What Does the Buy-out of Vodafone Mean for Verizon?

Recently it was announced that Verizon secured the funding necessary to buy-out Vodafone’s 45% stake in Verizon Wireless. It is estimated that the deal will be finalized in Q1 of 2014.

Vodafone will be almost doubling its original $70B investment by getting $130B cash and stock! At the time of the initial investment, Verizon Wireless was a fledging wireless provider…but CAN YOU HEAR ME NOW?!

This buyout is a huge boon for the autonomy that Verizon Wireless will have when it comes to making technological decisions.

Streamlining Verizon Wireless’ Activities

In the past, one of the biggest challenges Verizon Wireless experienced with the Vodafone relationship was that because Vodafone has a large and diverse group of networks, it was often slow to make technological decisions. Verizon Wireless will now be unencumbered by this issue. Instead, it will be able to focus on more quickly and efficiently making the decisions required to create the quality services its customers expect.

The two groups will continue working together on specific initiatives, like VoLTE/RCS Roaming. At the same time, Verizon Wireless will not be required to manage all of its operations with slow-moving input from Vodafone.

Read: Completing the Puzzle: VoLTE End to End

The Future

Will Verizon Wireless be able to make the switch and begin to roll out new services with greater speed? I’m willing to bet the company is ramping up some nifty data analytics initiatives at a minimum – and I look forward to seeing what other exciting services they will introduce. Go Verizon Wireless!

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