 results. The changes will make predictions for the funds’ growth correspond more closely with recent market performance, and won’t affect cash flow.
As per the company, rather than spreading out the gains and losses to funds over a period of several years, the moves will be recognized in the year that they happen. The previous way of accounting diluted the effect of a particularly good or bad year.
According to Robert Willens, President of consulting firm Robert Willens LLC, by absorbing the hit from the recession — the Standard & Poor’s 500 Index declined 38%in 2008 — in its past earnings, Verizon seeks to avoid reducing future profit.
As per him, the 2008 net asset loss was substantial, and these companies were facing hits to earnings over an extended period of time. At least a supplementary reason is to wipe away the loss.
By Editor on January 21, 2011 · Leave a Comment
Verizon Communications Inc. has taken to federal court its attempt to stop the Federal Communications Commission’s controversial new rules to guarantee open Internet access.
In a widely expected move, the telecommunications giant told the U.S. Court of Appeals for the District of Columbia that the FCC exceeded its authority when it enacted regulations last month to ensure so-called net neutrality.
The regulations forbid owners of high-speed lines and airwaves from favouring their services over competitors’.
“We are deeply concerned by the FCC’s assertion of broad authority for sweeping new regulation of broadband networks and the Internet itself,” Michael E. Glover, Verizon’s deputy general counsel, said Thursday. “We believe this assertion of authority goes well beyond any authority provided by Congress, and creates uncertainty for the communications industry, innovators, investors and consumers.”
The FCC said in a statement: “We are confident the order is legally sound and are prepared to defend it in any forum.”
The commission voted 3 to 2 along party lines last month to enact net neutrality rules, a top priority of President Obama and FCC Chairman Julius Genachowski. The rules prohibit phone and cable companies that provide high-speed Internet service from blocking access to any legal content, applications or services.
The rules are tougher on wired service than on the still-developing market for mobile Internet service. And after years of debate, the regulations did not go as far as some Democrats and consumer and digital rights advocates had wanted. That led to qualified support from some telecommunications companies, such as AT&T Inc.
But many congressional Republicans were outraged by the FCC’s move and have pledged to try to stop it. Fred Upton (R-Mich.), chairman of the House Energy and Commerce Committee, praised Verizon’s suit Thursday.
Verizon, which said it is committed to an open Internet, has been outspoken in arguing that the new regulations are not needed.
Genachowski’s office did not immediately comment on the Verizon appeal.
But Parul P. Desai, policy counsel for Consumers Union, said Verizon’s charge that the rules create uncertainty “doesn’t hold water.”
“Consumers should be able to surf the web without their Internet provider limiting their choices to its preferred sites,” she said. “The rules bring clarity and focus to a situation that’s been hanging in limbo for years.”
By Editor on December 1, 2010 · Leave a Comment
FCC is planning to tackle Internet traffic rules intended to prohibit broadband providers from blocking or slowing some traffic at a December 21 meeting contentious.
The Federal Communications Commission has announced a tentative agenda for its next meeting that included an order to adopt regulations to preserve the open Internet as a platform for innovation, investment, competition and free expression.
According to the agency, the rules would protect the transmission of lawful Internet traffic for consumers, while giving broadband providers the flexibility to manage their networks.
So-called net neutrality rules would determine whether high-speed Internet providers such as Comcast Corp and Verizon Communications Inc should be allowed to block or slow content information, or charge for a fast lane to reach users more quickly.
The main concern is how quickly consumers, particularly those using handheld devices such as Research in Motion Ltd’s BlackBerry and Apple Inc’s iPhone, can receive and download videos and other content.
Broadband providers say they should be able to manage networks, but some public interest groups and content providers argue that there should be a level playing field for all Internet users.
By Editor on October 29, 2010 · Leave a Comment
According to the US regulator, the top U.S. mobile service, Verizon Wireless, has decided to pay the U.S. Treasury $25 million on top of more than $52 million in refunds to consumers for overcharging them.
As per the earlier statements by the venture of Verizon Communications Inc and Vodafone Group Plc, it would pay refunds to 15 million cell phone customers incorrectly charged for mobile Internet use.
According to the Federal Communications Commission chairman Julius Genachowski’s statement the $25 million settlement was the largest in the FCC’s history. People shouldn’t find mystery fees when they open their phone bills and they certainly shouldn’t have to pay for services they didn’t want and didn’t use. In these rough economic times, every $1.99 counts.
According to the company, the settlement was voluntary and it apologized for the accidental data charges.
By Editor on October 18, 2010 · Leave a Comment
Verizon Communications Inc. is scheduled to report Q3-2010 results on Friday, October 22, 2010. In two of the last four quarters ending June 2010, the company’s reported esp. exceeded analysts’ consensus estimates but fell short in the other two quarters.
Verizon is a provider of communication services. Verizon operates in two segments: Domestic Wireless and Wireline. Its Domestic Wireless’s products and services include wireless voice and data services and equipment sales across the United States. Wireline’s communications products and services include voice, Internet access, broadband video and data, next generation Internet protocol (IP) network services, network access, long distance and other services. It provides these products and services to consumers in the United States, as well as to carriers, businesses and government customers both in the United States and in 150 other countries worldwide. On January 9, 2009, the Company acquired Alltel Corporation (Alltel). In July 2010, Frontier Communications Corp acquired New Communications Holdings Inc., Verizon Communications Inc.’s local wireline operations in 14 states.
Verizon’s total operating revenues were $26.8 billion in second-quarter 2010, a decrease of 0.3 percent compared with second-quarter 2009. The company reported a loss of 7 cents in basic earnings per share (EPS) in the quarter, which included $2.3 billion in pre-tax costs for workforce reductions associated with a second-quarter incentive offer that will lead to approximately 11,000 voluntary separations this year. This compares with earnings of 52 cents per share in the second quarter of 2009.
Verizon Wireless added more than 1.3 million net subscribers in the second quarter of 2010 (665,000 retail post-paid customers), and, together with peer AT&T, it continued to capture market share as it did in 2009. Strong wireless rivalry has raised the level of competition, in our view, with new unlimited service plans and data-equipped devices gaining significant appeal in a highly penetrated market. As of June 2010, Verizon Wireless had a 1.3% monthly total churn rate, and its retail post-paid monthly service revenue per user was $52, up 1% from a year earlier. Wireless data average revenue per user rose 19% in the second quarter of 2010 and comprised 35% of service revenues. The segment’s EBITDA service margin of 47.5% was the best in the industry. As of June 2010, 35% of Verizon Wireless’s retail post-paid customers had a smart phone or similar data-centric device.
Analysts’ estimates for the third quarter range from a low of $0.52 to a high of $0.56, compared to a consensus estimate of $0.541. For the third quarter, the consensus EPS forecast has remained the same over the past week at $0.541 and increased over the past month from $0.539 to $0.541 (0.37%). Of the 27 analysts making quarterly forecasts, 5 raised and 1 lowered their forecast.
Last month, VZ announced that Lowell McAdam, currently head of Verizon Wireless will become COO, and Francis Shammo, currently president of VZ’s wireline operations, will become CFO in Q4. McAdam’s current roles are also being filled internally. I believe these moves support VZ’s succession planning, highlights the deep managerial bench at VZ and are unlikely to result in major shifts in financial priorities.
The stock closed Thursday at $32.44, compared to 52 week range of $25.99 and $34.13. YTD, the share price is down by $0.98 or 2.93%. Last month the company announced plans to raise its quarterly dividend 2.6%, payable in November. The modest increase is consistent VZ’s recent history of dividend hikes, the July spin-off of certain relatively high EBITDA margin wireline assets and planned capex to largely support its wireless network. With modest near-term earnings growth expected I see the stock fully valued at current levels.
Filed under Mobile ·
Tagged with Alltel Corporation, AT&T, broadband video and data, Domestic Wireless, EBITDA, Frontier Communications Corp, Internet Access, Mobile, network access, New Communications Holdings Inc., next generation Internet protocol (IP) network services, United State, Verizon Communications Inc, Voice, Wireline
