Leading wireless provider,
Verizon Communications Inc.
) has received a three-year contract from the Australian Federal
Police. Under the deal, Verizon will provide Internet gateway
service to aid the IT capabilities of the agency.
The system promises enhanced security and reliability along
with efficiency. It will be equipped with intrusion detection and
firewall management, anti-spam, and anti-virus management
capabilities. The contract is worth AU$15 million ($14
We believe that the company's expansion into markets like
Australia would provide a significant opportunity to grow beyond
the saturated U.S. wireless market. Previously, Verizon had a
similar received a similar five-year contract from the Australian
Department of Defense for AU$50 million ($46 million).
Other than Australia, the company is also making forays into
cross border markets like Canada. Recently, there have been
reports on the company proposing to acquire Canadian wireless
provider Wind Mobile at an initial offer of $700 million. In
addition, reports suggest that the company is in talks to buy
Mobilicity, also a Canadian telecom company, representing a
potential threat for tier one Canadian telecom carriers like
, BCE, Inc.
Rogers Communications Inc.
Apart from acquisition, Verizon is seeking new ways such as
new pricing actions, FiOS Quantum, copper-to-fiber migration and
cost-cutting measures to drive FiOS revenue growth and maximize
profitability. The new FiOS pricing plans (set-top boxes and
planned bundled changes) would accelerate consumer revenue growth
for the next several quarters.
Verizon has also collaborated with Starz - a top-notch global
media and entertainment company - to launch STARZ PLAY and ENCORE
PLAY. We expect these combined efforts to lead to improved
revenues, high operating margins and greater market share.
Verizon, currently has a Zacks Rank #3 (Hold).
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