Verizon to buy Alltel for $28.1 Billion

[AnthroMatt]

Originally Posted by larry

Well either way they will still have to divest some areas to another carrier right? Obviously that will be AT&T.

Isn't anyone worried about higher prices in store for the future??

Sadly I think this is going to cause Sprint to be acquired by someone now which will also further reduce competition and lead to higher prices.

I guess with this deal I am not sure (and I may be dead wrong about it) I see higher prices as a necessary result. Verizon and AT&T seem to play off one another when it comes to rates. Alltel really didn't compete (rate-wise) with Verizon or AT&T. And Verizon would have to be careful about raising rates too much or risk losing out on customers.

Who knows...if Verizon passes AT&T to move back into the number 1 spot, maybe AT&T will lower some prices to entice disgruntled Alltel users away from VZW and over to AT&T?

[hank424]

I sell Alltel on a non exclusive basis. Verizon will not let me sell their product unless it was done exclusively. So much for choices and competition. MetroPCS is going to do some serious damage now. Many customers will leave Post Paid for sweeter Prepaid offerings such as the 4 phones for $100 Unlimited Plan by metro. I sell Alltel and Metro at a single location. It offerd my customers a great choice between two awesome companies. Now what. We will See….

[spleck]

Originally Posted by larry

Well either way they will still have to divest some areas to another carrier right? Obviously that will be AT&T.

Why is it that AT&T always gets named for the divestments? I guess AT&T is the only one that usually have spectrum to trade to Verizon. I imagine most of the divestments will be in trade for those areas that AT&T has 2 cellular licenses.

The optimistic side of me hopes T-Mobile has some extra PCS licenses in a few areas that they can trade to get something useful, or even some 850 licenses. Remember, T-Mobile has ONE 850 license now due to Suncom!

[spleck]

Originally Posted by COtech

I was surprised when Alltel passed up both of the FCC's recent auctions (AWS 1700/2100 MHz, and 700 MHz). That showed no inclination to future growth, in my mind.

Alltel DID bid in the early rounds, but got outbid in many areas and then withdrew everything. Either Alltel had a set limit, or perhaps there was some suggestion at that point that selling Alltel would be more lucrative if they didn't sink more debt into spectrum licenses.

And speaking of debt, why does Sprint get flak for having $30 billion in debt while Alltel had $22 billion and significantly less assets and subscribers?

[AnthroMatt]

Originally Posted by spleck

Why is it that AT&T always gets named for the divestments? I guess AT&T is the only one that usually have spectrum to trade to Verizon. I imagine most of the divestments will be in trade for those areas that AT&T has 2 cellular licenses.

The optimistic side of me hopes T-Mobile has some extra PCS licenses in a few areas that they can trade to get something useful, or even some 850 licenses. Remember, T-Mobile has ONE 850 license now due to Suncom!

Even Sprint could go after some 850 licenses. All of their handsets with the exception of the hybrid devices work on CDMA 850. I don't think it will really happen, but it is not impossible.

[UFO]

Originally Posted by agentHibby

I say he will do more commercials for Hardees

For anybody in Van Wilder, I'm sure he'll have options!

But it'll be interesting to see what happens with the divestures in the places where alltel and Verizon are the only competition. Where will Verizon keep thier own network and where will they divest their own customers for alltel's network? At&t also stands a lot to gain by moving into newer areas with this deal, even in places like Virginia where Verizon and alltel hold competing cellular licenses in many areas of the state. I'm sure one reason this is happening now is because they plan on having everything worked out by the end of the year when the FCC may be democratically controlled. Maybe this wil even allow USCC, Metro, and Leap to expand their footprints. I'm not sure about Sprint because it sounds like they're in a crunch as it is. It's a sad day for competition in the wireless industry.

[coalminer]

Originally Posted by spleck

And speaking of debt, why does Sprint get flak for having $30 billion in debt while Alltel had $22 billion and significantly less assets and subscribers?

That is because the group that "bought" Alltel just added what they "paid" for the company to the debt of the company.....Only here can someone say I want to buy a company, but I am not going to pay any money, just add the purchase price to the debt load of the company.....Got to love private equity firms......get rich while screwing everyone!!!!

[KyleAndMelissa22]

I still don't understand why Verizon had the same chance to buy Alltel last year,
but didn't even bid, or show any interest.

Now all of a sudden they changed their mind?

[AnthroMatt]

Originally Posted by KyleAndMelissa22

I still don't understand why Verizon had the same chance to buy Alltel last year,
but didn't even bid, or show any interest.

Now all of a sudden they changed their mind?

Did Verizon have the same chance? I don't recall the specifics of the Alltel sale to private investors, but maybe Alltel was never for sale to anyone except private holdings companies?

[KyleAndMelissa22]

Originally Posted by AnthroMatt

Did Verizon have the same chance? I don't recall the specifics of the Alltel sale to private investors, but maybe Alltel was never for sale to anyone except private holdings companies?

If I remember correctly, last year, Verizon, Sprint, AT&T, T-Mobile, and a few others
just stood back and watched as the private investors got Alltel.
(not even showing any interest in Alltel from the wireless carriers last year).
Everyone had their chance to bid, but didn't.

Alltel's been doing good the past few years, so theres no excuse for Verizon not wanting Alltel then.
IMO, At least Verizon could've showed some interest last year.

[AnthroMatt]

If Verizon had bid then, perhaps they would have risked a bidding war that drove up Alltel's cost.

Sounds lilke by going this route, VZW was able to privately negotiate terms and only announce them once an agreement was in place.

It is a lot easier to purchase a privately held company than one that is public.

I am just tossing ideas around....lol

[T Sizzles]

Originally Posted by larry

Well either way they will still have to divest some areas to another carrier right? Obviously that will be AT&T.

Isn't anyone worried about higher prices in store for the future??

Sadly I think this is going to cause Sprint to be acquired by someone now which will also further reduce competition and lead to higher prices.

I agree, this is nothing but bad news for Sprint. Having your largest competitor control your roaming and making a profit off of it is going to push Sprint deeper into the red.

[Mobile Mike]

Originally Posted by KyleAndMelissa22

I still don't understand why Verizon had the same chance to buy Alltel last year,
but didn't even bid, or show any interest.

Now all of a sudden they changed their mind?

From the different articles I read on Google News, it had to do with financials. It's the kind of complex analytical financial stuff that makes my head hurt. It all has to do with money, worth, value, and stock.

[guy2]

It's true here's the link
Verizon Wireless agrees to buy Alltel for $5.9B - Yahoo! News

[RadioFoneGuy]

They will have to divest any areas where they already running 850 and also any areas that execeed the FCC cap on spectrum which is 70-80 meg (i think)

would have to look at Bill Radios Maps and look at the overlays, the DOJ and FCC will have all kinds of stipulations on this one.

With the divestments when the smoke clears will there be enough customers left to pass AT&T?

[guy2]

Here it is on the verizon website
Verizon | Verizon Wireless To Acquire Alltel; Will Expand Nation’s Most Reliable Wireless Network

[larry]

Originally Posted by T Sizzles

I agree, this is nothing but bad news for Sprint. Having your largest competitor control your roaming and making a profit off of it is going to push Sprint deeper into the red.

Don't be so quick to assume that Sprint's roaming rates and agreements will change. They signed a 10 year deal with Alltel in 2006 so that brings them to 2016. The FCC will very likely set requirements for the merger that Sprint and others will be entitled to the same roaming deals they have now.

[RJB]

Originally Posted by guy2

Here it is on the verizon website
Verizon | Verizon Wireless To Acquire Alltel; Will Expand Nation’s Most Reliable Wireless Network

Great thanks for the link,

I am very happy with this because Verizon will be able to cover natively in places they couldnt before. I know for the Alltel fans this might not be good but I guess where I sit I think I will enjoy having alltel on board.

[jimbo]

Originally Posted by RadioFoneGuy

They will have to divest any areas where they already running 850 and also any areas that execeed the FCC cap on spectrum which is 70-80 meg (i think)

While there will certainly be some divestments required, one small correction...the FCC did away with the spectrum cap a couple years ago.

EDIT:
Here's a link...the spectrum cap actually went away in 2003.
FCC Announces Wireless Spectrum Cap to Sunset Effective January 1, 2003