Driving connectivity forward
The pending acquisition is a strategic move for Verizon as the company is locked in a race with rival AT&T
Verizon isn't the only company betting on the "connected car." Electric-car maker Tesla Motors
A crowded market
The auto industry offers a new growth opportunity for wireless providers including Verizon and AT&T. Last year, AT&T partnered with Ford
Verizon Wireless, a joint venture between Verizon Communications and Vodafone, is no stranger to the auto industry. In fact, General Motors
Innovative growth areas
By acquiring Hughes Telematics, Verizon is declaring its commitment to growing its revenue base. Hughes' relevance expands beyond the auto business to include its Lifecomm unit, which specializes in emergency response options for seniors. Meaning, the flexibility of Hughes' services platform will allow Verizon to expand not only within the car industry but also into spaces like health care and home energy management.
As Verizon is the second-largest U.S. telecom by revenue, I expect the purchase of Hughes to drive future growth for the company and help it better compete with rival AT&T. That's why I'm giving the stock an outperform CAPScall on my profile in Motley Fool CAPS. Don't forget to add these stocks to MyWatchlist -- the Motley Fool's free tool that lets you track and monitor your favorite companies.