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MetroPCS, Alltel Pick Up Fallout from Cingular Merger

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Isn't Alltel all-CDMA?

vlad213

Nov 29, 2004, 4:08 PM
Isn't Alltel running an all-CDMA network? What use will they have for the portions of AT&T's network that they're getting?
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tuisgreat

Nov 29, 2004, 5:09 PM
I believe they are buying the spectrum, not the towers. they then can put up there own cdma network
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Rich Brome

Nov 29, 2004, 7:01 PM
For the places where they are getting customers, that's a major asset. Without the network also, those customers would lose service until Alltel could build its own network, which would take years. So they would lose those customers... The network will let them keep the customers and transition them to a CDMA network over time.

So basically, a deal involving customers doesn't make sense without a network. That is, unless it can be phased in over several years, but I don't think the DoJ and FCC would allow that - Cingular has to get rid of these assets ASAP.

Plus, for those areas and also Wichita, getting a GSM network is better than no network at all. It's easier and cheaper to convert a GSM network to CDMA than to build a CDMA network...
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