Verizon-Vodafone Merger Unlikely, Seidenberg Says
"There’s no compelling reason that this is an exciting thing to do,” Verizon CEO Ivan Seidenberg said about a merger with Vodafone. Speaking at a Foreign Policy Council event, Seidenberg said he would want to revise the structure of the joint venture under which the two companies own Verizon Wireless. The notion of a global wireless-only carrier is no longer the preferred model because of difficulties reaching economies of scale, he said. Meanwhile, Verizon would be open to carrying Apple’s iPhone on its network, Seidenberg said. But it’s Apple’s call, he said.
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Seidenberg said he doesn’t see a shortage of wireless spectrum and believes it should be up to the wireless industry to come up with a good solution instead of having the government simply take the broadcasters’ spectrum away. Unnecessary regulations would discourage private investment, he said.
Arguing against the conventional wisdom that America lags in wireless and broadband, Seidenberg said the country stacks up well in today’s global market in terms of choice, usage and quality of broadband networks. He said he has “a profoundly optimistic vision of the benefits communications technology can deliver for the world.” Of the health-care reform law that prompted Verizon to announce a $970 million write-down, Seidenberg said it’s light on cutting costs, though he praised the effort to broaden access to health care.