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Old 09-26-2005, 9:21 AM   #1 (permalink)

 
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Exclamation Midwest Wireless selling

The article in the Wall Street Journal today.

http://online.wsj.com/article/0,,SB1...5Fprimary%5Fhs
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Old 09-26-2005, 11:53 AM   #2 (permalink)
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Post Re: Midwest Wireless selling??

Remember this is a rumor.
MidWest Wireless will have to go to a larger CDMA provider.
That leaves Verizon and Alltel. (I highly doubt Sprint would be interested)

I am going to say Verizon has an 80% chance of getting this.
In 1/2 of the MMW cellular markets in Iowa were VZW on day 1 (Apr 4th 2000). For some reason 1/2 of Commnet Cellular of Iowa went to MMW. It would be a perfect fit for VZW to have MMW. There is only 1 market I am aware of that VZW and MMW go head to head and that is Waterloo, IA market (VZW Cellular B, MMW PCS D). There might be some places due to the Qwest deal that VZW does offer service where MMW is the Cellular B provider.

Alltel does have crossover Cellular networks in Minnesota where headquarters are due to the Western Wireless deal. I think Alltel might be ok in keeping most crossover markets due to competition. Alltel got rid of the Sprint Cellular networks in Iowa and sold them to Verizon as part of a DOJ divestment swap deal in 2000. Some of these MMW markets may be a little on the high roaming side due to people on weekends traveling to a metros where VZW offers the roaming service. Since VZW and Alltel have a cheap roaming agreement maybe that won't matter.

I wonder what will happen with helping out the other local and regional CDMA providers with BREW and Internet services??
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Old 09-26-2005, 12:54 PM   #3 (permalink)

 
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Default Re: Midwest Wireless selling??

Quote:
Originally Posted by agentHibby
Remember this is a rumor.
MidWest Wireless will have to go to a larger CDMA provider.
That leaves Verizon and Alltel. (I highly doubt Sprint would be interested)

I am going to say Verizon has an 80% chance of getting this.
In 1/2 of the MMW cellular markets in Iowa were VZW on day 1 (Apr 4th 2000).

I wonder what will happen with helping out the other local and regional CDMA providers with BREW and Internet services??
I would have to agree that Verizon is the front runner here. It makes the most sense to me. Verizon would gain a large footprint in Iowa and get all of southern MN, including the Rochester MSA. That would really make it nice for Verizon to run from the Twin Cities down to Des Moines w/o roaming. They could really compete well with USCC in Iowa if they aquired these markets.

Thats a good point about the Brew services Midwest Wireless provides for other small carriers. Would the buyer take this over or would these smaller carriers be S.O.L.?

Just a side note, Midwest has a PCS license in Dubuque, IA, and Fort Dodge, IA to go along with their PCS license in Waterloo.
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Old 09-26-2005, 1:55 PM   #4 (permalink)
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Default Re: Midwest Wireless selling

Sweet, I think I even predicted this might happen before the end of the year in one of these posts a few months back.

From the looks of RCC's stock price over the past few weeks, it would seem something might be going on there also. I wonder if they could possibly buy MWW? Don't know how much money they have on hand.

I wonder if VZW would have to divest any licenses, in Willmar for sure? I think they'd have 40 Mhz of PCS + the 25 Mhz cellular license.

If VZW does buy them, I just hope they do a lot of work near all the old boundaries that would now be 1 company! There are many dead zones along the markets right now.

I wonder how much of this sale was due to Alltel moving into the neighborhood and MWW knowing how well VZW and Alltel get along?

I believe USCC is an investor in MWW, wonder if they want out to pay for recent acquisitions or perhaps to fund future ones? I wonder if they have enough clout to have instigated this?

Dan
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Old 09-26-2005, 3:43 PM   #5 (permalink)

 
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Default Re: Midwest Wireless selling

I would highly doubt RCC has an $ laying around to buy anything, let alone MWW. I think your right on as far as MWW selling due to the fact Alltel has moved into town. MWW is competing with USCC in Iowa and now Alltel in MN. I'm sure Alltel will chip away at MWW as the years go buy.

A larger company buying a rural market is not necesarily a great thing. Whose to say Verizon would add many sites to the existing market? Verizon is not going to add sites in rural towns as regional carriers do.
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Old 09-26-2005, 4:20 PM   #6 (permalink)
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Default Re: Midwest Wireless selling

We have been hearing about Rural Cellular laying off workers and stock is going up. So that may be they might be on the table soon. They again maybe they are just fixing problems and are now moving forward financially.

Another thing to thing to think about is The Great Lakes of Iowa can they hold out as a small local provider in Iowa or is US Cellular finally get there network??

Verizon in most metros are great at having a stellar wireless network. They do add towers in rural areas, but it happens so slow most of the time.
If VZW is lucky it might be possible to just up the wattage on the towers that on the border of VZW MWW if they buy them out.

It is quite possible that MWW, RCC, Centennial, Cellular South are sold in less than a year.
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Old 09-26-2005, 5:04 PM   #7 (permalink)

 
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Default Re: Midwest Wireless selling

Quote:
Originally Posted by agentHibby

It is quite possible that MWW, RCC, Centennial, Cellular South are sold in less than a year.
Heres an idea....Midwest Wireless, RCC, and Cellular South should merge!!

They could fend off the big guys for a few more years.
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Old 09-26-2005, 5:15 PM   #8 (permalink)
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Default Re: Midwest Wireless selling

I understand the "con" of national carriers not supporting rural markets well, but WWC has done a pretty good job in the Dakotas, forcing VZW to keep up in many locations.

I'm just looking at it from the standpoint that if it happens, I hope I will see my phone work along Hwy-55 from the cities to Glenwood and beyond. Guess it really doesn't matter if MWW is owned by VZW, Alltel, or MWW, since they've had EVDO before VZW in MN and they support data roaming and pretty much all features I believe.

I'm sure it would be a rather smooth conversion if/when the sale takes place. They are changing the St. Cloud sid to 26, I wonder if they'd make Southern MN part of the metro network also?

Dan
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Old 09-26-2005, 11:56 PM   #9 (permalink)
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Default Re: Midwest Wireless selling

Quote:
Originally Posted by DanPFW
Guess it really doesn't matter if MWW is owned by VZW, Alltel, or MWW, since they've had EVDO before VZW in MN and they support data roaming and pretty much all features I believe.

As of about a month ago there was still no WAP 2.0 and picture messaging roaming on MWW. TXT, VM indicator, CID, and WAP 1.0 have all worked for a long time though.
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Old 09-27-2005, 12:13 PM   #10 (permalink)
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Default Re: Midwest Wireless selling

Here's a local article. It is too bad for the local economy, but I'd guess any company would still keep the naming rights to buildings and possibly keep at least some of the employees. The network will still need support.

But then again, if they would've lost their roaming agreement with VZW to Alltel and competing head-on with Alltel, there's no saying they wouldn't of been sold eventually anyway, and possibly for a lot less money.

The bigger the national carriers get, the more and faster the regional carriers will be eliminated. When will Alltel finally takeover CellCom?

http://www.mankatofreepress.com/loca...269234431.html

Dan
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Old 09-27-2005, 12:37 PM   #11 (permalink)

 
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Default Re: Midwest Wireless selling

The long shot is a group of private investors could buy the company, and most everyone would still keep their jobs. This would probably only extend the companies life another year or two before it was flipped.
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Old 10-06-2005, 9:25 AM   #12 (permalink)

 
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Default Re: Midwest Wireless selling

Here's an article from the St. Paul Pioneer Press.....nice to see a larger shareholder in MWW placing his own bet!

Who gets it?

Place your bet

So, who has the bigger appetite to buy tiny Midwest Wireless in Mankato — rural-oriented Alltel Corp. or No. 2 carrier Verizon Wireless?

Little Rock, Ark.-based Alltel does, says Tole Hart, research director of mobile and wireless at Gartner Inc., a technology consultancy. "Verizon doesn't go after rural carriers," he said.

Not so fast. New Jersey-based Verizon Wireless is more inclined, counters Curt Sampson, chairman and CEO of Hector Communications, a rural telephone company serving Hector, Minn. Hector Communications is the third-largest shareholder among 60 Midwest telephone companies that own privately held Midwest Wireless.

"It was told to me by someone out East that the worst-kept secret in the world was Verizon should buy Midwest," Sampson said.

Hart's reasoning is based on Alltel's territory, which now sweeps around and overlaps the Midwest Wireless service area covering southern Minnesota, northern and eastern Iowa and a portion of western Wisconsin. Alltel also specializes in serving rural areas and wants to be exclusively wireless, he said.

But Sampson observed that Verizon already has a roaming agreement with Midwest Wireless, and it is nearly done acquiring Cellular 2000 in St. Cloud, a smaller cell phone company in central Minnesota.

All three companies were mum last week on a Wall Street Journal report that the two large cell phone companies were pursuing Midwest Wireless.

—Leslie Brooks Suzukamo
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Old 10-06-2005, 12:23 PM   #13 (permalink)
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Default Re: Midwest Wireless selling

Good find!

Or all the news could be a stunt to try and raise the price?
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Old 10-06-2005, 12:27 PM   #14 (permalink)

 
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Default Re: Midwest Wireless selling

I could see USCC being a dark horse for the MN market. That would fit well into their midwestern market they currently run. They would have to divest the IA markets though....maybe to Alltel or Verizon?
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Old 10-06-2005, 1:00 PM   #15 (permalink)
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Default Re: Midwest Wireless selling

Here's another local article.

http://www.mankatofreepress.com/site...278005211.html

If Alltel was interested in a lot of work, they could sell the A license to Cingular and buy Midwest? I don't think they'd gain enough to justify this. I think the same reasons would keep USCC from buying them. They already have PCS licenses, I don't know that they want a complete rural network, although they are already a major investor in Midwest. Then USCC would have to compete with Alltel and roaming revenue, and I doubt they'd want to do that either, if Midwest doesn't.
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Old 10-06-2005, 5:09 PM   #16 (permalink)
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Default Re: Midwest Wireless selling

Question, OFF-Topic a bit, but what is it going to take for ALLTEL to finally be considered a National Carrier?
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Old 10-06-2005, 6:26 PM   #17 (permalink)
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Default Re: Midwest Wireless selling

Quote:
Originally Posted by Etorres777
Question, OFF-Topic a bit, but what is it going to take for ALLTEL to finally be considered a National Carrier?
More coverage in major metropolitan areas, maybe? I've thought about this, too and I think it's just because Alltel is mostly rural in it's coverage that they aren't considered a National Carrier.
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Old 10-07-2005, 12:20 AM   #18 (permalink)
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Default Re: Midwest Wireless selling

Quote:
Originally Posted by Etorres777
Question, OFF-Topic a bit, but what is it going to take for ALLTEL to finally be considered a National Carrier?
I think if they get into the Northeast and not just the little area in Conn. and CA then they might get that status, to me though with there recent merger's they should be considered a National Carrier at this stage of the game & I can see them being a very competative National carrier in the very near future with the big 4.
I guess it's going to be tough for them to get into certain Metro area's on the East & West coast's though.
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Old 10-07-2005, 12:14 PM   #19 (permalink)
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Default Re: Midwest Wireless selling

Alltel did sell all out its cellular network in PA to Verizon and most of Iowa.

By definition to be a national provider you must qualify in for 1 of these to be a national provider
25 out of top 50 markets
50 out of top 100 markets
100 out of top 200 markets

Alltel does not qualify for one of those yet. But in my book with the size of its network they are a nation provider.

If Alltel did buy MWW serval markets in MN would have to be divested. They would get to keep all of Iowa
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Old 10-07-2005, 2:16 PM   #20 (permalink)
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Default Re: Midwest Wireless selling

Quote:
Originally Posted by agentHibby
Alltel did sell all out its cellular network in PA to Verizon and most of Iowa.

By definition to be a national provider you must qualify in for 1 of these to be a national provider
25 out of top 50 markets
50 out of top 100 markets
100 out of top 200 markets

Alltel does not qualify for one of those yet. But in my book with the size of its network they are a nation provider.

If Alltel did buy MWW serval markets in MN would have to be divested. They would get to keep all of Iowa
I wonder how close they are to the 1st one?
And wonder if they would be going after the old Sussex Cellular area to get into the NY/NJ/PA market, if that would give them some top market status? it's a long shot but something to wonder about.
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Old 10-07-2005, 4:12 PM   #21 (permalink)
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Default Re: Midwest Wireless selling

Quote:
Originally Posted by Etorres777
Question, OFF-Topic a bit, but what is it going to take for ALLTEL to finally be considered a National Carrier?
Until the Vz roaming contract runs out (2010), they practically ARE a national carrier. From that stand point they simply need to advertise more as most people have never heard of Alltel.

If you do look at their National Freedom map, where they really need to fill out is by far KY. A few other gaps that stand out in my eyes are:
Minnesota (excluding Western Wirless areas and some roads),
Northern tip of Maine,
thumb of Michigan,
parts of WVa,
west central Ill
Big Bend & northwest of San Antonio, TX
northeastern, AZ
northwestern, AZ ( I would have thougth WW would cover this area)
various wholes in the rocky mountain states.
(NOTE: I see wholes in MT, ID, & NV that I would have though were covered by the WW areas, but perhaps those are actual mountains or deserts ( in the case of NV) where they plan no coverage anyway.)

Again, by far their biggest hole is KY. They have GOT to get more licenses there.

I think one thing that has concerned me recently, is the perceptions I hear on the boards about Alltel's quality of coverage. It seems like there are several people who are dissatisfied with Alltel in the Carolinas for instance Myrtle Beach, SC. Even more troubling is that I haven't heard one single positive comment about Alltel in the southwest -- like AZ. Some don't even know about Alltel there, others say its very poor service. As much as I would love to see Alltel well known as a national carrier, it would be best to be known as a GOOD national carrier. Thus if there are areas which truely have really poor service, they really need to address it. You don't want to be well known on the national scene as a company with medeocre quality of coverage. Kind of that old addage of: "Whatever you do, do it well." Getting by won't be enough for Alltel to survive as this industry consolidates.
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