Telecompetitor Arches

Verizon Rumored to be Acquiring Alltel

Update-6/5/2008 – As of 10:00a ET, the Wall Street Journal is reporting that Verizon and Alltel have come to terms on a sale, with Verizon offering $5.9 billion and the assumption of $22.2 billion in debt. More to follow soon.

There is a floating around that is in talks to purchase for $27 billion. If the rumor holds true, a Verizon acquisition of Alltel would create the largest U.S. wireless carrier, surpassing the current leader , with a combined 80 million subscribers. AT&T currently has about 72 million subscribers. Such a move would have interesting competitive implications. For example, it may open the door for other interested carriers, wireline or wireless, to gain or expand wireless assets because anti-trust concerns will certainly force Verizon and Alltel to shed some overlapping or dominant territory. Secondly, it would expand the Verizon footprint and brand into more rural territories and perhaps impact wireless substitution there. Much more information to come on this potential blockbuster deal.

SIMILAR STORIES

Students on Computer
Private Wireless Rollouts Down 11% in U.S. Manufacturing: Study
Learn more about this post
Cellphone Use
Verizon Expands Satellite SMS Beyond Emergencies With Skylo Partnership
Learn more about this post
Telecompetitor Arches
Verizon Launches Dedicated 5G Network for First Responders
Learn more about this post