Rural wireless carriers do not want Alltel-Western Wireless merger

[agentHibby]

Here is the article.

Rural wireless carriers ask FCC to reject Alltel-Western Wireless merger
By Dan Meyer
Mar 11, 2005
The Rural Telecommunications Group trade association, which represents small wireless operators in rural markets, filed a petition asking the Federal Communications Commission to deny Alltel Corp.'s pending acquisition of Western Wireless Corp. RTG cited a lack of information in the acquisition application, potential harm to competition in rural markets and possible anti-competitive roaming practices.

The deal, which was announced earlier this year, would bolster Alltel's position as the largest regional operator with more than 10 million wireless customers and spectrum licenses covering approximately 50 percent of the nation's land mass. Alltel would also become one of the largest roaming providers in the country with networks supporting analog, TDMA, CDMA and GSM technologies.

[agentHibby]

I don't know what local providers that cross over with Alltel-Western Wireless. Or any local rural PCS providers?? I could see them upset becuase what Alltel can now offer a big cheap rural roaming package.

[ShoresGuy]

Plus they could offer roaming options to a large number of people using different network standards. Having a broad base of network technology is definitely a smart step on Alltel's part.

[roamer1]

Originally Posted by agentHibby

I don't know what local providers that cross over with Alltel-Western Wireless. Or any local rural PCS providers?? I could see them upset becuase what Alltel can now offer a big cheap rural roaming package.

I can think of quite a few off the top of my head -- Sagebrush, Mid-Rivers, UBET, CC, Union (B-side 850 and PCS licenses), SCWireless, SRT, quite a few of the mom-and-pops in Texas, various Commnet areas...

-SC

[BillRadio]

Originally Posted by agentHibby

RTG cited a lack of information in the acquisition application, potential harm to competition in rural markets and possible anti-competitive roaming practices.

I agree w/RTG that Alltel's application should clarify what they propose to do in overlap areas. I also understand why Alltel didn't specify anything, in the hopes that the DOJ & FCC will be as generous to Alltel as they were to Cingular/AT&T.

Fortunately, the feds requested the same information and there should be quite a few areas, mostly in KS and NE, where they'll need to spin off some spectrum. It may be all academic for RTG, though. The deal will be easy to approve, and the FCC will toss out a few markets here and there. RTG does need to look like they're doing something for the membership.

The big question today is, who gets the spinoffs? Every major cellular player in the country could use it: Verizon, Cingular, USCC, and all the regionals like roamer1 mentioned. I'm expecting a free-4-all!

Consider this: if the feds require lots of spectrum/sites to be spun off, and there's a bidding war for it, it could go a long way to pay for Alltel's deal. Is there a quiet prayer being said in the boardroom for tight federal requirements? Maybeeeee.

[DemoMan]

I would personally like to see Alltel trade their new WW cellular coverage in Nebraska and Kansas to A) RCC/Unicel for their southern markets in Mississippi and Alabama (Then I could talk to my friends while they are at the Tunica Casinos without the analog roaming) OR to Cingular for the Texas market overlaps from the AT&T/USCC swap.

Both areas are lacking in CDMA 800 mhz coverage.

Bradley