Alltel sale could fetch $30 billion

Yep....that would make Sprint the most complete carrier!

CDMA + iDEN + GSM + AMPS :biggrin:

 

Nope you misunderstood. I meant I hope a group of investors buys them out instead of any of the major carriers (including Sprint).

 

you could be right and here is someone it could be :lol:

Airtouch Cellular was being boughtout by Vodafone when Airtouch was buying out Commnet Cellular

 

Larry. I realy hope this happens and I will be all for it and not for one of any other provider (from teh top 4) getting it. In all honesty I don't see any of the rest buying it as it was reported in a couple of links that an approach was made to others but no one took the bait. The claue of the company is as a whole and once it is split into parts then its value deminishes big time. I would say it would be nice if Alltel gets larger and be a major nation wide competitor against teh top 4 and hopefully it would result in more competetive plans and pricing to the consumers.

Would any one think that cell one and Alltel would make a good combo?

 

I don't know about Cell one and alltel because here in michigan Alltel covers all the same areas as cell one does, if not better. Same goes for Northern Wisconsin. They would also gain some coverage in PA, and some other states....

 

Thank you. I tried to see their coverage but every zip I out in did not work and I got soemthing about no service in the area.

 

Alltel bought out Cellular one in a few areas didn't they? Like in Inyo & Mono Counties here in CA.

 

Yeah but that was Western Wireless operating under the name Cellular One. The Cellular One in Michigan is run by Dobson.....Alltel sold the name Cellular One back, that is why there are still some operating under that name.

 

How does Cellcom keep chugging along w/o being gobbled up by someone? I know they are privately held, but you think someone would have approached them regarding a purchase.

I take it you were joking the Alltel was eyeing Cellcom??

 

Mergers and buyouts take for ever, this one could easily take a year. This may just be speculation created to inflate stocks? I would prefere the two technologies be seperated if it was me. Alltel (western wireless) uses the same technology that Cell one has and all those cell sites could be connected easily to our existing switching centers. This holds true for Cingular and TMobile at least the markets they have converted to Nortel.

I am leary on a TMobile buyout due to the 850 spectrum as Tmobile is all 1900. Good luck to Alltel regardless.

 

Is Verizon Wireless really looking to buy Alltel?

The rumor du jour is that Alltel, the largest rural mobile operator in the U.S., is up for sale. But at least two experts are split over whether the company widely mentioned as the likely buyer, Verizon Wireless, is the most logical suitor.

Rumors about a Verizon-Alltel marriage are nothing new. Two years ago, Wall Street was buzzing that the two might hook up. The rumor mill got churning again last week when Alltel executives said during the company's fourth-quarter conference call they were exploring several strategic "options." Analysts and investors on Wall Street have taken this to mean that the board of directors is looking to sell the company.

Verizon Wireless could be the most logical competitor to buy Alltel because the two companies both use the CDMA (code division multiple access) cellular technology. Sprint Nextel also uses CDMA, but many on Wall Street believe that Sprint is saddled with its own problems integrating Nextel's network. T-Mobile and AT&T's Cingular Wireless are unlikely candidates, because their networks are built using a different technology called GSM (Global System for Mobile Communications).

Albert Lin, an equities analyst with American Technology Research, said this week that this time around a merger between Alltel and Verizon Wireless makes sense on several levels. With the Alltel network and subscriber base, Verizon Wireless would become the largest mobile operator in the U.S.

But Alltel's price tag would likely be pretty hefty. A recent Reuters article estimated it could be close to $30 billion.

That's why Michael Nelson, an equities research analyst at the Stanford Group, said it's far more likely that Alltel would be bought by a private equity firm. He said that Verizon is better off waiting for the Federal Communications Commission's 700MHz spectrum auction, which is expected to get under way later this year, to buy some spectrum in rural areas and build its own network.

"Verizon has had a significant amount of success growing organically," he said. "I just don't see any reason why they would need to buy Alltel. They can build their own network for a lot less than $30 billion."

Nelson said, however, that he could see Verizon Wireless buying Alltel if the company fears it will lose the asset to a competitor. Right now, Verizon leases capacity from Alltel's network to provide service in rural regions of the country. Alltel has significant coverage throughout the Midwest and the southeastern U.S. If Sprint were to buy Alltel, Verizon would likely be forced to work with other rural carriers in those regions or build its own network in those areas.

But Nelson said he thinks the chances of that happening are pretty slim.

"Verizon is simply not a willing buyer," he said. "And Sprint is in no position to be making a move of this size right now, so it's really up to private equity."


http://news.zdnet.com/2100-1035_22-6162763.html?tag=nl.e550

 

Then VZW will be in a Bidding war w/ T-Mobile:
Deutsche Telekom on the look-out for acquisition targets
http://news.yahoo.com/s/afp/20070301/bs_afp/germanytelecomcompany;_ylt=Agk7By0O1X3BbCFJmiZk04_67rEF

 

I don't know if they would go for a $30+ Billion acquisition, with having the spend the additional money to upgrade to GSM,
Maybe they will finally go after Suncom & some other regional carriers though.

I guess they are doing like Sprint, by selling their towers & leasing them back for some additional cash. It will be interesting to see how this all pans out.

 

If I were VZW, I'd want use that possible $30B to buy out Vodafone. Adding Alltel to VZW would raise the value of Voda's 45% portion even higher.

COtech

 

I went through the first 2 pages of this thread and didn't bother to read page 3.

Now, it's my turn.

Did anyone think that the "strategic alternatives" just might be an acquisition BY Alltel? This works two ways...

FWIW, Deutsche Telekom posted a billion-dollar loss for the 4th quarter of 2006, so I'm not sure such a large acquisition would be in the cards.

DT acquiring smaller carriers around the world, this I would expect to see.

We now return you to our regularly scheduled argument.​

 

Wow, would that be a twist Alltel buying T-Mobile. I don't think T-Mobile would go for it, with the US being their main money maker. But it would be a total goof on everyone.

 

At first I was in favor of seeing T-mobile and Alltel making a deal. But after some more thought I don't want to see that happen. Alltel is Sprint best roaming provider and I'd hate to see their CDMA system converted to GSM and I bet Verizon would as well. So I don't think Verizon would let anyone else take Alltel. They would go out of their way to outbid anyone who tries. If some private (non-wireless) investor firm tries to buy them I think Verizon would be ok with that and just let it happen.

 

That's true, it would hurt Verizon & Sprint big time to loose someone like Alltel to GSM.
I think a private investment firm would be the most likely choice, just like Suncom is doing. Maybe it would be the same firm.

 

Look at what has happend in Iowa for new PRL on VZW
MidWest Wireless is officially going bye bye here in a month or two.
With that market becoming Alltel VZW is moving preferred roamer in some of those markets to US Cellular.

If VZW is going to do a buyout, it sure does not seem like it in the way roaming goes.

You will noticed that if VZW has its eye on a company it will always have their network almost as a whole as the preferred roamer. VZW has been slowly moving away from Alltel not getting closer in terms of roaming.

 

What would the advantage be to VZW buying off the interest of Voda? 45% is not a controlling interest at any rate.

 

Its funny you should bring this up. Everything I read and hear through the grapevine had Alltel warming up to Sprint & including data roaming deals. From what I hear Alltel's upper brass does not like doing business with Verizon & prefers to complete with them in overlapping markets.

 

Alltel could merge w/ T-Mobile.

 

I dont know if a GSM carrier would take on Alltel. We bought out RFB up in Michigan which was CDMA (only 1st GEN CDMA not 1X). We had to overlay the CDMA just due to being so old and not taken care of. Relaying a whole network is super expensive. Just the radios and pa's to Nortel GSM on one sectorized site is about $70,000 thats not including the BTS its self or the T-1.

A buddy I used to do contract work with did the GSM overlay for Western Wireless a few years back. Most of the GSM is side by side with the CDMA inside of Western Wireless (alltel in the plains) buildings. So I think splitting it will be tricky. So who ever buys it will remove either one of the systems.

This can be good for other carriers far as whatever technology is removed will be sold to the highest bidder so this equipment can be picked up cheaper that new and re-used.

Just say CDMA gets pitched US Cellular, VZW, Sprint or whoever whould be about to fill a higher site build quota for the year. Or if a CDMA carrier pitches the GSM vise versa.

We did the same thing. We bought a bunch of Canadian GSM when Rogers took over and retro fitted in Canada.

Worst people of would be the employee and customers in the deal. Alot of people have like to have faith in one brand and stick with it. Its to hard to stick by hind one company in the telecom industry as stuff changes to much.

Sorry about the book.

 

I just looked at my post above, I meant worst people off. Need to slow down when I type.

 

100% of the profits.

 

But you can't say anything other than 100% of the profits. Why did Voda invest in VeriZon at the outset then, eh?

 

Vodafone owned AirTouch Cellular; which with Primeco, GTE Wireless and Bell Atlantic Mobile became Verizon Wireless. Seemed like a good idea at the time, but no GSM.

COtech

 

alltel is not selling to another wireless carrier i am a employee and after a meeting in little rock let me dispel any rumors of alltel and verizon, alltel and t mobile or alltel at&t. IF alltel sells it will most likely be a cable company or investment group the names that are being tossed around are comcast and time warner. alltel does not need to sell they are functioning on their own just fine. some companies have approached alltel about what it would cost. rumor has it a decision on what is going to happen may come in april- may timeframe.

 

What does GSM have to do with it?

 

That would be awesome! I hope you turn out to be right (for all of our sakes).