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Feb 3, 2014

Investors flee telecom on price-war fears after AT&T price cut

By Sinead Carew and Sruthi Ramakrishnan

(Reuters) – Shares in U.S. mobile operators fell sharply on Monday after a AT&T Inc price cut fueled fears from investors that market leader Verizon Wireless and other rivals would have to react.

AT&T shares closed down 4 percent a day after the No. 2 U.S. mobile services provider slashed the monthly fee for a data plan from $40 to $15.

Jan 29, 2014

AT&T disappoints on cash flow target, subscriber growth

NEW YORK, Jan 28 (Reuters) – AT&T Inc’s fourth quarter
wireless subscriber growth and its free cash flow target lagged
well behind analyst estimates, sending its shares down 2 percent
in late trade on Tuesday.

Chief Executive Randall Stephenson also told investors on
the company’s conference call that a U.S. spying scandal was
hurting its business irrespective of any effect it could have on
prospects for overseas acquisitions.

Jan 28, 2014

Vodafone, Verizon investors back $130 billion Verizon Wireless deal

LONDON/NEW YORK (Reuters) – Shareholders of both Vodafone (VOD.L: Quote, Profile, Research, Stock Buzz) and Verizon Communications Inc (VZ.N: Quote, Profile, Research, Stock Buzz) approved Verizon’s $130 billion takeover of their Verizon Wireless venture on Tuesday, paving the way for the third biggest deal in corporate history.

Vodafone shareholders voted for one of the biggest payouts ever as 71 percent of the deal’s net proceeds – or $84 billion including stock – will be returned to Vodafone shareholders from the sale of Vodafone’s 45 percent interest in Verizon Wireless to majority owner Verizon.

Jan 23, 2014

Sprint eyes job cuts, fourth-quarter $165 million charge

NEW YORK (Reuters) – Sprint Corp (S.N: Quote, Profile, Research, Stock Buzz) said on Thursday it would report a fourth-quarter charge of $165 million for severance and related items as a result of job cuts it is making across the company to reduce costs.

The No. 3 U.S. mobile operator, which is 80 percent owned by Japan’s SoftBank Corp (9984.T: Quote, Profile, Research, Stock Buzz), said it also expected more material charges in future periods associated with a workforce reduction plan that would include management and non-management positions throughout the company.

Jan 21, 2014

Verizon revenue climbs on sturdy mobile growth

NEW YORK (Reuters) – Verizon Communications Inc reported faster subscriber growth and stronger profits than expected at its Verizon Wireless venture with Vodafone Group Plc, easing some concerns about intensifying competition if only temporarily.

Investors are worried market leader Verizon Wireless, which is paying $130 billion for Vodafone’s 45 percent share in their venture, will cut prices as discounts from No. 4 U.S. mobile service T-Mobile U.S. have drawn responses from No. 2 service AT&T Inc and No. 3 ranked Sprint Corp.

Jan 11, 2014

Price war in U.S. mobile market raises fear of profit hemorrhage

NEW YORK (Reuters) – New Year’s rivalry among U.S. mobile operators has Wall Street worried that the industry’s profits could seriously decline.

After months of aggressive moves by T-Mobile US to lure customers from other carriers, No. 2 operator AT&T Inc counterattacked on January 3 by offering to pay consumers to switch from T-Mobile. Days later, No. 3 ranked Sprint Corp promised big discounts for family and friend groups. On Wednesday T-Mobile upped the ante, saying it would pay hefty exit costs for converts.

Jan 8, 2014

Mobile US customer growth strong, offers cash to switch

LAS VEGAS/NEW YORK (Reuters) – T-Mobile US on Wednesday reported a fourth-quarter boost in customer growth and offered to pay customers to switch from rival services, escalating already intense competition in the U.S. wireless market.

The company, the No. 4 U.S. mobile operator, promised payments of up to $350 per line to consumers who break their contract with any of its bigger rivals and switch to T-Mobile.

Jan 8, 2014

Sprint unveils ‘framily’ plans for up to 10 people

NEW YORK (Reuters) – Sprint Corp on Tuesday unveiled a new option called “framily” plans that give up to 10 family members or friends big service discounts if they sign up as a group, the latest move in an increasingly competitive market.

The new option, which could represent a service discount of almost 50 percent from Sprint’s existing family plan in some cases, follows aggressive discounts by Sprint’s smaller rival T-Mobile US that sparked a new wave of competition.

Jan 7, 2014
Jan 6, 2014

Mobile to buy Verizon spectrum for $3.3 billion, eyes more purchases

By Sinead Carew and Neha Alawadhi

(Reuters) – T-Mobile US Inc(TMUS.N: Quote, Profile, Research) is buying wireless airwave licenses from Verizon Wireless to improve its high-speed network in a $3.3 billion deal and said it hopes to follow up with more spectrum purchases.

Shares in T-Mobile, majority owned by Deutsche Telekom (DTEGn.DE: Quote, Profile, Research), rose 2.5 percent on Monday after the company said it will pay Verizon Wireless $2.365 billion cash and give it $950 million worth of spectrum.

    • About Sinead

      "Sinead is a telecommunications industry correspondent. Her coverage area spans U.S. service providers, cellphone makers and chip makers. Before joining Reuters in 2002, she covered technology and telecoms for various trade publications."
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