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Verizon to buy Alltel for $28.1 Billion

Discussion in 'Wireless News' started by Shockwave13, Jun 4, 2008.

  1. AnthroMatt

    AnthroMatt Big Meanie
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    Re: Verizon to Buy Alltel After All

    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?
     
  2. hank424

    hank424 Junior Member
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    Re: Verizon in talks to buy ALLTEL

    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….:rolleyes:
     
  3. spleck

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    Re: Verizon to Buy Alltel After All

    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!
     
  4. spleck

    spleck Tool
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    Re: Verizon in talks to buy ALLTEL

    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?
     
  5. AnthroMatt

    AnthroMatt Big Meanie
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    Re: Verizon to Buy Alltel After All

    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.
     
  6. UFO

    UFO Bronze Senior Member
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    Re: Verizon in talks to buy ALLTEL

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

    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.
     
  7. coalminer

    coalminer Senior Member
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    Re: Verizon in talks to buy ALLTEL


    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!!!!
     
  8. KyleAndMelissa22

    KyleAndMelissa22 Woot Woot, Splat !!!
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    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?
     
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  9. AnthroMatt

    AnthroMatt Big Meanie
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    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?
     
  10. KyleAndMelissa22

    KyleAndMelissa22 Woot Woot, Splat !!!
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    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.
     
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  11. AnthroMatt

    AnthroMatt Big Meanie
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    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
     
  12. T Sizzles

    T Sizzles Senior Member
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    Re: Verizon to Buy Alltel After All

    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.
     
  13. M in LA

    M in LA Mobile 28 Years Plus
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    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.
     
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  14. guy2

    guy2 Senior Member
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  15. RadioFoneGuy

    RadioFoneGuy Powered by HTC FUZE
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    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?
     
  16. guy2

    guy2 Senior Member
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  17. larry

    larry Sprint loyalist and former mod
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    Re: Verizon to Buy Alltel After All

    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.
     
  18. RJB

    RJB Gold Senior Member
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  19. jimbo

    jimbo Member
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    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
     
  20. R11290

    R11290 Junior Member
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    Well, I don't really like it. If I had wanted to join VZW I would have done it on my own accord. I guess I can just watch and see what happens.
     
  21. RJB

    RJB Gold Senior Member
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    Great info here thanks for taking the time to find this.
     
  22. RadioFoneGuy

    RadioFoneGuy Powered by HTC FUZE
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    Having to much Spectrum in a market is still a concern of the FCC, not the highlights I took from the FCC comments after the AT&T approval of Dobson.

    Link http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-196A2.doc


    I must dissent, however, to the order’s dramatic change to the initial spectrum screen used in our case-by-case competitive analysis of wireless transactions in the post-spectrum cap world. When we moved away from the spectrum cap’s bright-line test, the Commission committed to employing a multi-factor, case-by-case analysis that insured, among other things, that the Commission took a hard look at markets in which a merged entity would have excessive spectrum holdings. Up until today’s decision, the initial spectrum screen flagged for more detailed Commission review any market in which the merged entity would hold 70 megahertz, which represents approximately one-third of the existing 200 megahertz of spectrum suitable for mobile telephony purposes. This initial screen recognizes that spectrum is a publicly owned resource and is both a critical market input and significant barrier to entry. It is therefore not surprising that Congress gave the Commission very specific responsibilities to promote competition, the efficient and intensive use of spectrum, and diverse control of spectrum by a wide variety of entities. Today’s decision appears to ignore those Congressional directives, however, and radically inflates the screen to 95 megahertz – in essence, finding that there is nothing per se problematic from a competitive standpoint with a single entity holding up to 94 megahertz of spectrum in a given market. This sets a truly dangerous precedent.

    In the Commission’s rush to increase the screen’s denominator to 280 megahertz by including 80 megahertz of commercial 700 MHz spectrum
     
  23. PTCO911

    PTCO911 Junior Member
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    Bottom line, I truly believe the Alltel sale to Verizon sucks. Alltel provides excellent service in my area and the plan my wife and I have provides excellent minutes and perks (my circile). Alltel also has an excellent overseas calling plan (mother-in-law is in Germany).

    Going further, the UIs don't have the sucky red bars, and Bluetooth functionality isnt watered down and allows OBEX.

    For me this will be a lose-lose prospect.:mad:
     
  24. KyleAndMelissa22

    KyleAndMelissa22 Woot Woot, Splat !!!
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    I agree, in my area where VZW & Alltel overlap, some people I know moved to Alltel to get away from Verizon.
    I guess theres just no hiding from them.

    Hopefully they keep the Alltel PRL's and don't charge to roam on Sprint.
    Do they charge based on billing, or by the Sprint SIDs in the PRL (which is free roam for me in the PRL.)
    I guess I'll never dial *228 ever again if Verizon decides to Neg Sprint.



    So I guess we can keep our Alltel phones, if Verizon says what's quoted above...?
     
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  25. cowboytn

    cowboytn New Member

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    Re: Verizon in Talks with Alltel?

    I agree with you this will make verizon larger than at&t
     
  26. RJB

    RJB Gold Senior Member
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    I would think yes you would be able to keep your phone. Remember though this will take some time so I think for at least a year or even a couple years I would not worry to much. Also nothing is set in stone yet.
     
  27. army1

    army1 Banned
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    i agreed, i just left att because of all the problems,
    since the switch, and now here i go again.
     
  28. army1

    army1 Banned
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    anyone have the email or phone number for the fcc?
    it's time to protest.
     
  29. KyleAndMelissa22

    KyleAndMelissa22 Woot Woot, Splat !!!
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    1-888-CALL-FCC. That should do it.
    (1-888-225-5322)
     
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  30. T Sizzles

    T Sizzles Senior Member
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    Re: Verizon to Buy Alltel After All

    I don't think they'll change, as in go up in price. The FCC and Sprint's lawyers would be on Verizon's ___ the second they did it.
     

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