Vodafone Australia Eyes Spectrum and 4 Telecom Titans Attracting Interest
AT&T, Inc. (NYSE:T): Current Price: $33.89
UBS believes that AT&T will see net postpaid subscriber additions totaling 750,000 during Q4, which is only slightly up from Q4 of 2011’s 717,000. This slowing of new subscribers suggests that it is necessary for AT&T to gain additional revenue from existing ones, which was previously driven by users upgrading to smartphones and more expensive plans. However, since more users are owning smartphones, not as much incremental revenue is available.
Sprint Nextel Corp. (NYSE:S): Current Price: $5.68
Sprint is the third leading U.S. mobile service provider and on December 17, the company announced that it has agreed to acquire Clearwire’s outstanding shares that it does not already own for a price of $2.97 per share. Although Sprint holds a more than 50 percent stake in Clearwire, this deal will require approval from the holders of just over 50 percent of Clearwire’s minority shares. Securing this approval seems tenuous, though, as the investors collectively owning almost 211 million shares of Clearwire, equalling about 29 percent of its minority shares, informed Reuters that they do not think Sprint’s bid is high enough. They say that they would not be happy casting their votes for the deal.
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Verizon Communications Inc. (NYSE:VZ): Current Price: $42.74
Verizon Communications shares have fallen 2 cents at $42.91 although the stock was upgraded to Buy from Hold by Canaccord Genuity’s Greg Miller. Miller gave the stock a $50 price target after the company’s Q4 report yesterday, which discussed higher-than-expected revenue regarding activations of smartphones, including Apple‘s (NASDAQ:AAPL) iPhone, but there was lower-than-expected profit per share.
Vodafone Group plc (NASDAQ:VOD): Current Price: $26.07
Vodafone Australia has indicated that it will pay the AU$25,000 for the application fee to possibly be part of the auction for 4G spectrum in the 2.5GHz spectrum band after it pulled out of the 700MHz auction and forced the government to increase the reserve price of that spectrum. The applications for participation in the auction are due tomorrow. Telstra already confirmed that it will participate in the auction and this week, Optus consumer CEO Kevin Russell stated that Optus will submit its application and pay the fee, but he did not clarity if it would participate in the auction.
Clearwire Corporation (NASDAQ:CLWR): Current Price: $3.19
According to Jim Patterson, former president of Sprint (NYSE:S) wholesale services, it is possible that Dish Network (NASDAQ:DISH) is interested in both Sprint and Clearwire instead of only Clearwire’s spectrum holdings, The Kansas City Business Journal reports.
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