Israeli start-up seeks to end roaming charges

An Israeli startup is trying to combat a common fear for international travelers: getting socked with hundreds or thousands of dollars in unexpected roaming charges for using cellphones away from home.

   Cell Buddy aims to turn any smartphone into a local one. Travelers can choose from an array of calling and data plans with carriers in dozens of countries. As a result, they pay local rates -- not the pricey fees charged by their wireless carriers at home.

   Here's how it will work once the service starts next year: Customers use a universal SIM card provided by Cell Buddy. Travelers turn on their phones and launch a Cell Buddy app once they reach their destination. The app finds local carriers and lets travelers compare prices, data packages, download speeds and other factors. Travelers are assigned a local phone number and can continue to use their regular phone number back home, at regular prices, using the same SIM card.

   One major caveat: Cell Buddy's SIM works only with unlocked phones, making it difficult for American travelers who have phones still tied to two-year service contracts. Those phones are locked and won't accept other SIM cards. In addition, Verizon and Sprint use the CDMA cellular standard, and some phones won't work with the more common GSM networks elsewhere.

   Cell Buddy's service eliminates the need to order a roaming plan ahead of time, stand in line at the airport to buy a local SIM card or physically switch the cards. Most importantly, it eliminates roaming charges to the home carrier.

source: www.kmov.com

Vodafone: Betting on an Economic Rebound in Europe

Outside the Verizon Wireless investment, Vodafone is a large wireless provider in the major European countries of Germany, the Netherlands, U.K., Italy, and Spain along with select investments in Africa and Asia. The company has roughly 500 million wireless subscribers around the world making it one of the largest mobile carriers. With the Verizon Wireless deal heading toward completion, the market is starting to wonder if Vodafone can justify its current price.

A rebound in Europe would help justify a long-term investment into Vodafone especially considering eMarketer lists that the U.S. market has already reached a 75% market penetration rate for high-speed data customers. Vodafone lists the primary European markets of Germany, U.K., and the Netherlands only reaching a smartphone penetration level of 39%. The rest of the markets are significantly below this level. Vodafone is clearly making a move out of the mature U.S. wireless market into the still developing European markets. A economic rebound in Europe would help Vodafone immensely.

Reviewing the deal
The deal involves Verizon paying Vodafone total consideration of roughly $130 billion. The primary details include the following:

• $58.9 billion in cash
• $60.2 billion in Verizon shares
• $5.0 billion in the form of Verizon notes
• $3.5 billion in the form of Verizon's 23% minority interest in Vodafone Italy
• $2.5 billion in the assumption by Verizon of Vodafone net liabilities relating to Verizon Wireless

source: www.fool.com