Search:  

 
 
   News
newer
story category Alltel Verizon Merger Gets DOJ Approval
Now waiting on FCC vote on November 4
11:33AM Friday Oct 31 2008 by Karl Bode
tags: business · wireless · telco · Verizon Wireless Broadband · Alltel Axess
Tipped by Revcb See Profile
The Justice Department has given their approval for Verizon's planned $28 billion acquisition of Alltel, though as expected, the deal will require Verizon to offload some network assets in 22 states where the carriers overlap. The FCC will now vote on the acquisition November 4, and FCC chief Kevin Martin is expected to require that Verizon sell operations in five additional rural areas to "prevent the carrier from gaining too much market power," according to Bloomberg. Martin traditionally is only pro-consumer when it looks good, so it's likely these were markets Verizon cared little about anyway. Consumer advocates meanwhile see no consumer benefit to the deal.

Related:
  1. Verizon Sues Alltel For False Advertising
  2. Verizon Wireless Announces Unlimited Calling
  3. Verizon Wireless Preps 'Open Access' Tier
  4. Verizon CEO Laughs Off Wireless Price War
  5. Verizon In Talks To Buy Alltel
  6. J.D. Power Ranks Wireless Call Quality
  7. Verizon Says Alltel Deal On Schedule
  8. Verizon Aims for LTE Deployment in 2009
Forums » Alltel Verizon Merger Gets DOJ Approval
view: topics flat text 
Post a:

TK Junk Mail
Go ahead, make my day
Premium
join:2002-03-03
Margate City, NJ
clubs:
·Comcast

Will Sprint be buying up all the divested areas??

The divestitures required cover the entire states of North Dakota and South Dakota; large portions of the states of Colorado, Georgia, Kansas, Montana, South Carolina, Utah and Wyoming; and portions of the states of Alabama, Arizona, California, Idaho, Illinois, Iowa, Minnesota, Nebraska, Nevada, New Mexico, North Carolina, Ohio and Virginia.

I wonder who will jump in and buy the wireless spectrum in all these areas? AT&T? T-Mobile? Because both of those have GSM based systems and the areas being sold are on CDMA.

The only one left to buy these areas would be Sprint, who is using the same technology. Does Sprint have the money right now to buy them up and at what price.
--
My BLOG .. .. Internet News .. .. My Web Page
Ask yourself one question: 'Do I feel lucky?' Well, do ya punk?

baineschile

join:2008-05-10
Sterling Heights, MI

Re: Will Sprint be buying up all the divested areas??

The only time you should be using "sprint" and "buying" in the same sentence would be..."TMobile is planning on buying sprint this spring"

jmn1207
Premium
join:2000-07-19
Reston, VA
·Verizon FIOS

Re: Will Sprint be buying up all the divested areas??

said by baineschile See Profile :

The only time you should be using "sprint" and "buying" in the same sentence would be..."TMobile is planning on buying sprint this spring"
Sprint has been excellent for me here in DC and the New York metro area. Best plans by a mile, and the service is fast and reliable for me. Did you catch the latest news on their greatly improved customer service?

Sprint is making a comeback.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
·RoadRunner Cable
·DSL EXTREME
·DSL EXTREME

Re: Will Sprint be buying up all the divested areas??

Sprint may have 'plans' to make a comeback, however, it needs some investment funding to do much. Sprint has more debt than they have cash. While their market cap is 40B, their credit rating, the economy, and the fact that Sprint is spending a lot of resources on Xohm, they have little leverage. They have chosen to keep iDEN... that was worth at least 'something'.

»finance.yahoo.com/q?s=S
»finance.yahoo.com/q/ks?s=S

Profitability
Profit Margin (ttm): -78.99%
Operating Margin (ttm): 1.13%

Management Effectiveness
Return on Assets (ttm): 0.34%
Return on Equity (ttm): -82.80%

Balance Sheet
Total Cash (mrq): 3.50B
Total Cash Per Share (mrq): 1.227
Total Debt (mrq): 22.98B
Total Debt/Equity (mrq): 1.074
Current Ratio (mrq): 1.25
Book Value Per Share (mrq): 7.504
Cash Flow Statement
Operating Cash Flow (ttm): 8.00B
Levered Free Cash Flow (ttm): 1.98B

jmn1207
Premium
join:2000-07-19
Reston, VA

Re: Will Sprint be buying up all the divested areas??

The US has WAY more debt than cash. I think we will make a comeback, too. Call me an optimist.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
·RoadRunner Cable
·DSL EXTREME
·DSL EXTREME

Re: Will Sprint be buying up all the divested areas??

While that is true... we're not out to purchase another country tomorrow. We'll be paying for the interest on that debt over the next quarter century. If Sprint (or another company) is out to purchase bits of Alltel, they would be doing it 'now', and not waiting for the 'comeback' to have enough money/financial backing to go and purchase more. Sprint needs to rid itself of some assets to purchase anything.

- iDEN, looks like its sticking around
- They just recently sold towers (that helps)

Time to clean house.
--
Canada = Hollywood North

S_engineer

join:2007-05-16
Chicago, IL

US cellular could take a few of the midwest markets. I've had them all, and they've been the most reliable in and around chi-town.

BTW...your joking about sprint right?....they've not only burned too many bridges for a comeback, they did it with a scorched earth policy!

If your working for them, I suggest other employment
--
"For duty and humanity!"
- Moe Larry and Curly (MEN IN BLACK, 1934)...These are the guys we have in Congress

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
·RoadRunner Cable
·DSL EXTREME
·DSL EXTREME

Re: Will Sprint be buying up all the divested areas??

There are a few rural providers out there in the midwest which could/should work well. I hope they'd split the GSM/CDMA up on those that are sold.

GSM (Alltel had GSM too): Iowa Wireless, Viaero Wireless, Commnet.

CDMA - Whatever rural carrier is left

As mentioned before... who can get investment $$$ to purchase pieces of Alltel's network.
--
Canada = Hollywood North

S_engineer

join:2007-05-16
Chicago, IL

Re: Will Sprint be buying up all the divested areas??

Your right about the cash for investment.
Well maybe the govt can bailout the Wireless carrier businesses with billions so they too can make acquisitions and pay themselves collectively billions in bonuses
--
"For duty and humanity!"
- Moe Larry and Curly (MEN IN BLACK, 1934)...These are the guys we have in Congress

jmn1207
Premium
join:2000-07-19
Reston, VA
·Verizon FIOS

said by S_engineer See Profile :

If your working for them, I suggest other employment
I would never work for a large corporation again. I learned my lesson after working for 3M's Telecom Division. Hate the impersonal atmosphere of it all and the enormous waste of resources. If a company has a stock symbol, they won't get my resume. I left a company when they decided to go public. I'd do it again, too. Don't want any part of that anymore, and I am much happier because of this decision.

Profitability is one thing, growing is another. Too many times I see quality disappear as once great businesses feel compelled to spread out. Oftentimes this growth destroys the very ideals that made them excel in the first place. When a company is in business solely to grow, which many undoubtedly are, I keep my distance.

I'd rather create and sell a couple of paintings each week than have a press stamp out hundreds of them for a discount and maximum profits. To each his own, I suppose; but I know what makes me happy.

StarFish267

join:2005-11-25
Fort Worth, TX
I thought AT&T owned US Cellular now?

tyler

@comcast.net

Re: Will Sprint be buying up all the divested areas??

said by StarFish267 See Profile :

I thought AT&T owned US Cellular now?
thats cellular one your thinking of.

justtoletuknow

@verizon.com
I guess u didnt know that the areas u just mentioned Sprint customers are using VZ towers/cell sites for covereage. So when u say yeah spring for their svc...u actually saying yeah VZ
DarnellP

join:2004-10-12
Las Vegas, NV

Re: Will Sprint be buying up all the divested areas??

said by justtoletuknow :

I guess u didnt know that the areas u just mentioned Sprint customers are using VZ towers/cell sites for covereage. So when u say yeah spring for their svc...u actually saying yeah VZ
Huh? What exactly are you trying to say?

jmn1207
Premium
join:2000-07-19
Reston, VA
·Verizon FIOS

said by justtoletuknow :

I guess u didnt know that the areas u just mentioned Sprint customers are using VZ towers/cell sites for covereage. So when u say yeah spring for their svc...u actually saying yeah VZ
Only for EV-DO, not voice. We still can't hear you now.

Actually, voice quality works extremely well for me, I just don't happen to use it too often.
bgreen965

join:2005-04-26
Savannah, GA

I think Alltel has GSM up on a lot of their towers to bring in additional roaming revenue. So a buy by a GSM company would not be out of the question. Plus AT&T could desperately use some 800Mhz spectrum in some of these areas to help with the deployment of reliable 3G.

The Beer
I Love It When A Plan Comes Together
Premium
join:2001-07-24
Omaha, NE
clubs:
·ViaTalk

I think this will be a good time for regional to pick some up. All depends on how desperate Verizon is to sell them.

Nebraska for example Verizon only has Omaha and Lincoln, Alltel had the entire state.

If they will sell it to them Cox has a KILLER opp to buy a next gen network and a bargain price and let Verizon keep the spectrum.

In the Dakota's I would expect to see a sale to US Cellular this makes complete sense, and they would more than likely buy. US Cellular has not invested in much 3g so I would assume sitting on some cash.

My question is do they have to give up the customers or just the networks?

That will play REALLY strange, imagine you are currently a Verizon customer and employee.

Verizon sells you to Cox, then Alltel customers become Verizon. Talk about brand confusion!

So if Obama wins expect to see a QUICK chop up of those networks! If McCain wins expect to see a long courting process.
blips

join:2001-04-17
Addison, IL

said by TK Junk Mail See Profile :

I wonder who will jump in and buy the wireless spectrum in all these areas? AT&T? T-Mobile? Because both of those have GSM based systems and the areas being sold are on CDMA.

The only one left to buy these areas would be Sprint, who is using the same technology. Does Sprint have the money right now to buy them up and at what price.
US Cellular?
hottboiinnc
ME

join:2003-10-15
Toledo, OH
You forget that Leap, MetroPCS, and Revol are CDMA carriers and could pick up what is sold off. What is in Ohio could go to Revol or MetroPCS and make them a HUGE threat to any other carrier in the state.

Rob 23

@windstream.net
Divested areas -- map »www.cellularmap.net/vzw/vzw+alltel.shtml

jmn1207
Premium
join:2000-07-19
Reston, VA
·Verizon FIOS

Sprint Roaming Agreement?

I wonder if this will have any impact on Sprint's excellent roaming agreement with Alltel and Verizon?

It's been nice having the EV-DO data available from all of Verizon's towers, as it increases my Blackberry coverage immensely. I know Sprint has an agreement with Alltel as well, but but for voice, data, and EV-DO. This was a 10 year agreement from 2006. Hopefully the agreement is binding for the duration of the term, even with this new merger.

Fox McCloud
Ron Paul Enthusiast

join:2006-07-23
·Embarq
·Sprint Mobile Broa..
·Verizon BroadbandA..

Re: Sprint Roaming Agreement?

said by jmn1207 See Profile :

I wonder if this will have any impact on Sprint's excellent roaming agreement with Alltel and Verizon?

It's been nice having the EV-DO data available from all of Verizon's towers, as it increases my Blackberry coverage immensely. I know Sprint has an agreement with Alltel as well, but but for voice, data, and EV-DO. This was a 10 year agreement from 2006. Hopefully the agreement is binding for the duration of the term, even with this new merger.
what would be even better (though I doubt it'll happen) is if Verizon extended the EVDO roaming agreement to their entire network (ie: Alltel+Verizon) to Sprint once it's all said and done, and visa-versa--with that kind of set up Sprint and Verizon+Alltel could have loose partnership where-in they could co-operate to take on AT&T.

Doubt it'll happen though.
--
"True Patriotism is more closely linked with dissent than it is to conformity and a blind desire for safety and security...I accept the definition of patriotism as that effort to resist abusive state power." -Ron Paul

jmn1207
Premium
join:2000-07-19
Reston, VA

Re: Sprint Roaming Agreement?

I believe Sprint already takes advantage of both Alltel and Verizon with EV-DO, as far as I know. Verizon can use Sprint and Sprint can use Verizon and Alltel. Obviously Verizon will be able to utilize Alltel as well, now.
xenophon

join:2007-09-17
·Sprint Mobile Broa..

Re: Sprint Roaming Agreement?

Sprint and Alltel have an EVDO roaming agreement but Verizon does not roam EVDO with anyone yet. The terms of the deal though specifically say that Verizon will honor all existing roaming agreements. I believe Sprint still has a 10 year agreement with Alltel.

jmn1207
Premium
join:2000-07-19
Reston, VA
·Verizon FIOS


edit:
October 31st, @01:59PM

Re: Sprint Roaming Agreement?

said by xenophon See Profile :

Sprint and Alltel have an EVDO roaming agreement but Verizon does not roam EVDO with anyone yet. The terms of the deal though specifically say that Verizon will honor all existing roaming agreements. I believe Sprint still has a 10 year agreement with Alltel.
Ah, that is right. Sprint has a roaming agreement for 1x with Verizon. This is good, because Sprint's Power Vision is still accessible at 1x, not just EV-DO. Sprint has the same deal with US Cellular. Nice to know things will stay the same for the duration of my plan.
Hasher

join:2000-06-19
Rocky River, OH

Merger.

So the new commercial STARTS out with CHAD.

The SCENE OPENS with CHAD lying in bed with the VERIZON guy and the rest of the crew looking on ...

the TAG LINE

"LOOKS LIKE MY CIRCLE NOW INCLUDES VERIZON"

opus74
Deep Thought
Premium
join:2002-03-04
Coello, IL
clubs:
·WildBlue

Re: Merger.

said by Hasher See Profile :

So the new commercial STARTS out with CHAD.

The SCENE OPENS with CHAD lying in bed with the VERIZON guy and the rest of the crew looking on ...

the TAG LINE

"LOOKS LIKE MY CIRCLE NOW INCLUDES VERIZON"
You forgot the verizon guy...going "can you hear me now?"....
voipdabbler

join:2006-04-27
Kalispell, MT

Divesting won't be easy.

Given the current economic climate, I think Verizon may have some problems finding buyers. Most of the markets that Verizon wants to dump aren't in highly-urban areas and, therefore, aren't of interest to the big carriers. Rural carriers are probably going to have even more hurdles in finding financing these days than their larger, urban cousins. Truthfully, don't expect GSM companies to be interested--TMobile won spectrum rights to parts of these regions several years ago and hasn't chosen to deploy the technology due to cost/profit concerns. Alltel's GSM coverage was simply for roaming agreements and probably isn't robust enough to warrant interest in purchasing those assets. I wouldn't be surprised to see yet another investment consortium going into partnership to buy some areas that may seem desirable (i.e, they can hold on to the asset for max of 12 months and then sell for profit, less likely in the markets being dumped). The interesting thing will be whether Verizon just shuts off service if they can't find buyers within a reasonable time frame. Clearly, no one, especially the FCC, cares about the affected consumers.

bofkentucky

@insightbb.com

No kentucky divestures

I guess Bluegrass Cellular in KY and Eloqui in TN are going to be surrounded and eventually absorbed into VZW. I was kind of hoping they would get a chance to break out and see some growth

/Ex Bluegrass guy

Simba7

join:2003-03-24
Billings, MT

Yep.. We're screwed..

Being an Alltel Smartphone Customer (I have an HTC PPC-6800), I've enjoyed the "My Circle" and the Unlimited Data Plans. I'm not pleased that Alltel is becoming Verizon.

If I have to switch to Verizon, all that is history. I'll be stuck with a 5Gig/Month cap (which really screws me over), I'll be using my minutes all the time due to the "My Circle" being yanked, and I'll have to deal with "them".

In my honest opinion, I feel like I'm about to get a rather huge shaft up the rectum and have it stay there permanently.

..and Verizon can call it whatever they want.. They can say that they're using divestiture to prevent them from monopolizing, but that's bullsh*t. They're destroying Alltel so they can regain their dominance and to hell with the customers.

The point is, Verizon knew about this. They already have service in those areas. Therefore, by destroying Alltel, their competition is far, far less and they can charge whatever they want. It's the consumer in the end that gets the shaft.
--
Bresnan 15M/1M|Mine[P4HT 3.2GHz,2GB RAM,2x1TB HDDs,WinXP]|Wife's[P4 2.4GHz,1GB RAM,60GB HDD,WinXP]|Router[2xP3@1GHz,640MB RAM,18GB HDD,Allied Telesyn AT-2560FX,Kingston KNE100TX,2xDigital DE504,Compaq NC3131,iPro/1000DP,Blitz BWI715,Gentoo]
voipdabbler

join:2006-04-27
Kalispell, MT

Re: Yep.. We're screwed..

Simba,

We're in one of the states that Verizon is dropping so you won't need to worry about living with Verizon's service plans--they won't be operating here. We're likely to simply see service cut off--I really don't see anyone stepping in to purchase assets in states that are mainly rural in this economic climate. Rural carriers face more hurdles for financing in normal economic times--they're going to have major problems in this economic climate. Truthfully, I was hoping that Verizon's financing would fall through and therefore kill this deal. The FCC is basically allowing thousands of rural customers to be dropped. T Mobile won spectrum rights in many of the divested areas in the federal auctions several years ago and isn't interested in developing GSM in those areas. Alltel's GSM equipment in place in some areas is simply for roaming agreements and isn't robust enough to be of interest since significant investment would be required to generate robust local service. T Mobile just doesn't see that being profitable in non-urban areas. Sprint won't be interested either, given the problems with getting financing. I just see service being cut off, consumers be damned.

jasont1273

@prserv.net

said by Simba7 See Profile :

If I have to switch to Verizon, all that is history. I'll be stuck with a 5Gig/Month cap (which really screws me over), I'll be using my minutes all the time due to the "My Circle" being yanked, and I'll have to deal with "them".
What are you doing on a PDA that sucks up over 5GB a month? I know people that play World of Warcraft on an aircard that don't use that damn much!

Kallan Dahn

@charter.com

Live Coverage of FCC Meeting

I will be covering the FCC meeting live from my blog.
If anyone would like to join, you can do so at

»cellgeek.blogspot.com/2008/10/li···ing.html

The meeting has been pushed back this morning so I am still waiting for it to begin.
Forums » Alltel Verizon Merger Gets DOJ Approval


Friday, 09-Jan 04:52:23 Terms of Use | Privacy Policy | Hosting by www.nac.net - DSL,Hosting & Co-lo | feedback | contact
over 9 years online! © 1999-2009 dslreports.com.republican-creole