On Monday Verizon purchased a 45% stake in British cell phone provider Vodafone for $130 billion US dollars. Verizon CEO Lowell McAdam commented that they we're not interested in entering the Canadian market and that speculation that they might was way overblown.
Why would Verizon not want to enter the Canadian wireless market?Verizon Wireless would have to invest a significant billions of dollars in hopes of acquiring 5 - 10 million Canadian customers. WIND Mobile & Mobilicity would cost approx. 1 billion giving them almost a million customers on a network that is incompatible with their own. They would then have to operate those two companies who are bleeding money and then work at building out their own CDMA compatible network throughout Canada. We'd estimate costs of anywhere from 3 - 7 billion for such a move. From there they'd have to compete with Bell, Rogers & TELUS who will do everything in their power to compete.
Would Verizon Wireless offer better monthly wireless deals for Canadians?Maybe. Verizon averages $55 per month per user while Bell, Rogers & TELUS combined average just over $60. That doesn't leave a whole lot of wiggle room or reason for Canadians to switch to Verizon.
Canada vs. US Average Revenue per User
- Rogers $67.36
- TELUS $60.04
- Bell $56.85
- Verizon $55
- AT&T $47.60