Verizon no longer entering Canada following Vodafone deal

by Andrew Roach on September 3, 2013

It’s been one of the biggest topics of the summer as Verizon have mooted and explored several ways of trying to enter into the Canadian telecom market.

But after agreeing one of the largest ever deals in the telecom industry to buy back their wireless stake from Vodafone, Verizon have now revealed that they have no interest in entering the Canadian market within the foreseeable future.

The news was broken by CEO Lowell McAdam in an interview on Monday with Bloomberg where he described the possibility of a move into Canada as practically zero.

It comes after months of speculation regarding a possible move which has riled up those on all sides of the industry including the Big Three carriers and even the federal government.

But while there was weeks of media coverage and debates throughout Canada, it seems as if there it was only an afterthought across the border with McAdam’s comments highlighting that the company may never have intended to enter into Canada.

It comes as the Verizon CEO stated that the company only had “limited interest” in the Canadian market and that the news over their entry was “way overblown”.

These views will come as a severe hammer blow to the federal government who had done almost everything they physically could to make the conditions perfect for Verizon to enter the market.

Having already eased the limits on foreign companies considering on entering the market, the government had already set aside heaps of spectrums for any newcomers to grab in the upcoming spectrum auction in January and compete against the Big Three group of Rogers, BCE and Telus.

But the news will come as a big relief for the Big Three who will be seeing today’s news as a victory in their quest to try and maintain their dominance across the country.

The three firms had made a big fuss against Verizon entering the Canadian market and even went as far as to launching a public press campaign against the move.

While the news will be good news for the larger networks, it will cast yet more clouds over the struggling independent carriers such as Wind Mobile and Mobilicity who had been potential takeover targets for the firm.

But with Verizon out of the picture, it seems that only a merger between the two or a last gasp takeover from either one of the Big Three or an unknown foreign carrier will be enough to potentially save the network.

There’s no doubt that Verizon’s decision to pull out of Canada will have ripple effects throughout the wireless community over the coming days and the government and the major network will need to be prepared to act fast to deal with any drama or issues that emerge from the fallout.

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