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Alltel Looking To Sell

Article Comments  100+  

Mar 5, 2007, 1:24 PM   by (staff)

Alltel Wireless, the nation's fifth-largest mobile operator, has intensified its attempt to sell itself to one of the other major US carriers or simply to new owners. Alltel has recently solicited bids from AT&T, Verizon Wireless and others. Though AT&T has rebuffed Alltel's offer, Verizon is reported to still be considering it. This potential union is more likely since both carriers use CDMA technology, and Verizon has not swallowed up any major operators like Sprint or AT&T have so regulatory hurdles are not as high. Were Verizon to acquire Alltel, it would become the nation's largest wireless provider with 71 million subscribers, far more than Cingular's current 61 million. Alltel is hoping to close a sale before April or May, though talks are still in the beginning stages.

more info at Reuters »



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This forum is closed.


Mar 5, 2007, 7:08 PM

Western Divestitures

I would think that Verizon may actually have more of a problem than AT&T would to buy it. In the west, there are many areas where Verizon and Alltel are the only choices, some of which include most of North Dakota, South Dakota, Montana, and if I'm not mistaken Nebraska.

Also, Alltel inherited GSM infrastructure and roaming agreements from Western Wireless. Should Verizon purchase Alltel, they would also inherit these (which would probably please Vodafone). I wouldn't think that Verizon would be able to simply shut off this system, as it would look to better themselves by hurting their competitors from predecessor agreements. I guess, perhaps, they could divest that infrastructure? I'm sure AT&T would be up for that, that could reall...
Actually in North Dakota and South Dakota Sprint is available along with Verizon and Alltel. In Nebraska there is Sprint, Alltel, Verizon and AT&T. I'm not sure about Montana, but I think they only have Alltel and Verizon.
I live in South Dakota, used to live in North Dakota so you are wrong...sprint/ nextel is also offered in the dakotas, leap wireless (cricket is avaliable in nebraska) There is also a local GSM service in SD! So no it would be ok...and the original CD...

Mar 9, 2007, 7:23 AM

What about Chad?

Verizon WILL buy Altell, but what saddens me is that Chad will lose his job. Will someone please think about the Chad!
I saw "chad" in a hardees commercial last week so I think he will be fine.

Mar 13, 2007, 9:17 AM

Great! now alltel is going to suck.

I enjoy alltel because they have superior coverage in my area even over verizon and their phones are use their own software and have unrestricted bluetooth. not to mention, the rate plans are very reasonable and i've never had an issue with customer service. none of these things i can say about any other carrier. oh well! at least the stockholders will make out.
Can't say about the phones or rate plans staying but the coverage should still be there even with a merger/buyout.

Mar 8, 2007, 11:14 AM

It will be comcast

If they want to get in the cellular market, they need to start with a smaller carrier (like Alltel)to establish a name in the cellular market, and then go for a heavy hitter (like Sprint).

Sprint has been doing what they can to set themselves up to be bought out by Comcast, however Alltel officially being for sale will throw a wrench in that. I do not think Comcast has the interest or the revenue to buy out two carriers.
First off I'd like to say it is very frustrating not being able to participate in these forums via work computers. Most of the time I'm worried corp security is monitoring what we say on here while on the clock, even if it is slanderous.

A couple ...
It will not be Comcast because there is no reason why Comcast will be buying Alltel. Comcast already have a joint venture with Sprint to launch services on their DO and Wimax networks, no need for Alltel.

Why would Comcast want to pay $30B+ for Al...

Mar 11, 2007, 11:38 AM

IF it is sprint

Can you imagine the headache for the customer on pricing plans?

do you really think that sprint would offer the my circle, with unlimited mobile to mobile between all boost, nextel, sprint and alltel customers, unlimited nationwide direct-connect, free imcoming calls and variable night options?
jerry 12

Mar 6, 2007, 9:18 PM


alltel has been doing good i though so why would they want to sell out ?
Obivious, because Alltel buy almost every hone that Verizon does. I know, I had Alltel before I switched to Verizon(a lot better than Alltel). Alltel probably wants to be in on the VCAST Music which they don't have. And they want to be in on ...

Mar 11, 2007, 3:49 AM

lottery winner

all i have to say is that if i would have won 350 million in NJ i would buy some spectrum too Rolling Eyes

keep yelling guys this is fun. sprints going to buy alltel and cingular is ****

Mar 11, 2007, 12:53 AM

Sprint or Verizon

As an Alltel associate, I have heard inside rumors that the focus is Sprint actually, with Verizon as the 2nd runner up. Alltel's stock is worth a crap load, and there is almost no company debt, so these large companies (with huge debt) would have to spend a lot of money if they want to buy.
so you believe sprint would buy it out?

Mar 5, 2007, 6:21 PM

bad idea for alltel

in all reality sprint has one of the highest churn rates. for alltel to sell to them would be a bad decision on their part, 90% of verizons new activations are old sprint customers .trust me on this one. if alltel wants to stay afloat in this industry theyll think befor they sell. thats not being mean just realistic. Shocked
ckverizon1 said:
90% of verizons new activations are old sprint customers .

and 85% of all statistics quoted are made up on the spot...

moron Rolling Eyes

Mar 10, 2007, 1:32 AM

My View on this ALLTEL situation.

Obviously, there has been a lot of talk with regarding Alltel’s strategic options for selling the company. I wanted to say that I do have shares of Alltel so my opinion is biased of course so consider those.

There are obviously four potential situations that could happen;
1. A sell out to private equity
2. Do nothing
3. And third party suitors
4. LBO

Private equity;
Well as you guys know these guys have a lot of liquidity and have been buying a lot of companies so that is a chance that private equity could be in the fray as they would reshape the company and then offer an IPO 3-5 years down the road hoping to get a higher price than it is currently on the IPO. I do not believe this will happen. A reason comes to mind; one. ...

Mar 5, 2007, 6:34 PM

Sprint, No... Cingular, No... Verizon.... Mabye

This would have been a great opportunity for Srint, 2 years ago. Had this come up before the acquisition of Nextel, Sprint would be a much different company than it is today. Network integration would have been a piece of cake, and they wouldn't have lost as many customer's as they have as a result of the merger with Nextel.

On the other hand, this would be a tremendous pick up for Verizon. It would place them back on the top of the wireless industry (until Cingular got hold of T-mobile USA) and all but eliminate Sprint all together. But I don't think Vodofone would let it happen.

And I'm pretty sure that it wouldn't be a great idea for Cingular for a couple of reasons. Network integration would suck and take forever. The purchase of...
Just curious how this would all but eliminate sprint??
you so right this is going str8 to verizon Shocked djanifer
Cingular can't buy T-Mobile because DT won't sell. T-Mobile makes up 22% of their EBITDA now. They'd be stupid to sell especially since they just spent $4.2 billion on spectrum in the last auction. Just because you want Cingular to buy T-Mobile doe...
Tmobile DT will not sell Tmobile USA to Cingular. Tmobile USA is way to valuable to DT. Don't forget that Tmobile DT is the 2nd largest carrier in the world. Tmobile USA makes a good portion of DT's profits. Not to mention that the FDC or federal gove...
Dude, Cingular is getting rid of their CDMA service, by 2008. Cingular is out of the question. Verizon is buying them.

Mar 5, 2007, 2:43 PM

sprint and alltel

i have a feeling sprint would come on this too since thier friendly agreeements and would make alot more sense to me. the money from nextel is still be poured in but remember the cable companies can still pour money in too.

all sprint needs to do it a migration and ask cable companies and it will be set
and would complement wimax greatly in rural areas
It makes perfect sense for Sprint to try and buy Alltel, since Alltel is buying. They have reciprocal roaming agreements and complementary coverage ares without much overlap, since Sprint covers the major metro areas and highways, while Alltel has bu...
I don't think Sprint is banking on CDMA for it's future. Remember they merged with Nextel for the 2.5GHz spectrum they will use for wi-Max. I wouldn't be surprised if Sprint eventually sells off or shuts down its CDMA operations and goes 100% wi-max...

Mar 8, 2007, 3:19 PM

Coup for ATT

Not that I think they have the resources, and integration would be a complete mess, but ATT buying Alltel and converting all those CDMA towers to GSM would cripple Verizon's roaming ability (probably Sprint's as well). It would put them solidly on top by number of subscribera and network size
Which would still defeat the purpose for all the people who live in South Dakota, because Cingular cannot have any towers up here. So people in SD would still have to chose between Verizon which has very good coverage here, or Sprint that doesn't wor...

Mar 7, 2007, 10:28 AM

It would be as much of a headache as a solution for Verizon

When Alltel purchased Cellular One, they had to sell off their newly acquired Cell One towers located in Nebraska to US Cellular so that Alltel would not have a monopoly. The FCC requires two MAJOR rural wireless providers in every state. In South Dakota, Sprint, Cingular/ATT, and a few other mom & pop GSM carriers don't count because they are not major providers. The same thing would happen if Verizon bought Alltel: in many rural areas Verizon would have to sell of some towers to avoid having a monopoly.

Here are the advantages of a VZW buyout:
1. Immediate expansion of Verizon's EVDO network (Verizon's EVDO towers are only in major metropolitan areas, Alltel has expanded theirs in some more rural locations).
2. A buyout of Allte...
You sure do know a lot of facts about what it is like in South Dakota, is it because you happen to live in SD? The only reason why I know is because I just so happen to be one of the unlucky people who live in this state, and it is true that Verizon ...
jskrenes said:
And the disadvantages:
1. In areas like South Dakota, where VZW and Alltel are the two major carriers, Verizon would have to decide which towers to keep: their own towers or Alltel's.
2. Juggling a buyout/selloff

Mar 5, 2007, 6:06 PM

I'll buy it...

I got a couple bil to throw away, just tell me who to write the check to.

It would be interesting to see sprint merge with alltel, since they have SRA's with each other.

it would make Sprint the largest wireless carrier, and the Juggernaut would begin it's stampede.
sprint should buy the rights to the chocolate then they would be a juggernaut
Sprint wouldn't become the largest...Alltel only has 12.9 million customers, Sprint has 21 million (IIRC), thus the merger would leave Sprint with 34 million, roughly.

Mar 5, 2007, 1:29 PM


gentlemen start your engines! bonus points if your corporate logo is your avatar!
i don't does not make a crap think it would start a war maybe some people may come and defend both company but really it is a personal preference.
Thanks for the laugh.
Zulu Queen of the Dwarves

Mar 5, 2007, 11:26 PM

T-Mobile should be asking Deutsche Telekom to buy Alltel

Even though this is LONG shot, if T-Mobile really wanted to buy Alltel they would need to beg DT for the funds. But again it is a huge longshot being that they spent so much on spectrum.
id rather see orange claim the US market then t-mobile buy out alltel Rolling Eyes
DT loves T-Mobile right now. T-Mobile makes up 22% of their EBITDA. If T-Mobile wanted to, they could convince DT to buy Alltel for them. But I don't think T-Mobile is interested in purchasing Alltel regardless.

Mar 7, 2007, 7:44 PM


yeah T-Mobile... Razz

Mar 5, 2007, 10:05 PM

VZW + Alltel = Good Idea

So what if Alltel is looking to sell. They have finally come to the realization that they can no longer attempt to compete as a national wireless company. Sprint would be the worst combination. They would only do to Alltel what they have already done to Nextel, which is to take a profitable company and turn it into a big disaster. AT&Cingular wont touch it because they have too much debt. T-Mobile can't suck anymore money out of the "Mother Country" to pay for it. That only leaves VZW. Clearly the best choice. VZW is a strong partner, regardless of what all the VZW "haters" say about it. VZW has become more customer friendly than you think. For example, being the first national carrier to have a variable ETF. Offering free services to c...
I agree that a Verizon buyout is the most likely scenario (assuming that another wireless carrier is who Alltel is eventually sold to). However, I don't think that you can discount Sprint.

Sprint buying Alltel is a completely different situation t...

Mar 6, 2007, 10:15 PM

bad idea for alltel 2

continue where you left off boys. Laughing
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