Verizon Wireless Will Have to Divest Assets to Buy RCC
for those who know a bit more then me
Is this even a big deal?
Who would buy Unicell from Verizon?
would the loss of Unicell hurt Verizon at all in relation to acquired alltel?
Who would buy Unicell from Verizon?
would the loss of Unicell hurt Verizon at all in relation to acquired alltel?
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Those 80 million subs you guys thought you had? That figure is going to go down. While adding Alltel to the fold will add subs, it will not add what you guys thought it would.
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Well, you don't know that for sure do you?
The first thing I said was let's see what DOJ requires Verizon to divest. The areas where they have the most rural coverage is also the areas where they have the least customers. Yes, Verizon may keep that but in areas like Phoenix, El Paso, Dallas, etc. where Alltel and Verizon compete who knows what could happen. This could also get pushed to a new administration that may or may not be as friendly to big mergers.
Ever hear the saying, "Don't count your chickens before they hatch"?
The first thing I said was let's see what DOJ requires Verizon to divest. The areas where they have the most rural coverage is also the areas where they have the least customers. Yes, Verizon may keep that but in areas like Phoenix, El Paso, Dallas, etc. where Alltel and Verizon compete who knows what could happen. This could also get pushed to a new administration that may or may not be as friendly to big mergers.
Ever hear the saying, "Don't count your chickens before they hatch"?
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ok but it's still going to go thru, no ifs and or buts about that... but I will revisit this post at the end of the year when all my chickens are hatched.
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No one said it is not going to go through. Go through with WHAT is the question. The final figure will not be all 80 Million. That has been demonstrated today.
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You never know. Given the nature of divestitures and roaming agreements that are required now a days to complete a big merger might require them not to do it at all. The deal for Rural or Unicell was $2.5 or $2.7B depending on what numbers you look at and if the divestitures (of the 6 markets/areas) and other considerations for this merger to go through is going to eat a lot into the deal then there would be a break up and that fee would be paid to Rural or Unicell. Same goes to Alltel if the same type of situation happens, but of course the divestitures would be greater. I know this breakup fee is $500m so we shall see.
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This isn't relevent anyway since Verizon already had a deal in place to swap those areas with at&t for properties at&t needed to divest from the merger with dobson.
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Its-The-Network said:
ok but it's still going to go thru, no ifs and or buts about that... but I will revisit this post at the end of the year when all my chickens are hatched.
Do you know exactly how many of your chickens are going to hatch?
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Did you read the article?? RCC/Unicel has less than 1 million subs. The leap to ~80 million subs would happen as a result of the proposed Alltel deal, not the RCC/Unicel deal. The RCC/Unicel deal was primarily to gain coverage in areas they either didn't have a license, or had a very new PCS network that wouldn't have been cost effective to build out.
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Basically it enhances their coverage in the rural areas. Also, Unicell has both CDMA and GSM networks so I think Verizon wanted to take the opportunity to host roaming services but I think the regulators are probably going to go after that especially since Alltel has GSM networks as well and might go into Unicell’s areas but more importantly Verizon will control both of them, if the deal goes through, which gives them a leg up on the GSM networks when it comes to roaming.
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1. Yes it is a big deal. If companies can just merge together to have no or little competition in a given market plus control roaming fees then competition will go away and pricing will sharply increase. The term of the VZ/Unicell deal was $2.67B.
2. Many carriers would. T-mobile, AT&T, Sprint, other companies.
3. I think if Verizon doesn’t do this the Alltel deal won’t go through so this is the right step. As for the 6 markets/areas in which they have to divest who knows how much money that is. There could also be a breakup fee.
2. Many carriers would. T-mobile, AT&T, Sprint, other companies.
3. I think if Verizon doesn’t do this the Alltel deal won’t go through so this is the right step. As for the 6 markets/areas in which they have to divest who knows how much money that is. There could also be a breakup fee.
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Im not worried about it. Verizon has had the best overall coverage since I started selling it in 2001. We're just better, period. That comes from the customers mouth. Consumer reports magazine. Aquiring Alltel will be nice if it goes through, but if it doesn't cause of monopoly issues, so be it.
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I wouldn’t say Verizon is better than AT&T period like that, but there are some metrics that AT&T has that are better and some that Verizon is better. You can’t say that Verizon is great everywhere and the same with AT&T.
I don’t care what consumer reports say actually.
I don’t care what consumer reports say actually.
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art23ncsu said:
Im not worried about it. Verizon has had the best overall coverage since I started selling it in 2001. We're just better, period. That comes from the customers mouth. Consumer reports magazine. Aquiring Alltel will be nice if it goes through, but if it doesn't cause of monopoly issues, so be it.
It's a matter of perspective and locations. I guarantee you that in some places, Verizon is the bottom of the heap for coverage and Sprint or T-Mobile are at the top.
I do agree that a *truly* nationwide network would be good. I think Verizon is trying to beef up coverage before LTE...
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Not really a matter of perspective, its just facts. Its such a rarity that another carrier has better coverage than we do. It does happen though. Ive always said to customers, NO ONE covers everywhere, but we cover the most. Sometimes I make it funny and say "We suck the least" 🤣
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I can tell you as someone who is close to this, the contents of the DOJ ruling are nothing new or unexpected. Although Verizon was attempting to hold on to these licenses, I think everyone figured that this would eventually be the outcome.
Not only did Verizon agree to divest these markets specifically to AT&T a month or two ago, but the FCC took the unusual step of approving the transfer of those licenses pre-emptively.
This will not hurt the merger of Unicel and Verizon, and in fact this is great news because it means that the transaction can finally be completed soon, once the FCC rubber-stamps it.
I'm sure the Alltel deal will have its own set of hurdles to overcome, and there will certainly be some more divestitures required with it...
(continues)
Not only did Verizon agree to divest these markets specifically to AT&T a month or two ago, but the FCC took the unusual step of approving the transfer of those licenses pre-emptively.
This will not hurt the merger of Unicel and Verizon, and in fact this is great news because it means that the transaction can finally be completed soon, once the FCC rubber-stamps it.
I'm sure the Alltel deal will have its own set of hurdles to overcome, and there will certainly be some more divestitures required with it...
(continues)
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Alltel had to divest some of Midwest Wireless' holdings in MN when they bought MWW...that's where Unicel's MN holdings came from....now those customers are going to get delt again.
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Keith-IA said:
Alltel had to divest some of Midwest Wireless' holdings in MN when they bought MWW...that's where Unicel's MN holdings came from....now those customers are going to get delt again.
Actually Alltel was given a choice in which license to divest where Midwest Wireless and Alltel overlapped. Not too long after they acquired Western Wireless, they divested the Western Wireless network, since it wasn't built out properly, while Midwest Wireless was built out better. I wonder what'll happen with the market where Alltel was allowed to keep both cellular licenses in Minnesota from the buyout of Midwest Wireless and Great Western Cellular.
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This forum is closed.
