Near-death of Verizon into Canada

楼主 / Caribou

Moncton is saved. “Amanda,” the “call trainer” from that city, can sleep soundly again. Verizon Communications says it’s not all that interested in Canada after all. It won’t be buying up spectrum or small failing wireless companies in the near future. Canadians can go back to a safe, secure world in which people have the “right” kind of competition: a choice between three large carriers, all offering similar products. The future is safe.

BCE, Rogers, Telus poised to rally as Verizon shuns Canada
BCE Inc., Rogers Communications Inc. and Telus Corp., are poised to rally after Verizon Communications Inc.’s decision to stay out of Canada maintains their lock on the country’s wireless market.

“All will open up tomorrow morning in a big relief rally,” said Chris Damas, an analyst at BCMI Research in Barrie, Ontario. “I estimate you’ll see at least a $2 gain in these shares.”

Verizon said Monday it was not coming to Canada after it agreed to buy Vodafone Group Plc’s 45% stake in Verizon Wireless, giving it full control of the most profitable U.S. mobile-phone operator for $130 billion in the biggest acquisition in more than a decade.
Verizon said Monday it was not coming to Canada after it agreed to buy Vodafone Group Plc’s 45% stake in Verizon Wireless, giving it full control of the most profitable U.S. mobile-phone operator for $130-billion. Verizon’s chief executive, Lowell McAdam, said the fervour that gripped the Canadian wireless industry over the prospect of competition from the U.S. giant was “way overblown.”

The decision to pass on Canada “has nothing to do with the Vodafone deal, it has to do with our view of what kind of value we could get for shareholders. If we thought it had great value creation we would do it,” he said.
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