Verizon Not Entering Canada, Confirms CEO
The CEO of Verizon Communications has announced that the US giant is not planning to enter Canada’s wireless market, ending months of speculation and concerns from Canadian operators.
The news followed Verizon’s agreement to buy Vodafone Group’s 45% stake in Verizon Wireless for USD130 billion to take full control of its US cellular division. Bloomberg quoted Lowell McAdam as saying in a telephone interview: ‘Verizon is not going to Canada … It has nothing to do with the Vodafone deal, it has to do with our view of what kind of value we could get for shareholders. If we thought it had great value creation we would do it.’ The CEO added that speculation on a potential Canadian entry was ‘way overblown’, saying: ‘The press made much more of our interest in Canada than there was inside our company.’ The value of shares in Canadian telecoms groups BCE, Rogers and Telus began to recover on the latest news, having dipped amid the rumors of Verizon’s cross-border ambitions. The confirmation from the Verizon chief also puts to bed speculation about whether the US firm would move to acquire smaller Canadian cellcos Wind Mobile and/or Mobilicity.