Verizon completes Alltel deal; to surpass AT&T as US’s largest mobile phone company
10 Jan 2009
The US has a new No.1 mobile phone company. Verizon Wireless said Friday it has completed its $5.9 billion purchase of Little Rock, Arkansas-based Alltel Corp., catapulting it to the top of the heap surpassing AT&T. Verizon said Friday it will also take on $22.2 billion in Alltel debt.
"Alltel employees below executive level will continue in their present jobs as Verizon Wireless assesses staffing needs required to best serve customers and achieve synergies," the company said in its news release. Verizon has not released more specific details.
"The acquisition expands Verizon Wireless' network coverage to approximately 290 million people, nearly the entire United States population, and increases the company's customers by 12.9 million, after conforming adjustments and before required divestitures, making it the largest wireless carrier in the country with more than 83.7 million total customers," Verizon said in the release.
As a condition of the purchase, regulators forced Verizon to sell 105 overlapping markets in 24 states. Most of the properties sold will be from Alltel. Verizon says it will divest in four markets it held prior to the buyout, and will sell Unicel operations it owns in southern Minnesota and western Kansas.
Verizon picks up Alltel's 12.9 million customers, though 2.1 million of them are in territory that will be sold. Verizon says Alltel customers do not need to take any action at present, though they will soon receive a letter explaining the transition. Most will be able to keep their same handsets as Verizon and Alltel are on the same system.
Verizon said the merged company would continue to use the Alltel brand while the transition is underway.
"Verizon Wireless will re-brand Alltel operations in the retained markets in phases, beginning in the second quarter and continuing through the third quarter of 2009, as billing conversions are completed throughout the country," Verizon said in the release.
Verizon Wireless announced in June it would buy Alltel. The FCC approved the purchase in November and Justice Department gave its approval in October. Verizon says the purchase will bring more than $9 billion in synergies from capital and operating expenses, after costs. (See: Verizon Wireless signs $28.1-billion acquisition agreement for Alltel)