Verizon Wireless wants to serve new markets that it does not currently serve.  Alltel serves those markets.  Idea.  Buy up Alltel.  That’s exactly what Verizon Wireless did for the tidy sum of $28 billion which includes Alltel’s debt.

The transaction is set to be concluded be the end of the year but the future of Alltel as it stands today remains to be seen.  No doubt, Verizon Wireless will be taking over a majority, if not all of Alltel’s current operations.  I leave you to decide if that is a good thing or a bad thing.

Alltel’s current CEO will remain in his present position until the deal is concluded but nothing has been said beyond that.  Of course, Verizon is saying this is a win-win for both sides.  It gets customers that it did not have and Alltel customers get services they did not have before.

According to Yahoo News, Alltel customers will get the benefit of services that are offered to Verizon customers such as over-the-air downloadable music from a three million song library and nationwide network coverage.

Lowell McAdam and Verizon Wireless CEO said,

"This move will create an enhanced platform of network coverage, spectrum and customer care to better serve the growing needs of both Alltel and Verizon Wireless customers for reliable basic and advanced broadband wireless services."

Most of Alltel’s 13 million customers are in 57 mostly rural markets that Verizon currently does not reach.  Once on Verizon’s service, Alltel customers will be on their way to getting the benefits of LTE (aka 4G) network services over the next few years.

Verizon and Alltel expect a seamless transition for Alltel customers because both companies use similar network technologies and no problems are expected in operating the larger network.  Verizon customers will also get the benefit of a slightly expanded coverage area where service may not have been previously available.

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Entry was posted on Thursday, June 5th, 2008 at 1:27 pm under Cell phones, Technology, Uncategorized.  Print This Post

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