Verizon Wireless Emerges as Largest US Wireless Company through Bell Atlantic and Vodafone AirTouch Merger

Strategic Insights -

As part of the formal combination of Bell Atlantic's and Vodafone AirTouch's U.S. cellular, paging, and PCS businesses, Verizon Wireless has been launched, solidifying its position as the nation's largest wireless company. With the addition of GTE's domestic wireless business, Verizon Wireless will serve more than 24 million wireless and nearly 4 million paging customers, covering over 90 percent of the U.S. population and 96 of the top 100 U.S. wireless markets, with 232 million net POPs.

Key Takeaways:

  • Verizon Wireless is formed through the merger of Bell Atlantic's and Vodafone AirTouch's U.S. cellular, paging, and PCS businesses, creating a nationwide wireless competitor.
  • The company will be the largest U.S. wireless company, serving more than 24 million wireless and nearly 4 million paging customers.
  • Verizon Wireless will have a nationwide footprint covering over 90 percent of the U.S. population and 96 of the top 100 U.S. wireless markets, with 232 million net POPs.
  • The company will achieve expense savings through reduced roaming costs and increased economies of scale in transport, billing volumes, handset purchases, and advertising.
  • Combining common CDMA technology platforms will yield capital efficiencies, simplified integration, and superior network quality.
  • After the close of the Bell Atlantic-GTE Corp. merger, Bell Atlantic-GTE will own 55 percent and Vodafone AirTouch will own 45 percent of the wireless joint venture.
  • The headquarters will be located in New York City and Bedminster, NJ, with a seven-member board, consisting of four designated by Bell Atlantic and three by Vodafone AirTouch.

Statistics:

  • The new company will serve more than 24 million wireless and nearly 4 million paging customers.
  • The nationwide footprints will cover over 90 percent of the U.S. population.
  • The company will have a presence in 96 of the top 100 U.S. wireless markets.
  • The total net POPs covered by Verizon Wireless will be 232 million.

Sources:

  • [Bell Atlantic Corp. (NYSE: BEL) and Vodafone AirTouch Plc (NYSE: VOD; London)]
  • [PRNewswire, April 4]
  • [GTE Corp. (NYSE: GTE)]
  • [Private Securities Litigation Reform Act of 1995]