Alltel eyeing T-Mobile?

[ComicalMoodyDan]

Alltel eyeing T-Mobile?
Steve Rosenbush

Credit analyst Dave Novosel of Gimme Credit raised the idea today that Alltel might want to make a move on T-Mobile USA after it completes its acquisition of Western Wireless sometime this summer. People familiar with the matter say Alltel isn't in the process of making a move on T Mobile USA, and that it isn't likely to contemplate any more deals until the Western Wireless acquisition is behind it.

Nonetheless, BusinessWeek correspondent Brian Grow, who covers Alltel from Atlanta, says people familiar with the company acknowledge that there would be certain synergies in an Alltel-T-Mobile combination. Western Wireless CEO John Stanton sold VoiceStream to Deutsche Telekom, and it's now the backbone of T-Mobile USA. Stanton is joining the Alltel board, putting him in a position to wield influenece over both companies.

There are some hurdles, though. T-Mobile and Alltel use different kinds of wireless technology, although that might not make such a difference in the long run, as wireless companies rebuild their networks for faster data services.

A deal would transform Alltel, which has been a regional phone company in the South, into a truly national player. It would be a fourth national carrier, facing titans Verizon Wireless, Cingular and Sprint-Nextel. T-Mobile has positioned itself as a bargain brand. That's unlikely to remain a long-term strategy for Alltel, though. If it does make a move on T-Mobile, it would probably need to do even more deals and invest heavily in technology to compete head-on with rivals in the U.S. market. Alltel remains a company to watch.

Alltel eyeing T-Mobile?

[MOTOhooligan]

If they did buy T-Mobile then both of my wireless providers would have been purchased by Alltel... that's weird.

I don't know if it would make much sense, though. They would have to reconfigure the networks for CDMA and then there would only be one national GSM carrier in the US.

[bobolito]

They should've made a move on Sprint when they had the chance.

[jones]

Originally Posted by bobolito They should've made a move on Sprint when they had the chance.

Agreed, Sprint should be their Natural Partner since they
operate the Same Technology.

[Dogma]

Originally Posted by jones Agreed, Sprint should be their Natural Partner since they operate the Same Technology.

They may both be using CDMA, but Alltel is 800 MHz and Sprint is 1900 MHz. I suppose that is better than one being CDMA and one being GSM though.

I don't understand how Alltel could buy out Western Wireless and then go onto purchase T-Mobile. And even if they could aquire T-Mobile, they would be spending millions on changing out equipment to CDMA. It seems a large task for Alltel to swallow!

[DanPFW]

...but then again, WW has GSM on some towers. Alltel could pick up t-mobile and become a cozy roaming partner to Cingular as well has Verizon?

[Mobile Mike]

I certainly hope not!!

If this ever comes to pass, I'm out. I like T-Mobile. I do NOT want Alltel or another CDMA carrier. This is hopefully bull , and just a bad rumor.

[larry]

I wonder if they would keep CDMA or GSM as the technology if they do go through with this merger. I would guess GSM since T-Mobile has a larger network.

[Etorres777]

Originally Posted by lbmike212 I certainly hope not!! If this ever comes to pass, I'm out. I like T-Mobile. I do NOT want Alltel or another CDMA carrier. This is hopefully bull , and just a bad rumor.

Agreed, I HATE ALLTEL, I REALLY, REALLY, REALLY DESPISE ALLTEL...

[bobolito]

Originally Posted by larry I wonder if they would keep CDMA or GSM as the technology if they do go through with this merger. I would guess GSM since T-Mobile has a larger network.

It has its good and bad things both ways.

Can you imagine Alltel going GSM? That means all their CDMA 800 assets will become GSM and GSM will finally have good coverage in many areas of the south (NC and SC) where GSM is limited to only 1900Mhz. However, it would be bad in areas like FL where Verizon and Sprint rely on Alltel for roaming. GSM is already very strong in FL.

Now for the other side of the coin:

Can you imagine all of T-Mobile's network being converted to CDMA? That means we will only have one national GSM competitor. That means Cingular would become the monopoly of roaming revenue for regional GSM carriers and that's not good news.

Either way, it's a bad combination. Hope it never happens.

[Etorres777]

Originally Posted by bobolito It has its good and bad things both ways. Can you imagine Alltel going GSM? That means all their CDMA 800 assets will become GSM and GSM will finally have good coverage in many areas of the south (NC and SC) where GSM is limited to only 1900Mhz. However, it would be bad in areas like FL where Verizon and Sprint rely on Alltel for roaming. GSM is already very strong in FL.

I prefer this side of the coin.

[TKR]

Originally Posted by Dogma They may both be using CDMA, but Alltel is 800 MHz and Sprint is 1900 MHz.....

Not for long. Sprint will also be non-cellular 800 when they start deploying CDMA on the former NEXTEL SMRS frequencies.

[MOTOhooligan]

Originally Posted by Etorres777 Agreed, I HATE ALLTEL, I REALLY, REALLY, REALLY DESPISE ALLTEL...

Easy Chief, as soon as they complete the WWC deal, I'll work for Alltel... you don't hate me, do you?

For some reason, I just can't see AllT-Mobile being a reality... something about it just doesn't fit.

[Dogma]

Originally Posted by Etorres777 Agreed, I HATE ALLTEL, I REALLY, REALLY, REALLY DESPISE ALLTEL...

I'm not quite sure why you hate Alltel so much, I know many that think T-Mobile is worthless for coverage area. In fact I think Alltel is a better provider than T-Mobile in many markets. T-Mobile seems to have better plans/prices though, and they are probably a good choice for those that know where they cover sufficiently and are satisfied with the areas.

You probably don't need to worry though, I find this an unlikely merger.

[Airb330]

Alltel sucks so bad in Myrtle Beach (poor network sound, coverage, etc) I would never consider them anywhere. It's sad when GSM 1900 far exceeds CDMA 850 even in the dead middle of nowhere SC/NC.

[MOTOhooligan]

Originally Posted by Airb330 It's sad when GSM 1900 far exceeds CDMA 850 even in the dead middle of nowhere SC/NC.

Yes, that is sad.

[dlnester]

Rancid...

Wouldn't you be working for whoever takes over the WWC license sites in Kansas? Possibily Verizon? (I hope) instead of Alltel?

[MOTOhooligan]

Originally Posted by dlnester Rancid... Wouldn't you be working for whoever takes over the WWC license sites in Kansas? Possibily Verizon? (I hope) instead of Alltel?

Nope, the call center goes to Alltel. I have heard and read that they treat their employees really well. As long as they treat me as well as WWC did, I should be fine.

[azcellphonejunkie]

Originally Posted by rancidhooligan Nope, the call center goes to Alltel. I have heard and read that they treat their employees really well. As long as they treat me as well as WWC did, I should be fine.

They have a regional office here in Phoenix and I have talked with people there before. They say that Alltel is a good place to be!

[Andy]

Alltel and T-Mobile would be a bad thing. It would also be a pricy network integration whether they change everything to GSM or CDMA; I just don't think it's gonna happen.

[agentHibby]

If this merger for WWC at about 6 billion is a hit, how is Alltel going to do 25-30+ billion for T-Mobile USA. They would have to sell tons of things, and still be up to there knees in debt.

If T-Mobile USA is going to be bought it will probably be a cable company like Comcast or Cox. Or another international wireless provider like NTT Docomo.

[azcellphonejunkie]

Originally Posted by Andy84094 Alltel and T-Mobile would be a bad thing. It would also be a pricy network integration whether they change everything to GSM or CDMA; I just don't think it's gonna happen.

But look at Sprint/Nextel, that is going to be a pricey venture as well Sorry just had to be devil's advocate on that...

[Andy]

Originally Posted by azcellphonejunkie But look at Sprint/Nextel, that is going to be a pricey venture as well Sorry just had to be devil's advocate on that...

That's true. It is going to be very hard and expensive. I guess we'll see

[Dogma]

Originally Posted by azcellphonejunkie But look at Sprint/Nextel, that is going to be a pricey venture as well Sorry just had to be devil's advocate on that...

I think the diff lies in the fact that either Sprint or Nextel have a little more muscle in buying power than Alltel. Sprint freed up a large chunk of cash when they sold all their towers. I know Sprint is basically "buying" Nextel, but the merger aspect also helps the two companies when they are dealing with converging the two technologies.

[bobolito]

Originally Posted by Andy84094 That's true. It is going to be very hard and expensive. I guess we'll see

....especially when all the affiliates are now sueing them from both Nextel and Sprint sides.

[larry]

Alltel/T-Mobile would once again eliminate more competition and possibily drive up prices.

[Dogma]

Originally Posted by bobolito ....especially when all the affiliates are now sueing them from both Nextel and Sprint sides.

The affiliates sueing is basically protocol so they get the $ they want when Sprint and NExtel are forced to buy them out.

[Andy]

Originally Posted by larry Alltel/T-Mobile would once again eliminate more competition and possibily drive up prices.

The same can be said about Sprint/Nextel though.

[hillbilly44]

You might want to think about T-Mobile (U.S.) selling to Vodaphone and Vodaphone selling their stake in Verizon.

[MOTOhooligan]

Originally Posted by hillbilly44 You might want to think about T-Mobile (U.S.) selling to Vodaphone and Vodaphone selling their stake in Verizon.

I think that was more rumor than anything else. I haven't heard anything lately about Vodaphone buying T-Mobile US.