Announcement today. Vodafone, Bell to Ally U.S. Mobile Units, Person Says (Update1)
Bloomberg News
September 21, 1999, 4:11 a.m. PT
Vodafone, Bell to Ally U.S. Mobile Units, Person Says (Update1)
(Adds Bell Atlantic declined comment, Vodafone not available
in 2nd paragraph.)
London, Sept. 21 (Bloomberg) -- Vodafone AirTouch Plc and
Bell Atlantic Corp. will combine their U.S. wireless operations
in a new company, creating a nationwide network capable of taking
on coast-to-coast operators, a person familiar with the
companies' plans said.
Bell Atlantic, the No. 1 U.S. local phone company, will hold
a 55 percent stake and operational control of the venture, the
person said. Vodafone, the world's largest wireless-telephone
company, will hold 45 percent. Bell Atlantic declined to comment.
Calls to Vodafone were not immediately returned.
The agreement gives both companies the nationwide wireless
network needed to challenge those of Sprint Corp. and AT&T Corp.
U.K.-based Vodafone's wireless operations are concentrated in the
western U.S., while Bell Atlantic's service area is primarily in
the eastern states.
The venture will have about 20 million wireless customers,
the person said.
It will be run by a seven-member board -- four appointed by
Bell Atlantic and three by Vodafone Airtouch. Bell Atlantic
Chairman and Chief Executive Ivan G. Seidenberg and Vodafone
AirTouch CEO Chris Gent will both hold board positions.
GTE Corp. Chairman and Chief Executive Chuck Lee will also
hold a board position once Bell Atlantic completes its purchase
of the company, the person said.
Vodafone shares rose 17 pence to 1,320 in London. Bell
Atlantic shares fell 7/8 to 63 5/8 in New York yesterday.
An announcement is expected today in New York, the person
said.
Wireless phone use in the U.S. will grow more than fivefold
by 2004, to 554 billion minutes of use from 105 billion minutes
in 1998, because of falling prices and increasing quality,
according to researcher Yankee Group. The number of wireless
subscribers in the U.S. grew to about 67 million at the end of
1998. |
