Verizon Wireless In Talks to Acquire Alltel
Bad for Sprint...
You have to remember there are NO roaming rates with Verizon...they have a national plan..
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What's worse for Sprint is that if Verizon buys out Alltel, either Sprint will be their next acquisition or Verizon will just let Sprint fizzle out and absorb the customers that churn off. Alltel and Sprint would make a pretty decent pair, either as one buying the other out or some sort of joint venture.
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Neither of those scenarios is likely to happen. If Verizon buys Alltel, it will be several years at least before they would be in a position to acquire Sprint, and that's assuming they can get past anti-trust regulations.
And Sprint is not simply going to die off. As badly managed as they are, they still have over 50 million customers and a lot of spectrum. If nothing else, the company will be purchased by a venture capital group or an overseas carrier.
And Sprint is not simply going to die off. As badly managed as they are, they still have over 50 million customers and a lot of spectrum. If nothing else, the company will be purchased by a venture capital group or an overseas carrier.
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Why are you guys under the assumption that Sprint and Verizon don't have a roaming agreements? All three companies have agreements with each other.
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This is true, however; VZW pushes their roaming capabalities (PRL) on Sprint to the bottom of the list, and vice versa. It is cheaper for both VZW and Sprint to roam on Alltel than each other. Alltel is still a regional carrier (albeit the largest regional carrier in the US) and has little negotiation power compared to VZW and Sprint. That is why it is cheaper for Sprint to roam on Alltel than VZW.
If VZW buys up Alltel, they will have little need for Sprint as a roaming partner and will either a) cancel the roaming agreement altogether (not very likely) or b) renegotiate the roaming rate to a number much more beneficial to VZW (very likely). Either way does not bode well for Sprint.
If VZW buys up Alltel, they will have little need for Sprint as a roaming partner and will either a) cancel the roaming agreement altogether (not very likely) or b) renegotiate the roaming rate to a number much more beneficial to VZW (very likely). Either way does not bode well for Sprint.
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alltel and sprint have a 10 year roaming agreement if i am not mistaken, I wonder what happens to that if this does happen?(which i doubt)
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Don't forget, Alltel also runs a GSM network 'just' for roaming. AT&T, T-Mobile and many smaller rural carriers would also be affected.
Both of these companies have long term agreements.
Both of these companies have long term agreements.
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That is true that it will hurt Sprint, but not just on the roaming on the overall competitiveness of the entire marketplace. Of course, when you continue to take out carriers that hurt the ones who are suffering and currently that is Sprint. Perhaps it might help them to say, “uhh oh we have some things to do†and this weakness they can use as an opportunity and turn it into strength.
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This forum is closed.
