Rumors on the operator side

Rumors on the operator side

On the heels of the ATT/ Bellsouth merger, many rumors are flourishing for further concentration in the US telecom market. The latest is Verizon bidding for Qwest. The deal could make sense as Verizon has to increase the size of its network to regain "parity" at the bargaining table with ATT. The move could also be an attempt to prevent ATT to control all West Coast interconnection points for international calling, and gain access to one of the best coast-to-coast fiber backbone networks, a competitive advantage for broadband services delivery.

But it is not the only rumor. Verizon has made announcement on its desire to buy Vodafone 45% stake in Verizon Wireless for $40bn. Will Vodafone hear the siren? No doubt that Vodafone shareholders are ready, but how long the management will resist?