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Alltel Begins Serious Discussions For A Sale

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What about monopolies?

jskrenes

May 10, 2007, 10:24 AM
Here in South Dakota, Verizon and Alltel are the two primary rural carriers. If VZW bought Alltel, they'd have to sell off the towers, customers, plans, etc, from Alltel, probably to US Cellular. I wonder how many other states this would happen to, and if VZW had to jump through all those hoops, what percentage of Alltel would actually be left for them to own. I just don't think Verizon is going to pull the trigger.
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nextel18

May 10, 2007, 11:48 AM
Well then, there would be divestitures if they would be over the spectrum cap and market share cap. That is also a great point to rise because the divestitures would be in the billions of dollars so the economics needs to be there to allow the synergies to outweigh the divestitures.

Also VZ needs to gain that 45% stake that Voda has in VZW which also is going to be very costly.
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supremecellgod

May 10, 2007, 10:20 PM
nextel I've been reading your posts for a long time and I've got to say your the man. I love to read the posts from these vzw sheep and they talk about how they will buy this company and that company and I'm willing to bet that most of them don't even know what voda is. I've been doing this along time (prob too long but thats another story) if I had to predict the future.... there would be a few possibilities... if vzw did pay off their debt(meaning voda) and aquire alltel I'm willing to bet that the divestures would require them to sell spectrum to the spectrum giant (sprint) or to a company like US Cellular. If this does happen I'm willing to bet that Sprint buys US Cellular.... If Sprint buys Alltel... Verizon will eventually buy US Cel...
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Kagehiru

May 14, 2007, 12:17 PM
Don't forget that Verizon has attempted to remove Vodaphone a couple of times and failed. Voda has to willingly be bought out and that hasn't happened yet.
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nextel18

May 14, 2007, 2:41 PM
Well I think the most important thing of what Verizon needs to do is to have 100% ownership in their wireless unit as known as VZW, because their competitors all own their wireless companies, so right there, provides a benefit for those companies against Verizon Communications. It is very difficult to pay for the debt that VZW and Verizon especially if VZ is to buy out the Vod’s stake and then buy out Alltel.

The divestitures would be more then spectrum though, and Sprint does not need that asset. There would be customer divestitures too, which is a huge problem. I am not too sure that Verizon needs to actually buy another wireless carrier because they are a very good company, the only problem that I have is with their Data and their Voi...
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algorithmplus

May 11, 2007, 7:20 PM
Well said. I know North Dakota is in the boat with you, and so is a good portion of Montana. There were also divestitures from the Western Wireless/Midwest Wireless mergers as well, so it's pretty safe to assume those markets would be automatic divestitures.

In terms of coverage, these rural areas cover vast lands, but in terms of profitability, without the customers to collect revenue on the network, it just doesn't make sense to purchase.
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rmtp22

May 12, 2007, 11:17 AM
Now that makes since. Great research guys! I too am from South Dakota.
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gozvzw

May 13, 2007, 11:10 AM
Please correct me if I am wrong. I too am from SD and I remember hearing that Alltel purchased Midwest Wireless in MN over the past year. If that is true then western MN would be all Alltel considering they acquired Cellular One last year and that was Midwest Wireless' only competitor in the area. Now there are quiet a few Verizon customers in western MN but it doesn't really count in this situation since all those customers come to SD to set up service. I don't understand how Alltel can basically be the only carrier in that area, am I misinformed or missing something? If this is true then Verizon could potentially buy out Alltel (not taking into account affording it) and still cover the rural areas which in SD are only Alltel and Verizon, S...
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digitmasher

May 14, 2007, 3:11 PM
Wow, three forum members from SD! That's like the whole state population on this site! Lol I only kid, but what I see happening is Comcast being thrown into the mix. Sprint needs to build out rural coverage using their own native network and not simply rely on roaming, Alltel is a great candidate for them to aquire seeing as how they use 850MHz.
Comcast is looking for something to compete against the fiber optic networks that Verizon and AT&T are laying out and deploying. As Nextel18 has said before FiOS blows comcast's Internet away, and WiMax is the sensible solution for them as it is cost effective to install and deploy.

So what we may see in the near future is Sprint buying out Alltel to not only resolve their rural roaming issues ...
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yeahright

May 14, 2007, 3:08 PM
If a major carrier made a bid on alltel Verizon would have no choice but go all in. Alltel makes up about 25% of VZW's network! 😲 Most markets are not covered by both comapaines. I am in Ohio and Alltel comtrols all of eastern/southern ohio. This also runs into pa and other areas, loosing that would kill vzw. If Sprint or any major carrier went for alltel i think we would see verizon step in to keep control of those roaming areas...Then again we already roam off of sprint in some markets so I guess they could pay to still use those towers. As Far as monopply goes, can't really see how you can argue that when cingulat,at&t, Sprint, Netxtel, all had recent mergers and they are all national carriers so how could they block vzw from buying a r...
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