Feeds

Vodafone-Airtouch spends $1.36bn on US outfit

The cellular giant starts to throw its weight around

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

The European invasion of the US wireless business has gathered pace, with Vodafone Airtouch spending $1.36 billion on CommNet Cellular. The move will expand Vodafone's coverage of the rural west of America and is part of the company's plan to plug the gaps in its coverage. (See also Euro giants poised to pounce) CommNet made a loss of $60 million last year on sales of $170 million. The company's previous owner, Blackstone, says that the red ink reflects exceptional costs related to its earlier leveraged buyout. The $1.36 billion payment includes $764 million in cash and $600 million in assumed debt. It values the shares at around $31 each. Vodafone's chief executive, Chris Gent, said that CommNet fitted into Vodafone's operations "like a hand in a glove." CommNet has 360,000 customers, primarily in Colorado, Montana, North and South Dakota, Utah, Wyoming, Idaho, Iowa and New Mexico. Vodafone is also negotiating with Bell Atlantic to fill in other gaps in its network. In the States, service providers must pay each other a cut of any call cost if their customer wanders into a competitor's territory. Vodafone says that this can increase costs to customers. Bell Atlantic has cast a shadow over the attempted network sharing by pulling out of previous agreements. Two separate deals have been worked out to co-operate, but Bell Atlantic wants to dissolve the agreements. Observers have put this down to sour grapes over Vodafone's (so far) successful invasion. merger with Airtouch. But even without deals, Vodafone will be able to fill out its coverage by gobbling up small companies. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.