Verizon to merge with Alltel

Verizon Wireless (owned by UK's- Vodaphone and Verizon Communications) announced its plans to merge with rival CDMA wireless company Alltel (owned by TPG Capital and GS Capital Partners) in a deal worth $28.1 billion ($5.9 billion cash and $22.2 billion Alltel's estimated debt).

Together, Verizon Wireless-Alltel will have 80.2 million subscribers, surpassing AT&T's 71.4 million. Verizon plans to open it's unlimited IN-calling to the entire network.

On Thursday, June 12, 2008--Stocks opened higher after the merger-talk. Dow Jones + 28.74 . NASDAQ + 4.89 points. S&P500 + 4.13 points.

In the past 23 years, the FCC has allowed telecommunications giant AT&T to become more powerful than they were before the 1984 split. Comparing AT&T Pre-1984 and AT&T Now is like looking at Lou Ferrigno and the CGI Edward Norton version of The Incredible Hulk.



It makes sense that Alltel and Verizon Wireless merge in order to compete with this giant. They both already use the same network technology (CDMA) and offer basically the same phones with different model numbers. The combined towers will create the largest network of nationwide coverage in America.

For customers, it means better coverage and more people we can talk to for free (over 80 million).

Is this a bad merger? No, and everyone saw it coming. The bad mergers happened years ago and this is the inevitable result.


More Info:
http://www.forbes.com/special_contributors/2008/06/05/verizon-alltel-acquisition-tech-cx_pco_0605paidcontent.html
http://economictimes.indiatimes.com/Market_News/US_stocks_open_higher/articleshow/3103496.cms
http://www.baltimoresun.com/business/bal-bz.hancock13jun13,0,392096.column
http://news.cnet.com/8301-10784_3-9960664-7.html