Verizon will not be expanding its reach into Canada after all
Verizon CEO Lowell McAdam closed that door today in an interview stating, “Verizon is not going to Canada.” He elaborated that speculation about Verizon’s possible entry into the Canadian market was way overblown.
Overblown or not, Verizon did actually make an offer to buy WIND Mobile for between $600 and $800 million. The move was enough to send a shiver down the backs of the competition, prompting a wide reaching campaign by Rogers, Telus and Bell to keep Canada’s carriers Canadian. The Canadian government was interested in the deal due to upcoming spectrum auctions that are expected to net a handsome price.
However, with Verizon’s and Vodafone’s announcement today that the former would acquire the latter’s 45% stake in Verizon Wireless as part of a $130 billion dollar deal, the money that might have been spent on WIND is obviously going toward that arrangement. McAdam explained that Verizon’s interest in Canada was limited before the Vodafone deal and that interest is “none” now that it has this giant deal on the table.
While Rogers and the gang will see this as a positive development for them, the Canadian government is sure to feel the effect of the absence of Verizon’s deep pockets when its spectrum auction begins early next year. It may open the door for AT&T to make a play as the carrier has made no secret that it is in the hunt buy something, somewhere in an effort to expand outside the United States.
1. AfterShock (Posts: 3698; Member since: 02 Nov 2012)
Frak, they had our telcos sweating big time.
2. TheLolGuy (Posts: 483; Member since: 05 Mar 2013)
Sorry Canada, it would've been great to see your telcos finally feeling some pressure so they'd stop screwing you guys over hard. I heard its way worse than in the U.S.
4. Berzerk000 (Posts: 4166; Member since: 26 Jun 2011)
Yeah, I'm pretty sure I've heard they pay a lot more for data, and they're on 3 year contracts. The same phone, for 3 years, or paying $400+ for a new one. I shudder at the thought.
3. PAPINYC (banned) (Posts: 2315; Member since: 30 Jul 2011)
No need to go au Canàda, Verizon owns the U.S.
Long live the King (of wireless).