re: Vod & VZ (4) 3 similar and the FT view
>> Verizon Seeks Assurance From Wireless Partner
Richard Waters
Dan Roberts
March 29 2001 23:41GMT | Last Updated: March 30 2001 06:25GMT
Verizon on Thursday sought assurances from Vodafone over the future of their US wireless partnership after reports of a rift between the two.
Ivan Seidenberg, president and co-chief executive of the US telecoms company, called senior Vodafone executives to try to clear the air over Verizon Wireless, a venture in which Vodafone owns 45 per cent.
The call was prompted by reports that the two had fallen out over Verizon Wireless' technology plans and the possibility that Vodafone would seek to take control of the wireless company, the largest mobile carrier in the US.
Later, the two companies issued a joint statement calling the reports "mere speculation".
Mr Seidenberg made clear that the US company had no intention of giving up control of the mobile carrier. "Wireless is a foundation of Verizon Communications' long-term strategy and brand development," he was quoted in the statement as saying.
Vodafone gave up control of the US operation after agreeing to merge AirTouch, its own US business, with that of Verizon Wireless, creating what some analysts see as an uneasy relationship between former adversaries. A Verizon forerunner, Bell Atlantic, had lost out in the bidding for AirTouch a year before.
"There may be some people [at Vodafone] who would love to control [Verizon Wireless]," said one person close to the US company. "But so what? That isn't what happened."
Under their partnership agreement, Vodafone cannot gain control of the wireless venture without Verizon's consent, this person added.
On Thursday, Vodafone denied it had briefed journalists about plans for a bid and said there was "not much truth" in reports it was preparing the groundwork.
The two companies tried to play down the suggestion that Verizon Wireless' plans for third-generation mobile technology, announced last week, had driven a wedge between them.
Verizon Wireless said that it would adopt CDMA2000, which is incompatible with the 3G technology being planned by Vodafone. The US company later partially backed down and said it had yet to decide definitively which technology to adopt.
However, in a comment that appeared to point to the UK company's influence in the technology decision, Chris Gent, Vodafone chief executive, said: "The choice of any future technology will be made in the interest of both parties and with full awareness of the evolving technology trends in our industry." <<
Prior:
>> Verizon & Vodafone Seek To Quash Rumors
By Kristy Bassuener
Wireless Week
March 29, 2001
Wireless partners Verizon Commuications and Vodafone Group late Thursday moved to defeat rumors that the companies disagree over 3G migration technologies or that Vodafone wants to completely take over Verizon Wireless. The reports by media outlets on both sides of the Atlantic are 'mere speculation,' a joint statement reads.
Verizon Wireless' long-term plans are flexible enough to deploy different 3G standards, the statement says. 'We have an excellent working relationship with Vodafone,' says Ivan Seidenberg, Verizon Communications' president and co-CEO. 'We look forward to continuing to build Verizon Wireless with them.'
Vodafone CEO Chris Gent adds: 'The choice of any future technology will be made in the interest of both parties and with full awareness of the evolving trends in our industry.'
Media reports circulated Wednesday and Thursday that Vodafone, which already owns a 45 percent stake in the U.S. wireless venture, wanted to completely take over Verizon Wireless. Accounts also claimed that Vodafone was worried that its European mobile customers traveling in the United States would have to use a separate phone under Verizon Wireless' plan to use cdma2000 technology as its 3G migration path. Earlier this month, Verizon inked a $5 billion contract with Lucent to develop networks for the first phase of cdma2000.
Like most of its Europe-based counterparts, Verizon has chosen wideband-CDMA for third-generation services -- also known as UMTS. The cdma2000 migration path for CDMA mobile networks is not compatible with wideband CDMA, intended for GSM-based networks. The bulk of carriers in Europe operate GSM wireless systems.
U.S. carriers Verizon Wireless and Sprint PCS both expect to have high-speed 3G services operational this year. AT&T Wireless also plans a 3G rollout with investment partner NTT DoCoMo based on the wideband-CDMA standard. <<
>> Verizon and Vodafone Comment on Media Reports
Thursday March 29, 4:34 pm Eastern Time
Press Release
Verizon Communications Inc.
Vodafone Group Plc
PRNewswire
Verizon Communications Inc. (NYSE: VZ - news) and Vodafone Group Plc (NYSE: VOD; LSE) today said recent news articles claiming that the companies disagree on wireless technology standards, or that Vodafone is seeking to acquire control of Verizon Wireless, the companies' U.S. joint venture, are mere speculation.
Verizon Wireless recently announced it would begin to deploy wireless data technology based on initial standards for CDMA 2000, the logical next step from what Verizon Wireless has deployed today, and which will substantially increase data transmission speeds. Verizon Wireless' long-term migration path to 3G technology gives the company the flexibility to deploy different ultimate standards.
``Wireless is a foundation of Verizon Communications' long-term strategy and brand development,'' said Verizon President and Co-CEO Ivan Seidenberg. ``We have an excellent working relationship with Vodafone, and we look forward to continuing to build Verizon Wireless with them.''
Vodafone Group Chief Executive Chris Gent said, ``We continue to work extremely well with our partners operating and developing Verizon Wireless, the largest wireless business in the U.S. The choice of any future technology will be made in the interest of both parties and with full awareness of the evolving technology trends in our industry.'' <<
Earlier
>> Vodafone seeks common standard with verizon for 3G
Richard Inder
London
Dow Jones
(This story was originally published Wednesday)
Vodafone Group PLC (VOD) said Wednesday it's in talks with Verizon Communications (VZ) to agree on a common transmission standard for the third-generation networks of their U.S. mobile joint-venture Verizon Wireless (X.VRZ).
Vodafone, the world's largest wireless operator with about 80 million subscribers, denied a report that it is in a dispute with its joint venture partner.
"Given that the type of users who are likely to roam in the U.S. are business users, we think there is a convincing argument to agree on a standard," a Vodafone spokesman said. "Verizon are examining the possibilities, but in no way have they committed themselves to one technology."
Even if Vodafone and Verizon can't reach an agreement, Vodafone's global strategy should remain intact, analysts said.
The pointed to several factors: the relatively small number off customers affected; Vodafone's strong position in the venture; its clout with equipment suppliers; and the fact that technology is readily available which allows handsets to use more than one transmission standard.
Ensuring compatibility between transmission standards is a key issue for companies such as Vodafone, which are striving to offer so-called "seamless" services across the regions they cover. The general lack of compatibility between existing U.S. and European mobile systems has been seen as a stumbling block to the sector's development, although many of the problems have already been addressed by equipment suppliers.
"The technology is not a major barrier," said an analyst at a European bank. "The market it addresses is pretty small and handsets will be made available if someone like Vodafone is demanding it."
Shares in Vodafone at 1225 GMT were down 3.4%, or 7.25 pence, at 205.75 pence. The DJ Stoxx telecommunications services sector index was down 1.8% at 427.28 points.
Analysts say that the CDMA2000 transmission technology, which Verizon wants to use, is a much more cost effective option for the U.S. company, given its existing technology known as CDMAOne.
However, CDMA2000 is a different technology to the wide-band code division multiple access technology (W-CDMA)-a standard also known as UMTS - being deployed by Vodafone across the rest of its networks.
Still, a disagreement on standards could lead to a larger dispute over the direction of Verizon Wireless, which is due to be floated once market conditions improve. Vodafone owns 45% of Verizon Wireless; the remainder is held by Verizon Communications.
Most observers believe that over the longer term Vodafone may take control of Verizon to avoid a protracted argument over the 3G product.
"The talks highlight the importance of control," said another analyst.
As for the standards themselves, there appears to be plenty of time for the partners to make a decision, since radio spectrum for the technology is not due to be allocated until late next year.
"Vodafone will still be the biggest buyer of equipment," Teather & Greenwood analyst Kevin Fogarty said.
He added that Vodafone could use its buying clout of UMTS equipment and the associated handsets to force discounts for the CDMA2000 equipment.
Vodafone could use that same clout to encourage handset manufacturers to produce an attractive range of dual-band handsets.
"I do not think it is a big issue," said another observer. "The industry support for (UMTS) is growing even outside of the U.S. and Europe." <<
- Eric - |
