Verizon Wireless (News - Alert) will be completely owned by Verizon Communications once a $130 billion deal is complete and Vodafone will walk away with $58.9 billion in cash and $60.2 billion worth of stock shares.

Vodafone (News - Alert) on Monday officially said it would sell its 45 percent share of the Verizon Wireless joint venture to Verizon. The deal is expected to be complete in Q1 of 2014.

The $130 billion deal, which was ranked as the third-largest merger-and-acquisition on record, includes U.K.-based Vodafone getting $5 billion in loan notes, and Verizon taking over $2.5 billion of Vodafone's debt.

As of now, U.S.-based Verizon owns 55 percent of Verizon Wireless.

"It's a huge deal," Charles Golvin, an analyst at Forrester (News - Alert) Research, told USA Today. "It reinforces (the idea) that we live in a wireless world. It's recognition that (Verizon) needs to control the (wireless) assets entirely themselves."

The Guardian reported that Vodafone and Verizon Communications were “bickering” while running the joint venture, and “tussled over the direction and control of Verizon Wireless.”

Among the benefits Verizon will see after the deal is that it will be able to do what it wants with Verizon Wireless in different initiatives. For example, Verizon Wireless wants to expand in Canada, where there are a few main players in the market now. The company could also be freer to expand offerings where there is bundling of mobile broadband with high-speed or fiber-optic services, news reports said. It could also diversify more from the smartphone market.

On its part, Vodafone is widely believed to want to focus on European and emerging markets. It is likely that Vodafone could start acquiring smaller players in the European market. Also, the influx of cash will mean Vodafone can speed up the expansion of 4G service in Europe.

The deal comes as there is a lot of competition in the wireless market, with increased competition from smaller companies. Even a larger company such as T-Mobile is increasing its prominence in the market. But Verizon appears confident in the future of Verizon Wireless, which traces its origins to the year 2000.

"Even in the saturated market, (Verizon Wireless) continues to post growth figures," Bill Menezes, an analyst at Gartner (News - Alert), told USA Today. "They're looking at a world where growth is coming from these ancillary devices."

Verizon appears confident in the future of the U.S. sector, too.  “There’s a big phase of growth in the U.S. telecom market,” Lowell C. McAdam, Verizon CEO, told The New York Times. “I don’t think the wireless market is losing steam at all,” he said.

Still, the U.S. wireless market saw 2.2 percent growth in Q2 — which is the first time it was below 2.5 percent growth, according to analyst Craig Moffett.

Also, there has been slower demand for smartphones, recently, but the market may see increased demand in other fields such as home or car technology or even healthcare.

In a company statement, Verizon said “as a wholly owned entity, Verizon Wireless will be better equipped to take advantage of the changing competitive dynamics in the market and capitalize on the continuing evolution of consumer demand for wireless, video and broadband services.”

McAdam added, “Over the past 13 years, Verizon Wireless has been a key driver of our business strategy, and through our partnership with Vodafone, we have made Verizon Wireless into the premier wireless provider in the U.S. The capabilities to wirelessly stream video and broadband in 4G LTE complement our other assets in fiber, global IP and cloud. These assets position us for the rapidly increasing customer demand for video, machine to machine and big data. We are confident of further growth in wireless, and our business in its entirety.”

“This transaction will enhance value across platforms and allow Verizon to operate more efficiently, so we can continue to focus on producing more seamless and integrated products and solutions for our customers. We believe full ownership will provide increased opportunities in the enterprise and consumer wireline markets,” he added in the statement.

“McAdam’s strategy is to move away from being a traditional phone company,” Sam Greenholtz, associated with SGTelecom Consultants, explained to Bloomberg (News - Alert) News. “He wants to make Verizon a mobile and fiber company, to provide the means of delivery for cloud services and broadcasts.”

“The world is going increasingly wireless,” Howard Ward, chief investment officer at Gamco Asset Management Inc., told Bloomberg TV. “This is going to be a very good business for a very long period.”

Still, Vodafone may not have the same confidence in the future of the U.S. market or Verizon Wireless.

“Vodafone’s management may be looking at the U.S. and saying to itself, ‘We’ve seen this movie before,’” Moffett said. “There is little prospect for things getting materially better” [and] “a meaningful chance that things get worse” for Verizon Wireless.

Verizon will use a $61 billion bridge loan for the deal until it gets permanent financing, news reports said.

One concern about the deal is the price being paid by Verizon shareholders. At $130 billion, it represents eight times earnings before such costs as interest and taxes. The price could be challenged by some investors. Shareholders need to approve the proposed deal.

There may also be an issue with the fact that Vodafone will not have to pay any U.K. capital gains tax on the deal. Vodafone will pay some $5 billion in U.S. taxes on the deal, news reports said.