Verizon to focus on Windows phones this holiday season (USA)
Verizon Wireless plans to put its marketing weight behind Microsoft Corp’s next mobile phone software to help develop a strong competitor to Apple Inc and Google Inc, according to the chief financial officer of Verizon Communications, as told to Reuters.
Verizon Wireless, a venture of Verizon and Vodafone Group Plc, already sells the Apple iPhone and many devices based on Google’s Android software.
But Verizon’s CFO Fran Shammo said the company wants a third strong software competitor in the mobile market where operators pay hefty subsidies for smartphones like the iPhone.
As per the interview, Shammo said that they are really looking at the Windows Phone 8.0 platform because that’s a differentiator. They are working with Microsoft on it.
Microsoft has not said anything publicly about the next update of its mobile software, but Windows Phone 8 — codenamed ‘Apollo’ — is expected on phones this holiday season.
As per the report, Shammo said that Verizon Wireless expects to have phones based on the next Microsoft software in time for the 2012 end of year holiday shopping season. The executive suggested that Verizon could play a similar role with Microsoft as it did with Google’s Android.
Verizon Wireless marketing played a big part in boosting the popularity of Android phones from manufacturers including Motorola Mobility, Samsung Electronics and HTC Corp. Verizon’s Droid brand even managed to give a struggling Motorola a new lease of life.
Nokia is Microsoft’s closest mobile partner as the Finnish company has bet its smartphone business on the U.S. company’s software. But Nokia’s fortunes have fallen sharply since it took up with Microsoft.
While Samsung and HTC both already sell phones based on Microsoft software, Motorola Mobility’s future plans are uncertain as it is in the process of being bought by Google.
Verizon doubts running new Nokia phones (USA)
Verizon expects that there will be three dominant smartphone operating systems but worryingly for Nokia, Microsoft won’t be one of the suppliers.
Verizon Communications, Chief Technology Officer, Tony Melone confirmed that he wanted a strong third player in the smartphone OS market, as it gives the carriers more flexibility and balances the interests of all the parties.
Despite the concerns about Windows Phone 7, the company will still release models running that OS later this year, although that happens before Nokia is expected to get its own models into the market.
Nokia has traditionally been weak in the US market, partly due to its lack of CDMA handsets for the Verizon and Sprint networks. The carriers themselves were generally wary of offering Nokia handsets due to its – since resolved – CDMA patent battle with Qualcomm, which they could have been dragged into.
Melone added that even if Nokia starts building CDMA devices again, it would be very difficult for the company to get its handsets into Verizon shops in the near future.
He stated that Verizon’s device pipeline for 2011 shows strong relationships with LG, Samsung, Motorola, HTC, and now Apple.
Verizon plans $3.6 billion share buy-back
The second-largest US telecoms group, Verizon Communications is to buy back as many as 100 million of its shares, returning cash to investors.
The buy-back, equal to about 3.6% of Verizon’s outstanding shares, could cost as much as $3.62 billion at Wednesday’s closing price. Verizon’s stock rose 29 cents to $36.45 in late trade on Thursday. The shares had gained 30 per cent in the 12 months before that.
The share buy-back underscores the confidence of the Verizon board in the company’s financial outlook and the performance of Verizon Wireless, its mobile joint venture with Britain’s Vodafone group.
Verizon Wireless began taking pre-orders from existing customers on Thursday for Apple’s iPhone, which goes on sale on February 10 ending a three-year exclusive network agreement between AT&T and Apple in the US.
AT&T, Verizon’s main rival, announced plans to buy back as many as 300 million shares in December with no expiration date. US companies have been increasing their share buy-back programmes during the past year. Data from Birinyi Associates, the stock market research firm, indicate US companies announced share buy-back authorizations totaling $373.4bn in 2010.
Apple to begin Verizon iPhone sales (USA)
Apple Inc would start online sales of the Verizon Wireless iPhone on February 9, a day before the device hits its store shelves.
As per Electronics retailer Best Buy Co Inc, it, too, would distribute the new version of iPhone 4 in its stores starting on February 10, the device’s official launch day. It already sells earlier iPhone models.
Verizon Wireless will start online sales of a limited number of iPhones to its existing mobile customers starting at 3 a.m. ET February 3 for delivery on or before February 10.
Apple stated that people ordering the phone on February 9 can have it delivered or reserve it for an in-store pickup February 10, when both companies plan to start offering the phone in their stores a 7 a.m. local time.
Verizon Wireless, a venture of Verizon Communications and Vodafone Group Plc, will be the second U.S. operator to offer iPhone after AT&T Inc’s more than three years of exclusive rights to the popular device.
Device makers compete to hit 4G network
The mobile internet is finally becoming a reality, urged on by the installment of new high-speed mobile data networks and the emergence of a new class of smartphones, slate-style tablets and other devices designed to take advantage of the new network capabilities and content geared to mobile users.
The chief US mobile network operators and makers of smartphones and tablet PCs used the annual Consumer Electronics Show in Las Vegas, as a launch pad for their new 4G services, software applications and devices boasting download speeds up to 10 times faster than current 3G networks.
The success or failure of the companies in persuading consumers and business users to trade-up to higher speed data networks and the next generation electronic devices that run on them will be closely watched elsewhere as mobile network operators worldwide prepare to invest in new infrastructure based on LTE (Long Term Evolution) and rival technologies.
At CES, Verizon Wireless, the joint venture between Verizon Communications and Britain’s Vodafone group, launched 10 new consumer products including four smartphones and two tablets designed to operate on its new LTE network which launched last month.
The new LTE devices, which will be available by mid-year, include Motorola’s new Droid Bionic smartphone and rival Google Android-powered handsets from HTC, Samsung and LG Electronics.
The two tablets, both powered by Google’s new Android 3.0 (Honeycomb) operating system, are Motorola’s Xoom and an LTE version of Samsung’s Galaxy Tab.
According to Dan Malone, Verizon Wireless Chief Technology Officer, the LTE network performance is already exceeding our expectations and promised that the network would be quickly extended from the initial 39 markets to more than 170 markets and two-thirds of the US population by year-end.
Grupo Iusacell files for bankruptcy again (Mexico)
Grupo Iusacell, struggling Mexican mobile network operator, has filed for pre-arranged bankruptcy and is looking for a second restructuring of its debt with creditors in just four years.
A judge may rule on whether to instigate bankruptcy proceedings next week, Gricelda Nieblas, head of the Federal Institute of Bankruptcy Specialists, a part of the judicial branch.
Billionaire owner, Salinas Pliego acquired 74% of Iusacell in 2003 for $7.4 million from Verizon Communications and Vodafone Group, assuming the debt in the process, but has struggled since then to turn the company around and has previously restructured the debt to reduce its servicing costs on the company.
The company delisted from the Mexican stock exchange at the start of this year. The company hasn’t reported any financial results since then, although its last financial statement confirmed that its subscriber base reached 3.6 million at the end of 2009.
Verizon CEO envisions future in Verizon Wireless dividend
According to the head of the majority owner of Verizon Wireless specified that the wireless venture would pay a dividend once it has reduced its net debt in line with its cash flow levels.
Verizon Communications, which has 55% ownership and operational control of the venture, has privileged using Verizon Wireless cash to reduce the venture’s debt load instead of paying its parents a dividend. However, this has disturbed the shareholders in Vodafone Group, a 45% owner of Verizon Wireless.
Verizon Chief Executive Officer Ivan Seidenberg told a Goldman Sachs conference that he sees that situation changing.
According to him, as the business generates cash and Verizon reach a point where net debt gets closer to about a balance, then a distribution of cash to the owners is probably the right thing to do. The company doesn’t have any problem with that.
Colao had rejected speculation that Verizon and Vodafone could merge and claimed that a Verizon Wireless dividend or a split of the joint venture were the most likely options.
Vodafone CEO sees Verizon merger unlikely
According to chief executive of Vodafone, a merger between Vodafone Group and Verizon Communications would be less possible than other alternatives for the parents of Verizon Wireless.
Vodafone owns a 45% stake in Verizon Wireless, which is controlled by its majority parent Verizon Communications; but because Vodafone does not receive a dividend from the venture, the British operator has been under pressure from shareholders to find an alternative.
According to Vodafone CEO Vittorio Colao, such a merger would probably be too complex compared with options such as a complete split with Verizon or a Verizon Wireless dividend payment to both its parents. Theoretically, conceptually, it’s an option, but practically it’s less likely than the other two.
Verizon expands 3G wireless coverage in Massachusetts
Verizon Wireless, a wireless phone provider that owns and operates the largest mobile telecommunications network in U.S announced the expansion of its local network in Berkshire County, Massachusetts.
Verizon Wireless is a joint venture of Verizon Communications and Vodafone. The expansion comprises a new cell site which allegedly provides improved wireless voice and 3G data coverage along Route 9 in Windsor, in addition to the surrounding area.
It also includes expanded 3G data coverage in Windsor, which will allow more customers to use notebook computers or Smartphones to download and use apps, quick download of music, send e-mails with picture and video attachments, download and play 3D games, and many more.
The company has invested over US$60 billion since its commencement to boost the wireless voice and data coverage of its national network and to add new 3G services. As a result of this investment, every cell site in New England will provide 3G wireless data connectivity.
Verizon spends $4.4 Million in 2nd quarter
Verizon Communications Inc. has spent US$4.44 million in the second quarter to foyer the central government on a broad collection of issues, including cyber security, texting while driving and broadband.
The amount was raised a little from the US$4.23 million compared to last year, but not as much of US$4.72 million it spent in the first quarter of 2010.
The amounts comprise of spending by Verizon Wireless, which is a combined project between Verizon Communications and Vodafone Group PLC, Britain.
According to a report filed on July 20, Verizon lobbied the central government on legislation concerning taxes on phone bills and the smuggling of phones into prisons, among others. Verizon supposed it lobbied Congress, the White House, the Commerce Department, the Treasury Department, the Department of Homeland Security and the Internal Revenue Service.
