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Deutsche Telekom May Own Too Much of T-Mobile USA

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Why is this brought up when VZW is owned 45% by Vodafone Group?

eric_cartman

Oct 31, 2008, 12:33 AM
Doesn't make sense.
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zalee

Oct 31, 2008, 1:33 AM
Where did you get that info? Wikipedia? I would not state any facts based on Wikipedia.
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consmonaut

Oct 31, 2008, 2:30 AM
Lol.

Pwned.
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iTry

Oct 31, 2008, 9:41 AM
I like your username
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wombough

Oct 31, 2008, 4:27 AM
Let me see If I can make this simple for you.

Verizon Wireless is owned (55%) by Verizon.

Verizon and Vodafone went in on Verizon Wireless. Therefore vodafone may own a few percent of the huge company that is VERIZON.

I don't see how people don't know this. Its just like when cingular was owned by ATT and Bellsouth before the merger of the two. Did that mean bellsouth owned 50% of ATT as they owned 50% of cingular? No.
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Jayshmay

Oct 31, 2008, 6:50 AM
The point is foreign companies aren't allowed to own more than 20% of a U.S. based communications company. Vodafone owns far beyond 20% of Verizon.

ATT/Cingular/Bellsouth can't be compared because ALL of those companies are U.S. based.
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wombough

Oct 31, 2008, 7:10 AM
No they don't how can you say that? They own 45% of verizon wireless NOT Verizon. Verizon is allot bigger then verizon wireless. I think I explained it perfectly clear in my last post guess not.

If they owned 45% of Verizon then yes. But not verizon wireless they are a sub company of verizon. I can't put it any differently so hope I explained it better..
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Versed

Oct 31, 2008, 7:12 AM
Well, then who owns the other 70% of TMO-USA?
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wombough

Oct 31, 2008, 7:16 AM
That was my question. I thought they owned it all. Will have to look into that. I think Tmobile USA (sub company of Deutsche)owns the other 70%. It might be considered a US company as they operate here. Like the article said just might be a simply paperwork issue. And if that is the case what is the point of the rule?
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doittoit

Nov 2, 2008, 12:55 AM
Verizon Wireless IS a separate company (joint venture).

The point remains, Vodafone is illegally owning a much larger than 20% share of Verizon Wireless (which is a separate company, so it is a telecommunication company on its own, and yes Vodafone owns more than 20% of it). Calculating the % of Verizon Comm that Vodafone is irrelevant, because yes it is less than 20% (but not much less since VZW is actually about half of Verizon Comm's revenue now).

So yes, if the FCC enforces this law, as it should, ALL foreign parties must relinquish greater than 20% ownership of any U.S. communication company (others too).
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wombough

Nov 2, 2008, 3:19 AM
so newscorp, GE, turner all own hundreds of companies or do they all fall under the parent company? I can almost guarnetee verizon communications has final say over anything VZW does.
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Versed

Nov 2, 2008, 8:48 AM
wombough said:
so newscorp, GE, turner all own hundreds of companies or do they all fall under the parent company? I can almost guarnetee verizon communications has final say over anything VZW does.


Not the point, its the frying pan calling the kettle black. Their complaint may end up backfiring on them.

But then again, who knows? Its been no secret VZ wants total or near total ownership in VZW.
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MidnightDT

Oct 31, 2008, 7:54 AM
thats a good question. it would be nice if the FCC would force Vodafone to sell off its controlling interest to Verizon Communications. thats what they have been wanting anyway.
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wombough

Oct 31, 2008, 7:59 AM
They can't as they do not own 20% of VERIZON.
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MidnightDT

Oct 31, 2008, 8:01 AM
ah thats why its not been an issue. makes sense. Even if it did come up seeing, as Verizon Wireless is a seperate company if the FCC gets bored they could hassle VZW, it wouldnt be so bad.
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BigShowJB

Oct 31, 2008, 8:04 AM
but that article states that they own 45% of the wireless division, and the quoted law states a foreign entity cannot own more than 20% of the common carrier licenses. their own site said they own 45%. so wtf is goin on...
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wombough

Oct 31, 2008, 8:07 AM
Verizon wireless is not a separate company so to say. It falls under the parent company of Verizon. Tmobile does not have anything but a wireless company. VZ is a publicly traded company VW is not as it falls under the public company of VZ.
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h_aguilar84

Oct 31, 2008, 9:24 AM
One can also make the arguement about Helio (50% owned by SK Telecom in South Korea), Virgin Mobile (50% owned by Virgin Group in the UK), and TracFone (subsidiary of America Movil in Mexico) I guess that the parent company and majority holder of the carrier must be U.S. only is what I'm getting from your argurement.

Also, how did the FCC not see this? Did DT already own the 30% when T-Mobile was rebranded in 2002 or did they eventually get to that number when they were reevaluated? Either way, it shows the ineffectivenss of the FCC...
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crood

Oct 31, 2008, 9:37 AM
VMO's don't count. They don't own licenses. They're essentially renting from the owner (Sprint).
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carmodboy99

Oct 31, 2008, 12:56 PM
besides that, the ownership in all of those is less than 50% foreign, and helio is no more.
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sangyup81

Oct 31, 2008, 9:32 AM
Verizon Wireless is a separate private company. It's proper name is Cellco Partnership, doing business as Verizon Wireless. This is how Vodafone can stay out of Verizon Communications' affairs and just work on Verizon Wireless' stuff.

It's all here: http://en.wikipedia.org/wiki/Verizon_wireless
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wombough

Oct 31, 2008, 9:57 AM
It is not a separate private company. VZ shares rise when VZW does good. They are integrated when it comes to Verizon's bottom line. You read all the time verizon boosted by good wireless sales and so forth. That is also why they thought they would not be able to keep up with sprint on EVDO because of the money they were dropping for FIOS. But since FIOS is paying off big for them they are passing by sprint on all fronts.
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sangyup81

Oct 31, 2008, 10:25 AM
Of course VZ's bottom line is affected by VZW. It's the same way as how Berkshire Hathaway go up when Dairy Queen does well. They own them so they get their profits. It doesn't necessarily mean they are the same company.

VZW has their own CEO, CFOs, CIOs, ect.

FiOS meant that VZ couldn't invest as much money in VZW. Doesn't mean they are the same company.
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carmodboy99

Oct 31, 2008, 1:07 PM
Oh, are they really? Youre comparing apples and oranges at this point. Sprint, while they remain in the business T1 LAN speed game (where they have Verizon beat), sold off all of their traditional phone service a few years ago. Sprint continues without fail to own and maintain the largest 3G footprint in North America, VZ does not. On a more basic level, Sprint continues still to offer plans that VZW tends to mirror, but add a $10 increase to. SprintNextel to this day is STILL the only carrier to offer Free Incoming Plans, and nights and weekends at 7pm as a standard. While they were keeping up with EVDO Rev.0 then EVDO Rev.A, the LTE decision has left them once again, behind Sprint in the 4G game. and please dont start with the BS ab...
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wombough

Nov 1, 2008, 12:40 AM
They were required to sell off their landlines by the FCC to aquire nextel. Wasn't'[ that a great move as we know how that has gone. Hmm embarq shares were in the 50.00 range and sprint form 5 to 15.

As for 3g yes sprint had them beat up till months ago were verizon has surpassed them. Look it up compare the two.

And I don't care if sprint has a plan free for the first 1000 min. If they don't start adding allot more people then they lose every quarter you can't say they are doing something good.

Yes WiMax will help them immensely. And your right I think it will be 4g or compete with 4g jsut fine. I am not hating on sprint. No were did I say they suck. I like sprint had them since they started in 1999 with the PCS network and had t...
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wombough

Nov 1, 2008, 1:00 AM
hear you go:
http://cellularmap.net/3g_compare.shtml »

I like to provide a reference when I say something unlike most on this forum that just talk talk talk.

As you can see verizon has many more areas of EVDO now were sprint is no were near.

They overlap many places sprint has in some were verizon doesn't have but verizon has it many many places that sprint does not.
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wombough

Oct 31, 2008, 8:22 AM
I really think this a more technical then it is anything else. It seems as long as they operate in the US they are considered a US company paying taxes and employing US workers and all. Vodafone considers VZW an affiliate and on their website says they have 27 million vodafone customers on Verizon Wireless. Like I pointed out Tmobile USA is owned by Deutsche but is HQ in the US.
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sangyup81

Oct 31, 2008, 9:33 AM
I always though DT owned 100% of T-Mobile USA. This probably has something to do with the structure of things. Is DT or T-Mobile publicly traded at all?
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wombough

Oct 31, 2008, 9:45 AM
yes Deutsche is a public company:
DEUTSCHE TELE AG ADS
(NYSE: DT)

NEW Real-time: 14.47 Down 0.23 (1.56%) 10:43AM ET
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tuolumne

Nov 1, 2008, 4:36 AM
You're living in a pipe dream if you think Vodaphone owns 45% of Verizon communications. The wirless arm is not the entire company. Get the facts strait first.
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Globhead

Nov 1, 2008, 6:23 PM
Who are you talking to? The subject says "VZW", so I would take that to mean wireless.
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wombough

Nov 2, 2008, 3:24 AM
the wireless is owned by verizon communications
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sangyup81

Nov 3, 2008, 10:23 AM
the wireless is only 55% owned by Verizon Communications
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doittoit

Nov 2, 2008, 12:56 AM
The point remains, Vodafone is illegally owning a much larger than 20% share of Verizon Wireless (which is a separate company, so it is a telecommunication company on its own, and yes Vodafone owns more than 20% of it). Calculating the % of Verizon Comm that Vodafone is irrelevant, because yes it is less than 20% (but not much less since VZW is actually about half of Verizon Comm's revenue now).
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wombough

Nov 2, 2008, 3:28 AM
This is all technical as the original article states. The fact is Deutsche owns 100% of tmobile. Just on paper Tmobile USA a US company as its based here. So all they have to do liek the article hinted to is change the paperwork to be in line with the rule.
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