Showing posts with label Vodafone. Show all posts
Showing posts with label Vodafone. Show all posts

Convergence, consolidation in US, Global broadband markets




Tom Paine



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Convergence. That's the word to describe today's broadband market, as distinctions between traditional telcos, cable systems, and to some extent wireless carriers (as mobile speeds increase) diminish. Cross-border and trans-oceanic barriers are becoming less important as well.

If the proposed Comcast-Time Warner Cable merger is ultimately approved, the US broadband market will consist of three giants surrounded by minnows. But don't forget Google, Apple, Microsoft, and Facebook, which all have their own designs on slices of the market. And there may be other emerging competitors we can't even recognize today. Middlemen, including fiber networks and content delivery networks (CDNs) such as Akamai, are also important players.

Market value is not the sole indication of strength, although it does give one a general idea of who might have the upper hand in future consolidation. Of course, the figures in
the table below include only equity values, not debt loads, which can be very significant in the broadband industry.

Verizon just completed the acquisition of the rest of Verizon Wireless from Vodafone
this past week. And Vodafone will pay out $82.5 billion to its shareholders, cutting
its market value to about $100 billion
. There has been speculation that AT&T might be
considering a bid for Vodafone.

The combined Comcast/TWC market value is shown as being the simple sum of the two's current market values, as it is a straight stock transaction. However, several factors could move the value up or down.




Link to chart

Source: Philly Tech News, based on closing prices as of 2/21/2014 (Price quotes from Google Finance)




Valuations: How much is Verizon's landline business worth?





Tom Paine



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The value the market places on Verizon's ( (NYSE: VZ) non-wireless business (essentially, what is considered the landline business) has been difficult to determine. But perhaps its recent agreement to buy out Vodafone's stake in Verizon Wireless provides some clues. Then again, perhaps not.

The Vodafone deal values Verizon Wireless at about $290 billion. By that measure, Verizon's 55% stake would then presumably be valued at $159.5 billion.

The market cap for Verizon (which includes its Verizon Wireless stake) is about $134 billion. Acording to Capital IQ, Verizon's enterprise value, a measure that typically equates to market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents, is $184.1 billion.

Verizon's non-wireless assets include its advanced fiber FiOS footprint, its legacy copper telephone footprint, and a strong enterprise business, which includes its Terramark enterprise cloud business acquired in 2011.

At times, there has been speculation that the landline business could be spun off. Another, perhaps more likely, alternative would be an increased use of the wireless network to supplement, and in some cases replace the copper network using 4G LTE. The single ownership of the two businesses should make a more integrated approach to managing them possible. Broadband Reports' Karl Bode does suggest that Verizon may consider selling (or dumping) some non-core area, copper-based networks, as it did previously to Frontier and Fairpoint.

There has been considerable debate as to whether Verizon's FiOS investment, which has been somewhere in the $20 billion range, has paid off.





Links 9/2/2013: Verizon's wireless buyout set: PA Cyber Charter School charged with fraud









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Amazon Web Services, IBM battle over high-profile CIA cloud contract (Washington Post)

Verizon poised for historic $130 billion Vodafone deal (Reuters)

Verizon Doubles Down on U.S. as AT&T Seeks a Hedge in Europe (Bloomberg)


PA Cyber Charter School founder Trombetta pleads not guilty to fraud, tax charges (Pittsburgh Post-Gazette)

CBS Reaches Accord to End Blackout on Time Warner Cable
(Bloomberg)

TV Market Tough to Crack for OLED Makers (Wall Street Journal: Digits)

Vending Machines Get Smart to Accommodate the Cashless
(Bloomberg)
Mentions Malvern-based USA Technologies as a competitor.

Bucks CEO has a winning touch (Philadelphia Inquirer)
Joe DiStefano on TE Connectivity CEO Thomas Lynch.



Links 8/29/2013: Verizon reported close to deal to buy out Vodafone's Verizon Wireless stake




Tom Paine



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Verizon Said Near $130 Billion Buyout of Vodafone Venture (Bloomberg via San Francisco Chronicle)

Vodafone Confirms Talks With Verizon on Joint Venture (New York Times: DealBook)

Comcast to Light Up 250-Meg Broadband Service in Provo (Multichannel
News)

Salesforce Q2 Results Beat Expectations (All Things D)

Cloud adoption questions – financials & beyond (Jon Reed/Diginomica)

SAP [Americas] CIO Still Sticking with BlackBerry (CIO.com)


Daily Links 4/25/2013: Verizon said to be preparing bid to buyout Vodafone's Verizon Wireless stake





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Verizon eyes $100 billion bid for Vodafone's Wireless stake (Reuters)

Safeguard Scientifics Announces First Quarter 2013 Financial Results
Capital deployments in Pneuron and Sotera Wireless bring partner company roster to 20

(Business Wire)

QlikTech Announces First Quarter 2013 Financial Results
Total revenue of $96.5 million increases 22% compared to first quarter of 2012
(QlikTech Press Release)

InterDigital Announces First Quarter 2013 Financial Results (Globe Newswire)

Mixed Q1 For Time Warner Cable
OIBDA Growth In Line, But Video Sub Losses Rise
(Multichannel News)

Arris Sees Video Gateway Market Start to Open Up (Multichannel News)

GE Puts $105M Into Pivotal, The New EMC And VMware Platform Initiative, But Here’s What It Is Missing (TechCrunch)

AWeber Announces New Headquarters in Chalfont, Pa.
Renovated 71,000-square foot building to be revealed with April 30th ribbon-cutting ceremony
(PRWeb)





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