Verizon Wireless Buys Alltel for $28.1 Billion
PLEASE IM CONFUSED?
does this mean that alltel will be getting better phones like the ones verizon has? and will they be getting better coverage? explain this to me.
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3 things. 1, VZW will save money on roaming which they can pass on to customers in a number of initiatives. 2. The phone portfolio should get better and they will combine the two together. 3. Coverage should get better but in the rural areas.
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VZW will save on roaming charges. However, I think it's unlikely they would pass that on to customers. If all the synergies were passed as savings to customers, there would be no need to merge in the first place, as profits would remain the same in the long run. The phone selection will probably get better, but I don't think coverage will get much better in that many places as the two already have roaming agreements such that in many areas, you can roam on the other even in your home market.
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Of course, they would still need to merge. I didn’t say to give all of the $9b they are expecting but they can give some of that to customers. Well coverage might get a bit better with capacity.
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The synergy savings won't be passed on to customers in the short run- they'll be used to pay off the debt and grow out the LTE network. Two years from now you may see price plans improve after LTE is deployed and build-out slows down. You won't likely see prices drop any time soon, and there is little chance the VZW will keep the my Circle plan.
I know that VZW has a deal with VZComm (landline) that gives free calls from home-phone to cells if you have a VZComm home service and your VZW cell (but not all VZW cell phones), so their billing system must be capable of implementing a MyCircle-like system. I doubt you'll see it, though. It's not VZW style to keep on programs like that.
I know that VZW has a deal with VZComm (landline) that gives free calls from home-phone to cells if you have a VZComm home service and your VZW cell (but not all VZW cell phones), so their billing system must be capable of implementing a MyCircle-like system. I doubt you'll see it, though. It's not VZW style to keep on programs like that.
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Again, you never know about what they might do with the $8B of synergies that they will realize. Remember VZW also generates great cash flow.
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If this passes approval, Alltel essentially goes away. There will be a turnover period where they'll need to convert billing systems, sell off spectrum in overlapping regions, and Altell contracts expire. Anyone renewing a contract will have to pick from the available Verizon phones.
There may be certain areas where certain customers will be sold off to a third party to avoid having Verizon as the only choice in a region.
There may be certain areas where certain customers will be sold off to a third party to avoid having Verizon as the only choice in a region.
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the thing is, i really like having Alltel. Ive been against having Verizon simply because of there UI. Its so EW to me. Alltel is the only carrier that i know of who doesnt F*CK with the menu system at all. Verizon has great phones, but Im opposed to having Verizon. Att Sucks a**, Suncom is wach, TMobile doesnt do service here, and Sprint is GARBARGE. THis is going to suck if they dont fix the phones.
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