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Alltel Looking To Sell

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

jskrenes

Mar 7, 2007, 10:28 AM
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...
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flying_monkey

Mar 7, 2007, 12:27 PM
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 and Alltel are the major carriers here, I don't run in to many people who have a different one. Cingular is not an option here because they are not allowed to have any towers up in SD. Sprint doesn't work well here either. This entire situation isn't the greatest thing for the little people who don't matter in SD. If anything I would hope that Verizon would be the only company to buy out Alltel.
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jskrenes

Mar 7, 2007, 1:23 PM
I live here, and I also used to work for RadioShack. When they dropped Verizon, they switched to Cell One, then when Alltel bought out Cell One, I had to learn both Alltel and Cell One phones, plans, etc. I then switched to a local Verizon retailer for employment. I also live near the Nebraska border, so I have done a lot of business with NE residents.

Even if Verizon doesn't buy Alltel, I think this whole thing is good for midwest/plains state residents.
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flying_monkey

Mar 7, 2007, 2:47 PM
So I am guessing you live in the Yankton, Vermillion, or Sioux City area? If so that is in my area.
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algorithmplus

Mar 7, 2007, 8:05 PM
jskrenes said:
Even if Verizon doesn't buy Alltel, I think this whole thing is good for midwest/plains state residents.


It would depend on who you are. When for mobile service you have the options of Alltel and Verizon, assuming no divestitures took place, which they would be required, vast areas would go from having two choices to one choice. This could also affect other customers as well, as Verizon may try to raise roaming rates of for Sprint and other CDMA carriers, as well as try shutting down Alltel's GSM network, which would adversely affect GSM roamers. Now that Verizon would have a monopoly, they could charge whatever they want. They would have no reason to compete or innovate. In this scenar...
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jskrenes

Mar 7, 2007, 9:45 PM
Actually, Verizon would have to sell off towers where they would have a monopoly, were they to acquire Alltel.
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SkillciaX

Mar 8, 2007, 2:31 PM
algorithmplus said:
jskrenes said:
Even if Verizon doesn't buy Alltel, I think this whole thing is good for midwest/plains state residents.


It would depend on who you are. When for mobile service you have the options of Alltel and Verizon, assuming no divestitures took place, which they would be required, vast areas would go from having two choices to one choice. This could also affect other customers as well, as Verizon may try to raise roaming rates of for Sprint and other CDMA carriers, as well as try shutting down Alltel's GSM network, which would adversely affect GSM roamers. Now that Verizon would have a monopoly, they could charge whatever they want. They would have no reason
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algorithmplus

Mar 8, 2007, 6:23 PM
SkillciaX said:
What if Verizon were to buy the cdma portion of Alltel's Network, and say AT&T or T-Mobile buys the gsm portion. Could they do that?


I doubt that would be allowed. It would be like buying all the customers of your rival, and selling off *some* coverage to a *new* competitor.
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algorithmplus

Mar 7, 2007, 7:59 PM
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 scenario could be costly, but it could be just as problematic and even less profitable to let Sprint acquire Alltel.


In the case of Verizon acquiring Alltel, I would assume they would keep their own towers. In the case of selling towers, they would also have to sell the customers. I wouldn't assume that "Verizon Wireless is now U.S. Cellular and Alltel is the new Verizon Wireless" would pan out very well (insert any other company for U.S. Cellular).

Normally the surviving...
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jskrenes

Mar 7, 2007, 9:42 PM
That's true. In all likelihood Verizon would acquire the Alltel towers in places like Nebraska where they are not one of the primary carriers.

Verizon and Alltel also have different philosophies when it comes to tower placement. Verizon shoots for continuous coverage while Alltel looks at areas that have little or no coverage and puts up a tower. So Alltel has kind of a shotgun coverage with great service in some spots and no coverage in others. These two ideas about coverage could be problematic if Verizon acquires Alltel. So who knows what they will do.

And to answer the other question, I live in Yankton and work at the Verizon retailer in town.
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flying_monkey

Mar 8, 2007, 11:11 AM
I knew you had to live close by if you share almost the same opinions as I do, I live right on the border as well, a little bit more south though.
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algorithmplus

Mar 8, 2007, 6:29 PM
I lived in North Dakota for 5 years, and there hasn't been much change other than overlay of CDMA and 1x. I wouldn't imagine SD is much different in that way, so I really feel that you guys really do have the short end of the deal when it comes to wireless.
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