Vodafone and Verizon face off

16 Jul 2003

UK-based mobile giant Vodafone has clashed with its American joint venture partner Verizon Communications, over the future of their US project Verizon Wireless, according to the Wall Street Journal. Vodafone, which holds a 45% interest in the project, is believed to be frustrated at its lack of influence. The UK company has failed to convince its partner to switch to a technology compatible with most of its other regional operations and is increasingly concerned at its failure to get product placement on any of the products sold by Verizon Wireless. However, Verizon Communications is thought to consider Vodafone’s input as non-essential to the success of the project. The US cellco is the leading player in the market having returned profits of USD20 billion. Tension could mount though if Vodafone exercises its contractual option of forcing Verizon to pay it USD10 billion in return for a sizeable portion of its holding.

United Kingdom