NORTHEAST U.S. -- Petition to deny the VZW purchase of Unicel

[dmarkson]

At the last minute (2/11/2008), as expected, a petition was filed with the FCC to deny the Verizon Wireless buyout of Unicel.

Lots of words and requests to go above and beyond the law.

Words such as "GSM must be kept going at least 6 years", places "where Unicel has 850 must be divested to a GSM provider", etc.

I WANT MY iPHONE or else! Sounds like a temper tantrum.

Verizon Wireless and Rural Cellular Corporation - WT Docket No. 07-208

[EdwardP]

I can see individual Unicel service areas (counties, etc.) being transferred to Verizon Wireless, if Verizon does not operate itself in those same areas.

Where the two overlap, which could be the remainder of Vermont, those remaining Unicel networks should be sold to another GSM carrier, whether it be AT&T or T-Mobile.

[RadioFoneGuy]

There going to have to give the GSM and Spectrum to ATT and figure out how to give some spectrum to Verizon so it can build a new network.

It comes off as whining but its nice to see the consumer stand up for what they believe in.

I wish Dobson, Rural and Suncom would have paired up that would have been a good match.

[dmarkson]

No, they are not going to have to give the GSM spectrum to AT&T. First of all it's not GSM spectrum, its spectrum period. The underlying technology used is not important and there is no legal standing to even cosider doing so.

What Verizon does have to do is give up spectrum where they will hold both 850 licenses. That has already been addressed with the swap with AT&T that was discussed late last year. This is to adress the monopoly situation. In places where Verizon and U.S. Cellular will compete there is still competition.

Keeping GSM going makes financal sense for Verizon, at least in the short term, as they will have the lock on GSM roaming.

Forcing Verizon to allow current customers to stay on the GSM network is an unnecessary burdon. The same holds true for most all points in the petition.

It will be interesting to see the response.

I expect the petition to deny will be dismissed.

[RadioFoneGuy]

It will be interesting to see the DOJ and FCC conditions of the sale.

this one could take awhile.

At least its not XM and Sirius look how long its taken them to make a merger of "equals"

[Buickman]

This isn't exactly unheard of. Look at the upper midwest here. Except for the northern half of MN and WI, almost all the 850 is CDMA. Southern MN, Southern WI, Iowa, North and South Dakota, Nebraska, and I think Montana. TDMA used to rule the land when it came to rural coverage, and now CDMA and not GSM for the most part has taken over that role.

[fts]

I thought it was a little funny that Verizon announced their plans to purchase Unicel and convert the GSM users to CDMA about the time they anounced their their plans to pursue LTE as their 4G technology.

This means all the GSM users will be converted to CDMA and then a few years latter converted back to the 4G extension of GSM.

FS

[RadioFoneGuy]

I think he was talking about Verizon holding both 850 licenses period not just having CDMA on both.

Yah it sucks some of those real hilly rural areas wouldnt have GSM except on 1900.

1900 just dont cut it the great lakes areas.

[luke6283]

I hope this verizon deal does not go through! I would get less coverage due to weak verizon signal in that area, my plan would go from 65 dollars to over 100 dollars a month for equal features, also the data plan has a 5 gigabyte limit with verizon whereas with unicel i have unlimited. also I use a winmobile torrent program and under verizons definitions that is a big no no. Verizon sucks in coverage unless you live in burlington. Besides that I doubt there going to replace my 600 dollar GSM iPAQ with an equal device with the same features.

[dmarkson]

Verizon has responded with it's "Opposition to Petition to Deny and Comments, filed by Cellco Partnership d/b/a Verizon Wireless and Rural Cellular Corporation". Pretty much says what I said, except in many more pages.

(see link in 1st post)

[RadioFoneGuy]

Look at all the attached letters from Senators and Congressman. One even states that they need 3G services that Verizon offers.

It goes to show it does take an act of congress.

[EdwardP]

It's interesting that Verizon claims suggesting the entry of new GSM competitors into Vermont "is imminent" (see page marked 13 in document).

Since T-Mobile apparently has no interest in building a network in Vermont - despite their having spectrum in Vermont, perhaps T-Mobile needs to file a comment indicating this, to throw cold water on Verizon's comment.

[RadioFoneGuy]

Originally Posted by EdwardP

It's interesting that Verizon claims suggesting the entry of new GSM competitors into Vermont "is imminent" (see page marked 13 in document).

Since T-Mobile apparently has no interest in building a network in Vermont - despite their having spectrum in Vermont, perhaps T-Mobile needs to file a comment indicating this, to throw cold water on Verizon's comment.

there is alot of talk in the document about AT&T taking the majority of the state with Verizon only keeping alittle chunk.

How will Verizon maintain it is what im curious about, the rest of the network will belong to ATT they will need the switch equipment and backbones what side of Vermont is it located now?

[dmarkson]

Verizon is taking all the areas it does not hold an 850 license. That is pretty much all of SVT and some central VT. The rest will be traded to AT&T for cash and other markets.

In the areas it divests AT&T will simply take over the network.

In the areas Verizon gets new 850 licenses, it will overlay the current Unicel network with CDMA and EVDO. Unicel customers in those areas will be converted to CDMA as soon as the network is ready. Customers can probably leave if they want with no ETF, but the only other provider in most of the area is also CDMA (U.S. Cellular). So I do not believe anyone will be leaving except for the few that just hate Verizon for whatever reason.

Congress is now telling the FCC to get off their duff and approve the sale. It's the only way SVT is going to get 3G in the near future. I expect it will move along quickly.

[dmarkson]

Originally Posted by EdwardP

Since T-Mobile apparently has no interest in building a network in Vermont - despite their having spectrum in Vermont, perhaps T-Mobile needs to file a comment indicating this, to throw cold water on Verizon's comment.

It would be embarrassing for T-Mobile to state they have no interest in building out a market where they hold a license. Not good for public relations!

T-Mobile HAS to build at one point or risk losing their license. That could be exactly what VZW is talking about. Of course they don't have to build out much, probably a few token towers would do it. That's all they have done so far (Killington). AT&T has at least one token tower in WRJ.

[RadioFoneGuy]

Tmobile probably already has License saver tower in the area.

License saver sites have real lax restrictions. I have seen license saver tower that were over 5 miles from the next nearest market with an actual operation tower.

Alot of times the LS towers have low power set on them and bill block calls from being made on them but you will see the tower on your phone.

[dmarkson]

The DOJ has ruled on the VZW/RCC sale today. Although it does not give details, I expect the divestitures required are already taken care of by the swap between VZW and AT&T.
Justice Department Requires Divestitures in Verizon's Acquisition of Rural Cellular Corp.

[Eric47]

next in the news will be VZW plans to buy Sprint i figure after closing on unicel, rural, and (i cant remember the name but that one out west also)...lets not forget about alltel...jesus...we will be down to 2 players if ATT was to ever buy TMOB.

[Mobile Mike]

Originally Posted by Eric47

next in the news will be VZW plans to buy Sprint i figure after closing on unicel, rural, and (i cant remember the name but that one out west also)...lets not forget about alltel...jesus...we will be down to 2 players if ATT was to ever buy TMOB.

Verizon will NOTgo for Sprint. It's ludicrous to think so. Sprint is too large of a carrier to be bought out by them, not only that, but Verizon doesn't need to acquire Sprint's problems.

As for AT&T buying T-Mobile. Why does anybody think this is even possible? T-Mobile is owned by Deutsche Telekom. Unless AT&T was to try and take over the ENTIRE company, maybe, but DT is too large for AT&T. The only way AT&T could even have a chance at T-Mo would be if DT tried to sell their US holdings. That's it.

Alltel is not a major carrier. That's why they were acquired. The same may happen to USCellular some day. I highly doubt the day would come when all that's left is AT&T and VZW.

[dmarkson]

The FCC has *FINALLY* scheduled a vote on the VZW/Unicel deal for 8/1/2008.

http://rcrnews.com/article/20080717/FREE/633598370

[EdwardP]

Originally Posted by dmarkson

The FCC has *FINALLY* scheduled a vote on the VZW/Unicel deal for 8/1/2008.

FCC sets Aug. 1 vote on VZW/RCC deal - - RCR Wireless News

Could Vodafone's ownership interest in Verizon Wireless actually scuttle this deal???

[dmarkson]

No I don't believe so. There have been purchases in the past and it was never an issue.

[dmarkson]

This is VZW's press release on the completion of the purchase of RCC/Unicel on 8/7/2008. It summarizes things pretty well.
Verizon Wireless Completes Purchase Of Rural Cellular

Summary:

Unicel customers in Vermont, New York, and parts of Washington will be divested. Those markets will be placed into a management trust and continue to be operated under the Unicel brand name until a buyer is announced (it's pretty much a given that it is going to be AT&T)

"It is expected that Rural Cellular’s markets in southern Minnesota and western Kansas will be divested as a result of the regulatory approval process for Verizon Wireless’ proposed purchase of Alltel Corporation. Consequently, those markets also will continue to be served under the Unicel brand, and will not be integrated into Verizon Wireless."

For the rest of the Unicel network, which in New England includes western and northern NH, much of ME and Franklin Co MA, Verizon Wireless "will continue to use the Unicel brand for the next several months, as it works to integrate networks, and deploy CDMA technology and high-speed wireless broadband service. Verizon Wireless will maintain Rural Cellular’s existing GSM networks to continue serving the roaming needs of other GSM carriers’ customers."

[EdwardP]

If VZW already announced that AT&T was going to be the purchaser of those networks, then why was the press release worded that way?

Could VZW have received a better offer from another carrier that has not been announced yet?

[dmarkson]

I believe they have to put it into a management trust for legal purposes as it will take time for the transaction. From what I have read VT was trying to put all sorts of requirements on what had to be done with the network, which is at least part of the reason why Verizon gave up trying to fight to keep the parts of the system that was not required to be divested by the FCC or DOJ. AT&T might end up playing hardball with VT and delay the transfer and any system upgrades until they come to some compromise. It will be interesting to watch.