Telefonica Taps Verizon for Mobility in the US

Spanish based telecommunications giant Telefonica (NYSE:TEF, news, filings) has tapped Verizon Global Wholesale for mobility services in the USA.  Telefonica intends to serve its US customers via a “white label” service from Verizon (NYSE:VZ, news, filings) that obviously derives from Verizon Wireless, which it owns a majority of in partnership with Vodafone Group (NYSE:VOD, news, filings).  The services in question are wireless voice, text messaging and broadband, as well as a variety of Blackberry options – which Telefonica is customizing to match its own needs.

With the dramatic shift going on toward wireless service, companies that serve the communications needs of multinational corporations increasingly need to include a wireless strategy.  Telefonica serves some 800 multinational corporations, including several major European banks, and many of them obviously have commications needs in the USA that they need to be able to address.  It used to be that serving such customers was about wired connectivity, but that day is quickly fading.

Telefonica and Verizon already had a relationship, which this agreement deepens.  I doubt there was much question about who Telefonica would select.  Verizon’s coverage gives them an edge in this sort of deal over AT&T, whereas Sprint is still finding its operational footing and Telefonica’s competitive relationship with DT probably made a pairing unlikely.

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Categories: ILECs, PTTs · Wireless