Verizon Wireless To Buy Alltel?

Rumors are flying that the largest rural cell phone provider, Alltel, is being stalked by Verizon like an alley cat on a delicious plump mouse. Is it true? Maybe, but probably not. Even though both carriers are CDMA (T-mobile and Cingular are GSM, a different technology), it’s likely that the price of Alltel would be too much for Verizon, despite the fact that a merger between the two companies would make Verizon the nation’s largest provider. From ZDNET:

“Verizon has had a significant amount of success growing organically,” [an industry analyst] said. “I just don’t see any reason why they would need to buy Alltel. They can build their own network for a lot less than $30 billion.”

Nelson said, however, that he could see Verizon Wireless buying Alltel if the company fears it will lose the asset to a competitor.

Currently, Verizon leases space on Alltel’s network in order to provide coverage in rural areas. —MEGHANN MARCO

Is Verizon Wireless really looking to buy Alltel? [ZDNet]
(Photo: Sister72)

Comments

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  1. Falconfire says:

    Currently, Verizon leases space on Alltel’s network in order to provide coverage in rural areas.

    that right there would explain the reason why they likely would buy Alltel. In the end it might be cheaper for them to spend the money outright and make it back in a couple of years than it would be to lease for the same amount of years.

  2. crawfishpie says:

    Oh, man…tell me it ain’t true! Alltel is my provider and I have loved them for 5 years. Great customer service, good call connection, nice features (you can change your service plan every month if you need to, with no charges or plan extensions). I sing their praises all the time. Guess it’s bye bye now. Sniffle, sniffle.

  3. adamondi says:

    Besides, they would not being buying Alltel just for the network. They could easily build out their own network for cheaper, but buying Alltel would also mean buying all of Alltel’s customers, not just the network infrastructure.

  4. ajn007 says:

    Will not even the Consumerist let the internet/cat cliche die?

  5. I love the kitties.

  6. Grrrrrrr, now with two buns made of bacon. says:

    Cat not included.

  7. Maulleigh says:

    Kittie!!!!!!!!!!!!!!!!!!!!!! Kittie!! Kittie!!!

    …um…did you say something?

    Kittie!!!!!!!!!!!!!!!!!!!!

  8. itchy feet says:

    I’m on ur fone box monitpurring ur calls.

  9. shoegazer says:

    And again –

    To: Alltel
    From: Verizon

    I’m in UR leased lines considering UR takeover.

  10. MisterE87 says:

    @crawfishpie:

    For the record, VZW lets you change your plan every month, if for some reason you would want to do that, even twice a month. There is no charge and no contract extension.

  11. loganwarlord says:

    I used to work at Verizon Wireless up until last week. And yes it is true Verizon is buying Alltel. The changes start next Jan.