Verizon Communications Inc.,formed by the merger of GTE and Bell Atlantic with Vodafone AirTouch, will reportedly launcha $15 billion initial public offering of its wireless business later this year.The sale, underwritten by Goldman Sachs Group Inc., will likely be the biggestIPO yet in the United States. A Verizon spokeswoman could not be reached forcomment by deadline.But the IPO scene hasn't been promising lately. GTE's Internetbackbone business Genuity struggled inits first week on Wall Street, and shares currently trade at almost 20 percentless than its original price. Although it raked in nearly $11 billion, AT&TWireless' much-hyped tracking stock also hasn't lived up to expectationsof grandeur it's still trading in the $25 range. Many analysts say it wasbecause there were too many shares flooding the market.
With the current economic climate, wireless operators face shrinking marketing budgets and reduced consumer spending.
Globally, the credit crunch is very much alive, and operators will be tightening their belts into the foreseeable future by putting off capital purchases.
