Alltel Looking To Sell
It will be comcast
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.
A couple things to consider, while Alltel would be a cheaper purchase for Comcast to make Alltel doesn't quite have the market penetration nationwide as say Sprint or Verizon does. Comcast will want to invest in a large installed customer base to fill their share holders pockets rather than build out a smaller company to make it nationwide.
Also, as it stands Alltel doesn't have a 4G path (that I'm aware of), Comcast will want a strong IP evolutionary path, which I see as being WiMax, and we all know ...
(continues)
coziamnumber1 said:
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.
Sprint is not going to sell anything, there is too much profit in their data products.
Comcast, Cox and Turner Cable, all have a joint venture with Sprint. So there would be no reason for Comcast to buy Sprint (which would cost an estimated $160 - $200 billion w...
(continues)
it will definatly be interesting to see aht transpires over the next few months.
Within 1 year, I think Alltel would be bought out. I am 85% confident in my statement that it will happen.
Why would Comcast want to pay $30B+ for Alltel to offer similar services that is already offered with their joint venture at a fraction of the cost? It does not make sense.
Comcast would probably buy out Sprint, but it won’t be for a few years especially with the poison pill in place as well as the Joint Venture, however, if the joint venture is success, Comcast will buy out Sprint to counter Verizon’s Fios which destroys Comcast’s offerings, but doesn’t with Sprint’s Mobile Wimax.
Sprint needs Alltel to further its EV-DO network as well as coverage and capacity. In addition, there would be synergies from the merger that would be reached. Remember, $15B was the NPV synergies that Sprint-Nextel merger would be, but that number would be a lot less if Sprint and Alltel merge. Nonetheless, still it would be a beneficial towards the combined entity.
Comcast needs Sprint because of its assets but mainly the Mobile Wimax solution that will be launched soon. The joint venture only last...
(continues)
This forum is closed.