Verizon Announces Alltel Buyout for $28.1 Billion

Verizon Wireless announced today their plans to purchase CDMA competitor Alltell Wireless for a reported sum of $28.1 Billion dollars, plus the debt acquired through the merger. The move will create the largest U.S. based cellular provider, while bringing new calling areas to both Verizon and Alltel customers

Verizon officials expect the merger to be approved and finalized by the end of 2008. The merger will not only signal a change in the top carrier from AT&T Wireless with 71 million customers to Verizon Wireless, but will also give Verizon access to many rural areas in 57 markets occupied by Alltel Wireless, areas in which Verizon Wireless has paid high roaming fees, or cut off service completely to their customer base.

The move will also allow Verizon and Alltel customers to use service in each companies calling areas without paying roaming fees. Once approved by the FCC and other government agencies the merger will also signal a change in the top carrier technology, currently AT&T run their GSM networks in the United States, a technology also used by T-Mobile USA. Verizon will become the number one carrier and will provide their service via the CDMA cellular technology.




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