Why a Vodafone & Verizon Merger Would Be Great for Customers

Reports indicated the two companies were holding informal talks about the future of their joint venture, Verizon Wireless, in which Verizon holds a 55 percent stake and Vodafone has the remaining 45 percent. A Bloomberg report, which cited unnamed sources familiar with the matter, said the companies were mulling multiple options including combining the two companies, having one company sell its stake in Verizon Wireless to the other, or paying out a dividend to investors.  Verizon Communications CEO Ivan Seidenberg seemed to scotch the idea of a merger with Vodafone, noting he sees little compelling reason for such a move.   Ivan's translation - "I would like to keep my job." 

My speculation is that Vodafone management doesn't agree with Verizon's perceived cozy position in the US market which I think is 5 years behind the technology curve from the rest of the world.  Also, the US business has reached the end of the customer acquisition growth cycle and the FCC is under a new regime.  I think Vodafone would clearly like to see a management shakeup and see a realignment of some priorities.  US Verizon customers want iPhones and femtocells embedded in their FIOS and management has failed to deliver in the last few years.  A combination of the two could certainly help provide some worldwide leverage that Verizon needs with Apple.

Vodafone also has a much more customer-centric focus in Europe where ironically coverage is actually much better than Verizon in the US.  See our post about Vodafone will start advertising Femtocells.  Verizon's management is drinking their own coverage map BS cool-aid and is resistant to femtocells in the US for fear of admission of guilt.  Change is good in telecom and would like to see a shakeup at AT&T next.

Verizon CEO down on Vodafone merger, but open to iPhone - FierceWireless

Satellite Coverage Maps for Cell Phones

Satellite Coverage Maps You Can Believe

SkyTerra's satellite network system operates over North America and within 200 nautical miles of the waterways surrounding North America.  Terrastar's coverage map is a lot more believable coming from low level orbit versus AT&T's, Verizon & Sprint maps which are derived from cell phone towers on the ground.    Satellite cell phone service is coming to the masses and should be a viable alternative to the congested and spotty cellular networks.  If you have needs for reliable cell phone coverage, especially in the Western US you will be a good candidate for this new service.  

A prominent New York hedge fund billionaire intends to take on several of the country's biggest telecoms by building a massive 4G wireless network that one analyst has called "breathtaking in its ambition." Harbinger Capital Partners, run by Philip Falcone, and SkyTerra announced a merger -- a take-private deal with an enterprise value of nearly $2 billion, according to the companies. The FCC formally approved the deal last Friday.

Harbinger issued a statement saying it's building a new network that will cover most of the country by 2015, with tests rolling out in Denver and Phoenix next year. Falcone aims to use spectrum owned by his satellite investments -- including SkyTerra and TerraStar -- to build a wholesale data network "that could be resold by anyone wanting to offer 4G services to their customers, such as retailers or laptop/device manufacturers."

SkyTerra's satellite network system operates over North America and within 200 nautical miles of the waterways surrounding North America. Certain technical considerations and limitations, as well as the nature of customer terminals, can affect the availability of service in certain areas, including Alaska and Canada. In addition, the availability of service at the edge of coverage fluctuates depending on various conditions.

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82% of the World is a Cellular Dead Zone

Mobile Blackspots Map for the UK

We are huge fans of the fact that Vodafone will start advertising femtocells.  It's impressive to see Vodafone stepping up and taking the industry lead educating consumers about the new products to consumers in the UK using the brand Sure Signal.  Vodafone's Sure Signal guarantees you a great 3G signal at home, no matter where you live, and promotes the fact it might be an emergency risk if you are living in a coverage hole.  This is something the U.S. carriers have tried their hardest to ignore.  See their promotions and website above and watch the stories of people from around the UK who have been rescued from their mobile signal problems.  I am quite proud of a carrier finally admitting that they have coverage holes and giving consumers the ability to do something about it.  Kudos to Vodafone UK!

It will remain to be seen if the U.S. carriers still want to "blow smoke" up our asses with their ridiculous commercials touting their great coverage.  AT&T, T-Mobile, Sprint & T-Mobile have been dragging their feet for years "testing" femtocells in the U.S. and not educating their customers that they actually exist.  It also amazes me that Vodafone owns 45% of Verizon in the US yet it seems so against Verizon's arrogant culture to admit they actually have coverage problems with their network.  Do you think Verizon's marketing executives who came up with their moronic coverage map promotion commercials are going to be able to keep their jobs or are they going to have to do an "About-Face" (look in opposite direction) if they start selling femtocells in the U.S.?  Hmmm . . . we shall see.

As a result of Vodafone's leadership, Deadzones.co.uk has launched a new "Consumer Generated Mobile Blackspots Map" asking where mobile customers don't have problem areas indoors and outdoors.   Even if Sure Signal can solve the problem indoors at your home or office there are still many bad patch locations around the UK.  We ask for users to contribute pins in our map for 3, O2, Orange, T-Mobile, and Vodafone. Please also see this UK Blackspots Facebook discussion board we started under Vodafone's profile. 

Find this map at Deadzones.co.uk & Deadcellzones.com/uk.html