Verizon Wireless starts paying the piper - $4.5 billion dividend payment goes to Vodafone
Due to the high costs incurred while Verizon was upgrading its 3G and LTE networks in the past few years, Vodafone hadn't been paid for its stake in VZW since 2005, because Big Red was mostly paying off debt for that period.
Investors were getting increasingly wary of the situation, but now they have a reason to pop the champagne bottles. Verizon is finally debt-free, and will pay out part of its profits as dividend to the owners Vodafone and Verizon Communications - $4.5 billion goes to Voda, while $5.5 are reserved for the majority stake-owner - come January 31st 2012.
The news sent Vodafone's shares way up on a down day at the FTSE exchange, since the majority of the money will be distributed among shareholders, Voda announced, plus Verizon will probably be doing that on a regular basis from now on. Vodafone also sold its stake in China Mobile for a cool $6.5 billion last year, and it seems that now it has a steady income stream to pay off debt, or upgrade and develop its own network around the globe.
2. lol (unregistered)
I'd like to see all the people now who said Verizon would crumble because they were in such bad debt.
3. bigdawg23 (Posts: 421; Member since: 25 May 2011)
Also keep in mind these are the same people that say AT&T/T-Mobile will reduce competition and cause a rise in costs.
However as VZW and AT&T have higher rates, people are willing to pay that for Coverage, Speed and Phone Selection. It is clear that having low cost plans T-Mo and Sprint doesn't do anything for subscriber growth. Just look at their most recent Quarter/Month End drop is subscribers.
4. BobbyTaba (Posts: 316; Member since: 11 Aug 2010)
I had at&t and now have verizon and they are both good but sprint has better phones right now and the best 4g network and coverage
6. huh? (unregistered)
Are you on crack? Sprint has the best 4g? What world are you living in?
5. Leo (unregistered)
You gotta be kidding me BobbyTaba...
"Sprint has the best 4g network and coverage" ?
you are a moron,
7. ginafromlos Angeles (unregistered)
@bobby lol u must be on crack! Sprints wimax 4G sukz balls even atts network is faster lol my boyfriend gets 5-6 mbps on his atrix, me I get 2-3 mbps the most on my evo 3d which I hate. Also another thing I hate bout sprint is that there wimax dnt penetrate buildings that well inside big buildings my evo 3d falls to 3g evdo whic is crap I dnt even get 1 mbp. While my boyfriend on att still has an h+icon and is getting 3-5 mbps in that same building. I hate sprint with a passion I think ima switch to att or maybe Verizon.
8. C-los (unregistered)
Bobby Taba you fool fo dat dawg ....Big Red by far dominates the 4G market with LTE being the standard in global usage ......WIMAX is Wifi on steroids bro no competition at all .....do some research bro than get back at me
9. dude (unregistered)
wow, i guess they dont teach grammar in schools. It is true that wimax isnt the speediest, however, it is the most reliable.
11. TheMexican (unregistered)
Speediest???? you mean fastest hahahahahahhaha!
10. fatgurl2 (unregistered)
@dude how is wimax the most reliable when it keeps crapping out inside buildings? I had different 4g phones from sprint htc evo, evo 3d and that Samsung galaxy slide phone they have I forgot what its called but it runs on 4g. I admit speeds are not bad on sprints wimax over here in NY when ur outside. Cuz Inside many buildings including highrise building and regular buildings like Kmart and wal-mart I loose 4g and get 3g evdo which is freaking slow u dnt even get 1 mbps. How is that reliable? ? At&t at least holds a 3g hspa+ signal inside buildings and its waaay faster than sprints 3g evdo on att my gurlfrend constantly gets 4-7 mbps on her iPhone 4 inside those buildings I loose 4g on my evo 3d. So yea I think atts network is more reliable. Verizon is also good cuz Verizon at least maintains a 4g lte signal inside buildings unlike sprint.