Effects of Possible Verizon Wireless Ownership Consolidation Unclear, Experts Say

Verizon Communications already owns 55 percent of Verizon Wireless, so it’s unclear whether ownership consolidation would result in much concern on the part of consumer and public interest groups that monitor such deals, said communications lawyer Andrew Schwartzman. “For all practical regulatory purposes, Verizon Wireless is the same as Verizon already,” he said.

Free Press Policy Director Matt Wood told us the move likely wouldn’t change the overall dynamics of the U.S. wireless market. “I think it would be of interest and probably but not necessarily have a huge impact on the U.S. market or Verizon’s operations in it,” he said. “We're not big fans of consolidation here, as you know, and when Verizon puts all that money out to buy all that interest Vodafone has in Verizon Wireless, then perhaps they have more debt leverage out there. Maybe that drives up their prices because it drives up their costs. There are lots of reasons I can think to be concerned about the general trend."

There are multiple ways for Verizon Communications to gain full control of Verizon Wireless, with the most likely being a Verizon-Vodafone merger in which Vodafone shareholders receive a premium, said Emmet Kelly, Bank of America Merrill Lynch’s director-European telecommunications, in a note Monday to investors. “Alternatively, Vodafone could sell its Verizon Wireless stake,” he said.