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story category FCC Approves Clearwire, Alltel Deals
Also approves use of white space spectrum....
05:35PM Tuesday Nov 04 2008 by Karl Bode
tags: fcc · business · wireless
The FCC today gave approval to both the Clearwire merger (Associated Press), as well as approving Verizon's acquisition of Alltel (Reuters). The former decision approves the creation of a new national mobile WiMax company that fuses the assets of Sprint XOHM and Clearwire. The latter decision makes Verizon Wireless the largest wireless phone company in the United States. According to CNET, negotiations between commissioners held up today's FCC meeting for more than four hours, as Democrats aired concerns about the new Verizon Wireless having too much power over roaming charges. The FCC also today voted to approve the use of white space spectrum for wireless broadband delivery.

Related:
  1. FCC Poised To Approve White Space Broadband
  2. Clearwire CEO: FCC Approval Would Be 'Good Policy.'
  3. FCC's Martin Praises Self For Non-Existent Network Openness
  4. FCC To Vote On Free National Wireless Broadband
  5. White House Opposes Free Wireless Broadband Plan
  6. FCC Cancels Vote On Nationwide Free Wireless
  7. Martin: Chances Of Free Wireless Plan 'Dim'
  8. Martin Pulls Smut Filters From Wireless Plan
Forums » FCC Approves Clearwire, Alltel Deals
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ropeguru
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Hollywood, FL
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Another step

closer to a full telecom monopoly. This time it will be one, or maybe two, companies for all your telecom needs. Wired and wireless.

Simba7

join:2003-03-24
Billings, MT

Re: Another step

Yep.. We're officially boned.

TK Junk Mail
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edit:
November 4th, @06:45PM

Clearwire merger waiting on shareholder OK...

The Clearwire shareholders have to OK this on Nov 20, but I assume that will most likely be a given. I think very few would vote against it.

FCC News release.

Sprint agreed to give up USF payments over a 5 yr period to gain approval.
The Commission conditioned its approval of this transaction on Sprint Nextel’s compliance with a voluntary commitment to phase out its requests for federal high-cost universal service support over a five-year transition period

TK Junk Mail
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edit:
November 4th, @07:06PM

White Space devices will have 1 hurdle before use


Martin said
, any device offered by a technology company for use on the white spaces will have to go through a "rigorous certification process."
The big question is how rigorous will the certification process really be given the size of the companies pushing to use these new devices.

Here is the news release from the FCC explaining their decision:
»hraunfoss.fcc.gov/edocs_public/a···66A1.pdf

This part will be the controversial part and the one the NAB really will be PO'd over:
The Commission also will permit certification of devices that do not include the
geolocation and data base access capabilities, and instead rely solely on spectrum sensing to
avoid causing harmful interference
, subject to a much more rigorous approval process.
And wireless microphone vendor Shure was upset at the vote as well: »www.marketwatch.com/news/story/S···62522E3}

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ArthurS
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Hamilton, ON

Re: White Space devices will have 1 hurdle before use

said by TK Junk Mail See Profile :


Martin said
, any device offered by a technology company for use on the white spaces will have to go through a "rigorous certification process."
The big question is how rigorous will the certification process really be given the size of the companies pushing to use these new devices.

Here is the news release from the FCC explaining their decision:
»hraunfoss.fcc.gov/edocs_public/a···66A1.pdf

This part will be the controversial part and the one the NAB really will be PO'd over:
The Commission also will permit certification of devices that do not include the
geolocation and data base access capabilities, and instead rely solely on spectrum sensing to
avoid causing harmful interference
, subject to a much more rigorous approval process.
Let's hope the "rigorous approval process" is not influenced by big money, but rather is staffed by competent engineers who are unbiased! Quite frankly I'm not holding my breath! Another bureaucratic mess in the making...
voipdabbler

join:2006-04-27
Kalispell, MT

How many areas may be left without cellular service?

There are significant areas being divested in markets that aren't seen aa profitable--both due to number of people and statistical data reflecting lower median incomes, i.e., more rural states. In this economic climate, rural carriers, who are hard-pressed to get financing in the best of times, are going to be facing more hurdles than normal and most likely aren't going to be able to buy the assets Verizon wants to dump. Other big carriers, which won spectrum rights in many of these areas in federal auctions several years ago, haven't established service because they don't see a level of profit that they want. So, the question I would put to the FCC is just how many areas will be left with no cellular coverage once the divestiture date is reached and there are no buyers lined up wanting these assets. Thank god, no matter who wins the election Kevin Martin will be out. I suspect in future, the FCC is going to have to create regional licensing blocks that incorporate rural states with those that have several major metropolitan areas in an effort to re-establish nationwide cellular coverage once they wake up at the wheel and realize they're just approved actions this year that will allow the rollback on both national cellular coverage and broadband (proposed sale of TW assets and Comcast's announced desire to divest itself of "less profitable, non-urban markets."

RARPSL

join:1999-12-08
Suffern, NY

Re: How many areas may be left without cellular service?

said by voipdabbler See Profile :

Other big carriers, which won spectrum rights in many of these areas in federal auctions several years ago, haven't established service because they don't see a level of profit that they want.
I feel that these auctions should carry a "Use it or Lose it" requirement to prevent this type of bidding high so you can warehouse the rights and prevent others who can use them from getting them. Much of these rights were/are purchased NOT with the intent of actual use but just to prevent them from being used by a potential competitor. Buying the rights without intent to use can be a good deal in many cases since it keeps them unavailable to others who can cut into your profits (it is a one time charge that can be amortized).
voipdabbler

join:2006-04-27
Kalispell, MT

Re: How many areas may be left without cellular service?

RARPSL,

I couldn't agree with you more. I was still living and working (federal legislative issues) in DC when the auctions took place. Congress was just interested in raising money--they could have cared less about long-term policy and national security implications. (Anyone who thinks critical infrastructures don't have national security implications is being very short-sighted.)

My biggest fear is that future Congresses, as they attempt to find more money to spend rather than cutting spending, may be tempted to look at the spectrum auctions as precedent and begin auctioning off natural resources to the highest bidder (including foreign soverign funds). I wish pay-as-you-go rules would be enacted again, but I won't hold my breath. Congress is addicted to spending; they just can't cut.

TK Junk Mail
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Who will buy the 2 mil customers Verizon/Alltel must drop?

Verizon/Alltel had to jettison 105 markets and 2 million customers to get approval. Who will buy those 2 million customers? Sprint?

The combined entity also had to agree to honor Alltel roaming agreements with other carriers(though not named, that is mostly Sprint) for 5 years.

FCC News Release
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iansltx

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Re: Who will buy the 2 mil customers Verizon/Alltel must drop?

Lemme guess...AT&T. Yeah, sounds about right. Integration nightmare? Yes, but since nobody else is available to buy AT&T will get a bargain basement price...T-Mobile might buy but I wouldn't count on it. Sprint would be cool but not bloody likely.

So we're left with Verizon as the biggest wireless carrier and 2nd largest landline carrier, and AT&T as the largest wireline carrier and the 2nd largest wireless carrier. Third and fourth on wireless are wireless-only Sprint and T-Mobile. Third and fourth on wired are Qwest and I think Windstream, both wired-only. T-Mo and Sprint are gonna stay wireless-only.

I'll bet the next step Verizon is going to make is to buy Qwest, spinning off the rural areas, probably to FairPoint again. If not to FairPoint, probably Windstream. For customers boughtby Verizon you get better speeds and bundling deals. For those spun off, better hope it's Windstream; fairPoint obviously doesn't know how to run a network.

End result: VZ and ATT cover "huge tracts of land" on both wireline and wireless, and if they feel like it undercut Sprint and T-Mobile on pricing so all subscribers flow to VZ and T. Or just start charging more for roaming, forcing Sprint and T-Mobile to pass the cost on.

So we end up with VZ and T as the "telco" branch, and ClearWire being the wireless arm of Comcast and TWC. Non-metro areas get the smaller companies, and Cox is...um...building out an LTE network. In big metro areas, a united CricKet\MetroPCS will be a third option for wireless cell phone service once Sprint and T-Mobile fade...ClearWire will be data-focused...and we have dual standards for both wireline and wireless: fiber\copper vs. coax, LTE vs. WiMAX...

wifi4milez
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Re: Who will buy the 2 mil customers Verizon/Alltel must drop?

said by iansltx See Profile :

Lemme guess...AT&T. Yeah, sounds about right. Integration nightmare? Yes, but since nobody else is available to buy AT&T will get a bargain basement price...T-Mobile might buy but I wouldn't count on it. Sprint would be cool but not bloody likely.
There is no way it will be either Tmo or Att. Both those carriers use GSM, whereas Verizon and Alltel use CDMA. The only "big carrier" option would be Sprint, although possibly a smaller carrier such a Cricket might scoop them up.
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EPS

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Re: Who will buy the 2 mil customers Verizon/Alltel must drop?

I don't know about that. The big carriers have been perfectly willing to acquire rural carriers of the wrong type (for example, wasn't Unicel GSM?).
iansltx

join:2007-02-19
Fredericksburg, TX

Re: Who will buy the 2 mil customers Verizon/Alltel must drop?

Unicel was\is GSM. Also, CricKet is a metro-area carrier. Doubt they'd snatch up the rural assets that VZ'll be selling off.

wifi4milez
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said by EPS See Profile :

I don't know about that. The big carriers have been perfectly willing to acquire rural carriers of the wrong type (for example, wasn't Unicel GSM?).
Yes, however Verizon is ripping out all the GSM equipment and switching the customers over to CDMA. They literally bought the end users contracts and are migrating the customers over. Thats a fairly unusual practice, and the most likely buyer will have a compatible network. The current economic climate also makes it unlikely that a company will spend millions more to tear everything out once a purchase has been made.
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Smile__
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US Cellular would be a good one..

opus74
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Re: Who will buy the 2 mil customers Verizon/Alltel must drop?

said by Smile__ See Profile :

US Cellular would be a good one..
Yes, it would. It would extend their coverage back down to the Kentucky border, where they were before they traded areas to BellSouth Cellular in 1988.
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hottboiinnc
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Re: Who will buy the 2 mil customers Verizon/Alltel must drop?

US Cellular, Metro PCS, Revol, and Leap. But Leap/Cricket won't take over Ohio since they sold off all of Ohio except Cinci several years ago to Revol.

I could see Revol picking up Ohio and Indy and MI since they have a good section of the state covered now.

Smile__
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edit:
November 4th, @11:36PM

Re: Who will buy the 2 mil customers Verizon/Alltel must drop?

You sure that was Leap that sold off to Revol? I thought it was someone else.. Northcoast PCS??.. Not sure who that was..

Found it.. »en.wikipedia.org/wiki/Northcoast_PCS
Sammer

join:2005-12-22
Pittsburgh, PA


edit:
November 5th, @01:26AM

Re: Who will buy the 2 mil customers Verizon/Alltel must drop?

No one will buy all 2 million customers in the current economic climate but it will probably be split up amongst several carriers including AT&T who will buy if the price is low enough just to pick up the roaming contracts. After all AT&T can afford to self-finance, buy low, make some some money off the roaming contracts, subcontract with someone else (Sprint?) to provide service to the existing customers, then when the economy improves sell high.
hottboiinnc
ME

join:2003-10-15
Toledo, OH

Re: Who will buy the 2 mil customers Verizon/Alltel must drop?

MetroPCS, Revol, Leap and US Wireless will most likely pick up those customers. Revol is the only privately held company out of all 3 and could afford to do it without a big deal like ATT.
hottboiinnc
ME

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edit:
November 5th, @11:09AM

Leap sold their Toledo Market to Revol...Northcost PCS is actually Revol just moved to a new city and name changed. I was a Cricket customer when they did the change over to Revol. was a nightmare with that because LEAP's system sucked.

Northcoast owned a large amount of PCS licenses over the US that covered about 47 million POPs during the US government's D- E- and F-block PCS auctions. Unfortuantly to cell phone enthusiasts, only the Cleveland license was built out and provided service. At some point in its history, it sold its Canton spectrum. The rest of the licenses not used by Revol were sold to Verizon Wireless.

thats the part that Revol and Northcost are the same company. and picked up Cricket Toledo. Cricket only has service in Cinci/ Dayton area now in Ohio. But will roam nationwide if your plan has that but roams on Sprint and VZW.

avd706
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Great Neck, NY

Chad....

your still a ding dong.

hayabusa3303
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Re: Chad....

i guess chad is going to kiss the vz guy now?

opus74
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Layoffs

Let's not forget the projected 1800 to 2200 layoffs predicted in just Little Rock alone (Alltel's HQ). Not counting the rest of the country.

hottboiinnc
ME

join:2003-10-15
Toledo, OH
·buckeye cable

Re: Layoffs

Those in the south will get laid off and the jobs will move to the Dublin Ohio call center which is one of if not the biggest VZW call center. Which formally was Airtouch and Dobson's Cellular One. I feel sorry for those employees especailly if they were there during the VZW and Dobson buy out like my current roommate was.
slckusr
Premium
join:2003-03-17
Maumee, OH

Re: Layoffs

/shrug

hopefully we get a good compensation package
hottboiinnc
ME

join:2003-10-15
Toledo, OH

Re: Layoffs

I doubt the Maumee office will go anywhere. Its the district office for Alltel. Will prolly move VZW in there.
shakazulu

join:2001-06-20
99999
U work for alltel too ?, we haven't heard anything yet in the phoenix call center about the layoffs. Noticed a lot of techies are moving over to ATS
hottboiinnc
ME

join:2003-10-15
Toledo, OH
·buckeye cable

Re: Layoffs

Nope i don't work for ALltel. I just know the industry. Plus Ohio has several large call centers here for companies.

Former GTE's regional office and call center was based in Marion Ohio, now the office part was sold, and the call center is just VZ East and West. Cellular One/Airtouch/VZW's call cente is in Dublin, Ohio (Columbus) and Alltel has regional office and some what of a call center in Maumee (Toledo). Besides TWC has several major call centers for their entire foot print all over Ohio.
stukwithsat

join:2009-01-05
Long Beach, CA

Question About Alltel-Verizon

I'm getting ready to subscribe to Alltel wireless with a USB modem for rural internet. I don't suppose I'll connect to more than maybe Edge for a moderate speed... but right now Alltel is offering an uncapped download package for $60 monthly, which will grandfather the no-cap feature in via the Alltel contract when Verizon starts moving the furniture around.
But how much of the forum thinks this is a good idea?
How many of you think I'll get to keep the uncapped clause and the connectivity speed that I'll start out at after Verizon starts its 'shuffle and pitch' routine?
I'm on the only other game in town right now which is a 333kb download sat system capped for bandwidth.
Thanks
Forums » FCC Approves Clearwire, Alltel Deals


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