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Alltel To Go All Wireless

Article Comments  23  

Dec 9, 2005, 11:35 AM   by (staff)

Alltel today announced the company would sell off their wireline division to Valor Communications and become a pure wireless play. The wireless division of Alltel has recently purchased Western Wireless, Public Service Cellular, and Midwest Wireless in an effort to become a major regional player. The spinoff and purchase of the wireline division should be complete by the middle of 2006. Alltel is focusing on CDMA and has separately announced that they will shut off Public Service's legacy TDMA and GSM networks by year's end in an effort to unify and expand CDMA coverage for their subscribers.

Associated Press »
RCR News »


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Dec 10, 2005, 4:44 AM

VZW Merger Target ?

Rumor had it for along time here in the VZW camp that VZW has always been interested in Alltel, but never pursued it because of the hassle of the wireline side. Verizon Communications is already working to shed their wireline business due to loss. Is this the first indication of the VZW/Alltel merger coming as predicted. Take a look at all the recent data roaming agreements. VZW employees already have a comped access plan for coverage on native VZW and Alltel. We are already seeing a network integration on some level. Although the Western Wireless thing throws me for a curve. Is it possible that Alltel wants to become the next CDMA player on the National Level?

Questions, Comments, Concerns . . .
Alltel, after acquiring Western Wireless, would probably not be a good take-over target for VZW. Because both have a LOT of overlap, especially in rural areas, there would be a great number of divestitures involved. Plus, losing another competitor...
this wont happen.. a verizon alltel merger would make the new company have way too many properties and market share which would make them to all kinds of divestitures of both spectrum, subscribers and other assets. it wouldnt be in their interest to d...

Dec 9, 2005, 5:01 PM

Valor, PSC...huh?

I'm surprised Alltel is selling the wireline business to Valor, especially when Valor is so small and so regional (basically Texas and surrounding states) compared to Alltel and other possible buyers such as CenturyTel. Then again, the deal seems structured to merge Valor into Alltel then spin off the wireline business to both companies' shareholders (kinda like what is going with Sprint Nextel and LTD), so maybe it isn't so strange after all.

As for PSC's GSM, it's unclear from the RCR article if they plan to "forcibly" migrate former PSC GSM customers (however few of them there are...PSC only sold GSM for a few months) to CDMA or if they plan to shut off and dismantle the GSM network, especially when Alltel could significantly expand i...
Technically, if you read Valor's press release this morning, Alltel's wireline business is spun-off first and then merged with Valor.
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