Verizon, MSOs Kill Wireless JV

Verizon says cable/wireless technology innovation JV has been terminated in wake of Vodafone deal.

Alan Breznick, Cable/Video Practice Leader, Light Reading

October 17, 2013

2 Min Read
Verizon, MSOs Kill Wireless JV

Forget about that cable/wireless technology innovation joint venture between Verizon and three major US MSOs.

Verizon Communications Inc. (NYSE: VZ) CFO Fran Shammo said the much-ballyhooed deal, which Verizon struck with Comcast Corp. (Nasdaq: CMCSA, CMCSK), Time Warner Cable Inc. (NYSE: TWC), and Bright House Networks nearly two years ago, “has been terminated.”

Speaking on Verizon’s third-quarter earnings call Thursday, Shammo didn’t offer much explanation, merely saying the four companies are “moving in our separate ways on that.” As later clarified by a Verizon spokeswoman, the joint venture was actually dissolved in August. In a statement emailed to reporters, she said that “evolving technology and market changes since the joint venture was formed have led all parties to conclude that a joint venture, per se, is no longer needed to deliver innovative services to customers.”

Shammo said Verizon and the MSOs are continuing to work together to market bundles of cable and wireless services to their respective customers as part of the Advanced Wireless Spectrum (AWS) deals struck in December 2011. Under those pacts, which also involve Cox Communications Inc. , Verizon and the four major cable providers have launched promotions in scores of markets throughout the US. (See MSOs Sell AWS Spectrum to Verizon for $3.6B and MSO Deal Not Verizon's Spectrum 'End Game'.)

The move to terminate the wireless JV comes in the wake of Verizon’s pending agreement to buy Vodafone UK ’s 45 percent stake in Verizon Wireless for $130 billion. With that deal behind it, Shammo said Verizon will focus on bringing customers the best wireline and wireless products available. (See Vodafone Agrees to $130B Verizon Stake Sale.)

— Alan Breznick, Cable/Video Practice Leader, Light Reading

About the Author(s)

Alan Breznick

Cable/Video Practice Leader, Light Reading

Alan Breznick is a business editor and research analyst who has tracked the cable, broadband and video markets like an over-bred bloodhound for more than 20 years.

As a senior analyst at Light Reading's research arm, Heavy Reading, for six years, Alan authored numerous reports, columns, white papers and case studies, moderated dozens of webinars, and organized and hosted more than 15 -- count 'em --regional conferences on cable, broadband and IPTV technology topics. And all this while maintaining a summer job as an ostrich wrangler.

Before that, he was the founding editor of Light Reading Cable, transforming a monthly newsletter into a daily website. Prior to joining Light Reading, Alan was a broadband analyst for Kinetic Strategies and a contributing analyst for One Touch Intelligence.

He is based in the Toronto area, though is New York born and bred. Just ask, and he will take you on a power-walking tour of Manhattan, pointing out the tourist hotspots and the places that make up his personal timeline: The bench where he smoked his first pipe; the alley where he won his first fist fight. That kind of thing.

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