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Vodafone Sees “Unbeatable” Scale Through Tighter Partnerships With Verizon Wireless, China Mobile

If Vodafone’s idea of working together more with China Mobile and Verizon Wireless (NYSE: VZ) means rushing out a phone full of bugs—like the BlackBerry Storm—to market, it should probably reconsider. But Vodafone (NYSE: VOD) today said it is indeed trying to bring the three global superpower telcos together to create an “unbeatable” alliance, reports FT.com.

In an interview, Vodafone’s CEO Vittorio Colao said greater cooperation could provide savings on mobile phones and other telecom equipment, and even a better user experience to customers. Vodafone holds a minority stake in Verizon Wireless through a joint venture with Verizon Communications, and owns 3.2 percent of China Mobile, China’s largest mobile operator. Right now, it doesn’t make sense for the companies to collaborate too much since Verizon Wireless in the U.S. uses CDMA, a different technology. That may have contributed to the rocky start for the BlackBerry Storm, which had chipsets for both networks, so it could launch in the U.S. and Europe. But going forward, they hope to unite all the companies on one platform using LTE. With a leading market position in all the countries that they serve, Colao said: “If these three companies could work more closely… in the management of customers, procurement and service creation, we could be unbeatable, quite frankly.”

Jan 27, 2009 5:32 PM ET
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Posted In: Companies, Verizon, Vodafone, Countries, Asia, China, china mobile

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