Verizon to Buy Alltel

Can you say “Whoa?” Can you also say “Goodnight Sprint?” Check it out: Verizon is purchasing Alltel. They're dishing out $5.9 billion in cash and taking on another $22.2 billion in debt for a grand total of 28.1 billion dollars. This will make Verizon a bigger juggernaut than they already were and is all syngergistic and stuff:

Verizon Wireless expects to realize synergies with a net present value, after integration costs, of more than $9 billion driven by reduced capital and operating expense savings. Synergies are expected to generate incremental cost savings of $1 billion in the second year after closing. - [247 Wall Street]

...So much for my pipe dream of Alltel buying out Sprint, eh? Alltel has been rumored to have been fishing for a buyout from Verizon for a long time. Is this good or bad for Alltel's customers? They'll surely get better roaming, but Alltel has a reputation of offering quality, personal service to its customers? Will a giant like Verizon be able to do the same?

More details as Forbes, looks like the deal isn't a firm go yet and heaven only knows whether or not the FTC will allow it.

Thanks to Phil for the tip!

WC Staff
  • Nothing good will come from this. I am an Alltel customer who lives in a rural area and never dreamed of evdo until Alltel provided. Alltel takes care of rural America. Verizon, Sprint, and AT&T have historically had no interest in rural America. Every carrier has had to be competitive in the market place. AT&T has roll over, Sprint has the best data plans, Alltel has my circle and Verizon has. . . . . .??? Verizon has ?We are the best that is why we cost the most.? Also lets not forget that 5 gig limit . . .err I mean unlimited data plan that new alltel customers will inherent while at the same time loosing my circle, If you are already a Verizon customers expect to pay even more as the competition is being bought out (or destroyed = sprint). Maybe next year unlimited will mean 2.5 gig.
  • I heard about this from a buddy that works at Verizon months ago --- just seems completely ridiculous. With everything that Verizons doing with Fios and home services, they are literally taking over the entire market one piece at a time. Smaller companies like Comcast and Metro PCS are going to find it much harder to compete.