Feeds

Vodafone-Airtouch spends $1.36bn on US outfit

The cellular giant starts to throw its weight around

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

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. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple ran off to IBM
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.