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L K Consulting offers a no cost or commitment analysis of your communications network services. We will recommend a solution that makes sense or there is no obligation to further utilize our services. We represent the largest companies in communications, at&t, CenturyLink, Verizon, Windstream to name a few. Our concept is clear; we will do the analytic diagnosis and allow the carriers to align their services with your needs. Visit us at lkconsulting.net
Thursday, September 12, 2013
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Tuesday, September 3, 2013
Verizon to pay Vodafone $130B for stake in Verizon Wireless
Deal for partner's 45 percent stake in the wireless joint venture is the third largest corporate acquisition ever.
L K Consulting is proud to be a Verizon Solutions Provider
After years of talks and speculation, Verizon Communications has reached a deal to acquire Vodafone's stake in their Verizon Wireless joint venture for $130 billion.
The deal is the third largest corporate acquisition ever, behind Vodafone's $183 billion deal for Mannesmann AG in 1999 and AOL's $164 billion deal for Time Warner the next year. Under the terms of the deal announced Sunday, Verizon will pay $60.2 billion in stock and $58.9 billion in cash for Vodafone's 45 percent share.
"This transaction will enhance value across platforms and allow Verizon to operate more efficiently, so we can continue to focus on producing more seamless and integrated products and solutions for our customers," Verizon CEO Lowell McAdam said in a statement. "We believe full ownership will provide increased opportunities in the enterprise and consumer wireline markets."
Although the US wireless market provided an important hedge against its struggling European operations, Vodafone's exit from the market is the best move for the company, analysts said.
"The timing of the sale, which has been the subject of speculation for years, appears shrewd," analysts at CCS Insight said. "Although Verizon continues to show strong performance, recent merger and acquisition activity in the US points to the emergence of stronger competitors. Further, although Verizon resumed dividend payments to Vodafone in 2011, future pay-outs are not assured."
Verizon has for years sought to buy out Vodafone's 45 percent stake in Verizon Wireless, which is the No. 1 wireless provider in the United States and the fastest-growing and most profitable part of Verizon. However, Vodafone reportedly sought a better return from the asset.
Over the past few months, it appeared that the two companies were in talks over a buyout deal that could cost Verizon more than $100 billion, but those talks appeared to stall. In March, it was reported that the two companies were having informal discussions that included talk of a buyout as well as a possible merger. And in April, Verizon reportedly hired banking and legal advisers to put together a $100 billion bid for Vodafone's sh of the company.
Nokia: Selling phone business to Microsoft painful but necessary
Outgoing CEO Stephen Elop, who'll head back to Microsoft with the $7.2 billion acquisition, says Nokia didn't have enough clout on its own to rise again in the mobile market.
The decision to sell Nokia's devices and services division to Microsoft for $7.2 billion was a difficult choice, but market dynamics meant it was the only practical one, the Finnish company's outgoing CEO Stephen Elop and interim CEO Risto Siilasmaa said Tuesday.
"We need more combined muscle to truly break through with consumers," Elop said in a press conference in Espoo, Finland, where Nokia has its headquarters. "I share the frustration that comes from being so far behind two very large competitors," he added, referring to Apple's iOS Google's Android, but argued that "our goal of becoming the third ecosystem is becoming real."
Elop moved from Microsoft to Nokia to become its CEO three years ago, but Nokia announced today he's stepping down to become executive vice president of the devices and services business. And with the deal's expected closure in the first quarter of 2014, he'll carry that title back to Microsoft, where he stands a chance at becoming the chief executive who'll replace Steve Ballmer.
The deal, if it passes regulatory approvals, will profoundly change the mobile market,transforming Microsoft into more of an Apple-like company with integrated hardware and software. It's the same move that Google made by acquiring Motorola Mobility, too.
Of course, it's not the first time Elop has said extreme measures are required. To pave the way for the deep Microsoft-Nokia partnership around Windows Phone two and a half years ago, he penned the "burning platform" memo that said Nokia was like a person who must leap off a burning oil platform into an icy sea in order to survive. Those were bold words, and the Microsoft partnership that followed was bold too -- bold enough to suggest it could be a prelude to a merger. But it wasn't enough to rescue Nokia.
Without mobile phones, a market Nokia once dominated worldwide, Nokia will look very different, concentrating on its Nokia Here online mapping service and on the mobile broadband technology it sells to 600 carriers in 120 countries, with about 32,000 employees transferring to Microsoft.
"Sales of Nokia Windows Phones have gone from zero, two years ago, to 7.4 million units in the most recently reported quarter," Ballmer said. "Now is the time to build on this momentum and accelerate it further. This transaction will...strengthen the overall opportunity for us to create a family of devices and services, for individuals and business, that empower people around the globe, at home and on the go, for the activities they value most."
The decision to sell off such a high-profile part of the company was "rational" but emotionally difficult, said Siilasmaa, who is chairman of Nokia's board of directors.
"It's evident Nokia doesn't have the resources to fund the required acceleration across mobile phones and smart devices," he said. "Nokia has done great work, however, the industry is becoming a duopoly with the leaders building significant momentum at a scale not seen before."
Nokia's fortunes were tied to Microsoft's, but Microsoft was in a tough situation, too, Siiasmaa added.
"We cannot expect other vendors to invest as Nokia has grown to dominate Windows Phone," he said, impairing efforts to build a broad ecosystem of hardware and software around the operating system, and Microsoft's decision to sell its own Surface tablet hardware in 2012 also sent a strong signal to Nokia.
Nokia made the decision primarily based on what's best for Nokia shareholders, Siilasmaa said. The deal will be accretive to Nokia's profits, he said. For the first half of 2013, Nokia's profit margin of 4 percent would have been 12 percent under the deal, said Chief Financial Officer and and interim President Timo Ihamuotila.
Microsoft also extended Nokia 1.5 billion euros ($2 billion) of credit, a deal that will go ahead even if the mobile-phone business unit fails. It's split into three 500-million euro tranches due to be paid back in five, six, and seven years.
Nokia, a 150-year-old company that's a fixture in Finland, will look very different split into its new businesses and the center of Microsoft's European operations. Ballmer, Elop, and Siilasmaa made the case to Finnish employees, citizens, and regulators that the deal makes sense as the best way to provide job security for Finnish workers and economic strength for Finland.
"We are changing Nokia and what it stands for -- for us, for Finland and for our consumers," Elop said.
Siilasmaa, too, encouraged Finns to embrace the change.
"Fifteen months ago, when I was nominated to lead the Nokia board of directors, I could not foresee this particular way for Nokia to be reborn. It was a very emotional decision for me. I believe today marks a day of reinvention for Nokia," he said. "This is the beginning of the next 150 years of Nokia's story."
Level 3 to lay off 700 employees worldwide
September 3, 2013 | By Sean Buckley
Level 3 Communications (NYSE: LVLT), according to various reports, is going to lay off 6.5 percent or 700 of its employees worldwide in an effort to cut costs and pave a path to become profitable.
"As our business continues to evolve, Level 3 is focused on aligning our resources to maintain a differentiated customer experience, while also driving profitable growth," a Level 3 spokeswoman said in a statement to The Denver Post. "Streamlining our business operations to efficiently and effectively respond to the complex demands of the enterprise market and other core aspects of our business is critical to achieving our long-term objectives."
Out of this total figure, the service provider will let go about 150 workers in Colorado and another 60 in the U.K.
James Heard, Level 3's EMEA regional president, said in a message to employees obtained by The Register that slow revenue growth in the region drove the layoffs.
These job cuts come during a major leadership change at the competitive provider where Jeff Storey was named as the next CEO in April, replacing company founder Jim Crowe, who said he would step down by the end of the year.
During the process of integrating the Global Crossing assets into its fold, Level 3 initially laid off 400 employees last year.
Finding a way to turn its financial fortunes around continues to be a major priority for the company.
In the second quarter, Core Network Services was the main driver, rising 2.4 percent to $1.4 billion, while reducing its losses to $24 million. While the losses were lower than the $62 million it reported in the same period a year ago, this was the eighteenth quarter where the service provider reported a loss.
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