Verizon Communications Inc. (NYSE: VZ) and KDDI telecommunications company, which is a Japanese company, has entered into an agreement after which Verizon will offer Voice over LTE (VoLTE) roaming service to Japanese tourists. The clients of KDDI will obtain the 4G network roaming service of Verizon on their trip to the United States.
Under the mentioned agreement, Verizon becomes the very first wireless carrier which allows VoLTE service for foreign travelers to the United States. On the other hand, the KDDI telecommunications company also considered the said agreement as a huge success towards mutual business relationship. The President of the Japanese company Takashi Tanaka signed his remarks in this matter: “I am immensely proud of becoming Verizon’s first VoLTE roaming partner. Through this successful VoLTE roaming launch, KDDI will deliver a superior experience to our subscribers while they are in the United States, the country that Japanese visit more than any other. I look forward to providing Verizon’s subscribers the same experience in Japan in the very near future.”
In accordance with the mentioned deal, the KDDI prescribers will be allowed to use the 4G LTE network of Verizon during June this year. However, this service is connected to the new VoLTE roaming compatible smartphone of KDDI which is anticipated to be out in the market during the following week.
On the other hand, the prescribers of Verizon will also be allowed to make use of the VoLTE facility as they visit Japan. The VoLTE facility is expected to be available during the latter part of the current year. During the signing ceremony, the Executive VP of wireless operations of Verizon Mr. David Small gave his remarks stating that, “We’re confident that we can provide KDDI customers with seamless service on the most reliable 4G LTE network available in the US.”
“Later this year, Verizon customers traveling to Japan should expect to get a great VoLTE wireless experience as well,” he further added.
In order to keep customers engaged, the company has announced a discount on 2 devices beginning June 1 this year. The first device is Bose SoundLink Mini Bluetooth Speaker II, while the second one is the Blaze Smart Fitness Watch of Fitbit Inc. (NYSE: FIT). These two devices can be availed at $179.99, in comparison to the original market price of $199.99. Moreover, both devices will continue to be sold at a discount throughout the month of June under the accessory of the month promotional campaign of Verizon.
Jefferies reviewed the performance of Verizon during the quarter, noting that regardless of the labor dispute resolution during the later part of May, the short-term work disturbance is likely to weaken the quarterly Wireline results. This will in turn lead to poor volumes and heightened strike-related expense. Yet, the firm reaffirmed its Hold rating, and set a price target of $53. The primary risks that could impact this price target include fluctuations in wireless pricing, macroeconomic difficulties, as well as wireline regulation.
As also stated by the Executive VP and CFO of Verizon Fran Shammo, the strike will most probably affect wireline quarter. Accordingly, Jefferies adjusted its revenues with lower volumes expectation, driven by dampened demand and a focus on repair and maintenance during the 45-week long strike. Meanwhile, the operating expense is increased on the back of the significant outsourcing and overtime costs of the company during the strike.