According to a story making the rounds right now, Verizon Wireless is considering buying Alltel. I think it's an awful match. There are other wireless mergers that would make more sense.
A merger between Verizon Wireless and Alltel, the nation's second and fifth largest wireless carriers, would create a behemoth megacarrier with 80 million customers. It would also create a mess.
For one thing, Verizon and Alltel have massive overlaps in territory and spectrum, especially in the most desirable 850 Mhz real estate. It's extremely unlikely that the FCC would let a merged Valltizon own both "sides" of the 850 Mhz spectrum, which means the merged entity would have to figure out how to divest most of South Carolina along with much of the Mountain West and Southwest. Valltizon would either have to swap that spectrum with another carrier - and it would be so spectrum-rich, what could it possibly want? - or sell it, but to whom? Users, of course, would be caught in the middle.
The second problem is that being gobbled up by Verizon - and with their widely disparate sizes, it would indeed be a gobbling-up - would almost certainly kill all of Alltel's idiosyncratic pluses. My Circle? Collapsed. Celltop? Not at the top of Verizon's list, that's for sure. All that Alltel is, would end. Welcome to Verizon's premium-priced world.
Finally, Alltel is just big enough to cause indigestion. Wireless carrier mergers seem to work when the smaller partner is below a certain size. But if you're dealing with big mergers, they're almost always a pain. The merger of Cingular and AT&T caused two years of struggle - and like Verizon and Alltel, those two companies shared the same technologies. The company seems over the hump now, but 2005 and 2006 were ugly.
(The fact that Verizon and Alltel both use the CDMA and BREW phone technologies is the only thing that makes this merger less than suicidal. The merger of Sprint and Nextel, which had incompatible technologies, may very well doom Sprint.)
There are a bunch of mergers involving Alltel that would make a heck of a lot more sense. Here are some options.
Alltel and US Cellular. Merging the two biggest regional carriers is a great idea. They both use CDMA. Together, they'd have around 20 million users - within striking distance of T-Mobile. They have some intriguing synergies - US Cellular is strong in Chicago and has a presence in the Northeast and the West Coast, which Alltel lacks. There would still have to be some divestiture in Wisconsin and Minnesota, among other places, but it wouldn't be nearly as painful as a Verizon merger.
Alltel and MetroPCS. Now we get exotic, but there's a point to this. MetroPCS has been slugging it out with Cricket, which has a very similar business model. Like Alltel, Metro uses the CDMA technology. But it has no 850 Mhz licenses, which means potentially no divestiture. Metro is about to hit the Northeast and the West Coast in a big way, both weak areas for Alltel. And they just spent a huge amount of money buying the spectrum to do so.
Most mergers never happen. This one has huge roadblocks, including a skeptical, distracted, election-year FCC. Let's hope it doesn't go through and Alltel finds a better partner for their customers. I'm only comforted by the fact that the same story was floating around last February, and nothing came of it.
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June 5, 2008 8:12 PM
it's seems the author is an Alltel customer. while bigger usually means messier and less customer friendly, as a verizon customer for more than 7 years, they have been improving overall. if al your concerned about is your "5", then go to AT&T. with VZW, practically all plans starting at 39.99 pr more/month gives you IN, which allows you free calling to any Verizon Wireless customer ANY time, Any Day, and with a merged 80 million customers, that's a lot of free calls. Then the remaining minutes on your plan for non verizon customers and while i do agree the pricing plans,are a bit pricey these days, and I'm not too happy with the transition to paying per MB of data from using airtime for surfing, I've used several carriers and they have the best coverage, some of the best phones, and you can't beat the new every two discounts on top of the sales. and f course OnStar can be shared with your VZW plan instead of the pricey Onstar minutes
June 9, 2008 8:11 AM
If Verizon Wireless could figure out a way to charge customers everytime the charge their cell phone battery..... THEY WOULD! By far the most expensive, restrictive, company you can use. If you like paying "a la cart" at resturants, you'll love VZW.
But, hey....ya gotta pay for those CEO pay raises somehow.
June 19, 2008 12:54 AM
Check your facts. Verizon does have some overlapping coverage, but there are vast areas that it does not. They might have to trade some of it out, but this is a good move on Verizons part. Despite some beliefs by folks, this will make coverage improve for Alltel customers, as Verizon lives by it's the network motto. That is why the others guys try to mimic it. They really value their customers. My experience has been spectacular despite them being a large company. My folks who are Alltel customers are exicted about Verizon coming in. Why don't you try to spend some time checking into it. Are you jealous?
July 2, 2008 11:03 AM
Agreed. Smart move by verizon. and hwo said for sure that my circle was going out the window? I'm sure if VZW wanted to they'd take over it. Also, verizon has been able to keep their customers all this time, and they're the only national carrier i know if that doesn't have an option for nights starting earlier than 9, so they're doing something right. A bigger, stronger network, more customers, more jobs at verizon (working for sprint, but i would love to work for verizon) and no more of those annoying wizard commercials. :D
July 4, 2008 12:17 AM
This is awful for Alltel Customers; especially my self. Right now I have the family share plan that costs me a total of $123 a month. I have 3 phones, 11 Circle of Friends, nights & weekends start at 7pm & 1000 anytime minutes. Just with my mobile to mobile including myCircle minutes we use over 6000 minutes a month. A good majority of the anytime minutes are outside of the Alltel network. I think this is a bad offer & Alltel is really going to let alot of customers down with this merger. I think it would be better for Verizon to join Alltel's customer; because I think Alltel has alot more customer friendly plans & at least there would be some benefit of a merger for the customers. After all, it's the customers that count.
July 10, 2008 10:49 PM
Hello. Compelling article I must say and on the top 5 google results. good show. As an Alltel customer I am Thrilled for this merger but of course I am still a bit on the dodgy side. I love Alltel. Their innovative ideas and amazing customer service has been a beacon of hope that there still is quality out there. My circle and Celltop are amazing (celltop has won awards you know) and i just hope they stick with those ideas. I mean come on I know they can afford to. It's like Goliath realized what David was all about and respected that. Then became close personal friends
July 14, 2008 9:06 PM
I see why VZW wants to get in America's Largest Network but i wouldnt make anysince. I heard that alltel is only going to VZW bcuz we r going bankrupt. Alltel is a fast growing business because of the plans they have to offer, no other network can compare. Come on, My Circle choosing up to 5-10 or 2 numbers. Celltop? Quick Fast Easy and Efficent. Does VZW have this NO!! Are theyre plans better than Alltel's 1, NO!! This is a bad idea. I'm pretty sure all the alltel customers are furious right now because I sure is!! I wish i could have meeting with the guy who owns alltel. And just because we are running out of money, we can always put more in the bank because many people want to be on our network. Evey1 wants to come and get their "love". LOL But this makes no sense to me and Alltel should re-consider.
July 27, 2008 7:57 AM
When 2 Big company marge together it means there grows better probability to create some new path in the industry to build something extra genius invention for mankind. But if they try to compact each other for ruling the market then it will be alarming for us. I don't know their market strategy, But i am really confused on their movements.
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Daniel
widecircles
August 3, 2008 12:24 PM
I am a Alltel employee and have been for 4 yrs. We are very exited about the merger. With the coverage that we have and the coverage the Verizon has we will be the largest wireless network around and we are very proud of that. We are proud to be a part of one of the biggest merger that has taken place!!
August 4, 2008 12:27 PM
CS, what you obviously don't know is that Alltel has coverage in areas that AT & T doesn't and a switch wouldn't be that easy. Some of us have chosen Alltel not only for their MyCircle plan, but also because of the coverage available to us in small towns. That is why they have so many small town customers. Why would we be excited to lose the main selling point for why we chose Alltel? MyCircle allows you to call not only 5 people outside of your calling network, but 10. And, you can change any of those numbers every single day if you'd like. By far the most innovative idea I've seen any cell phone company come up with and a MAJOR selling point. I have been a Verizon customer in addition to being an Alltel customer, and I completely agree that Verizon is expensive with very limited plans available in the affordable range. Hopefully Verizon will want to become more competitive and change some of their plans to include Alltel innovations and prices, either that or they will keep charging way too much for their plans because they will have way too many customers and won't care if they lose a few along the way. If that's the case, they are going to lose a lot of currently satisfied Alltel customers.
August 4, 2008 12:28 PM
CS, what you obviously don't know is that Alltel has coverage in areas that AT & T doesn't and a switch wouldn't be that easy. Some of us have chosen Alltel not only for their MyCircle plan, but also because of the coverage available to us in small towns. That is why they have so many small town customers. Why would we be excited to lose the main selling point for why we chose Alltel? MyCircle allows you to call not only 5 people outside of your calling network, but 10. And, you can change any of those numbers every single day if you'd like. By far the most innovative idea I've seen any cell phone company come up with and a MAJOR selling point. I have been a Verizon customer in addition to being an Alltel customer, and I completely agree that Verizon is expensive with very limited plans available in the affordable range. Hopefully Verizon will want to become more competitive and change some of their plans to include Alltel innovations and prices, either that or they will keep charging way too much for their plans because they will have way too many customers and won't care if they lose a few along the way. If that's the case, they are going to lose a lot of currently satisfied Alltel customers.
August 8, 2008 11:03 AM
I am an Alltel customer who hopes that Verizon will grandfather all the existing customers rate plans when we roll to Verizon. Isn't this standard operating procedure? Hopefully, Verizon will pick up some folks who have created the attractive rate plans and promotions like Mycircle from Alltel, but most likely not. On the plus side, even the Alltel employees admit Verizon has better phones to pick from.
August 16, 2008 1:00 PM
i disagree with everything that was said above. this will be a great move to me. there will be more choices of phones for us alltel costomers, which i am. i will be happy if or when this happens.
August 16, 2008 8:30 PM
The facts are simple: ??(1) Both companies stand to grow technologically & rapidly due to being on a similar network topo with such diverse features. (2)Alltel is a phenomenal company with phenomenal debt issues due to its fight for market share with the competition. (Alltel spent too much on an EXTREMELY successful customer acquisition plan... Kinda like Alltel as George Forman vs the Muhammad Ali rope-a-dope posture of the competition.) & lastly, no other company in the market (to include the regionals that were mentioned earlier in this stream) is as robust enough to make a sensible merger work without either causeing or inheriting considerable financial issues for itself combined with the tightened belt-loops of Alltel.
All in all, even if it seems like the Rebel Alliance (Alltel) is being absorbed by the Imperial Forces of the Gallactic Empire (Verizon), this is a good move for both companies. Everybody stays out of debt, there will be more diversity in the products & services offered, technology will grow rapidly & exponentially & most importantly (especially if you're a selfish consumer), the customers of both companies will reap the lion's share of the benefits in pricing & delivery of services because the bigger network that will be created from this merger must adjust to the consumer. My advice: "Don't wrap your heads around the smaller things that make Alltel unique or Verizon special." It was going to happen anyway, so just be thankful that it happens & we all get a chance for once to benefit from it. (Ask the customers who got caught up in the Sprextel merger how it worked out... Duck before they answer tho' for your own safety.)
September 3, 2008 2:47 PM
Ok, Verizon is buying Alltel because Alltel put themselfs back up for sale!
Alltel is in debt, and Verizon will bring them together.
With this, Alltel people will bee able to keep there plans and my circle.
Any Time plan changes, yes, BUT it will be on Veriozn Plans.
Verizon will lower there prices after the merge is done.
With themoney Verizon makes, they will put it towards there LET (4G) network!
With this network, large business people will switch for faster speeds and wider coverage!
Alltel people will get VZ Navagtion, V Cast Music ID, V Cast Music, V Cast Video, V Cast Mobile TV. AND MUCH MORE!
Verizon WILL NOT forget the rural area people!
They as well will get Verizons EVDO Rev A and C netowork.
This will become the largest calling network and Tower network!
Alltel will get free Roaming in those areas where Roaming was charged.
And with Lower Roaming areas, Verizon will lower there prices!
October 27, 2008 8:49 AM
Hi I was wondering if your on alltel circle plan when you merged over will you get charged all at for roaming if you stay with the circle plan? Can you talk mobile to mobile free from verizon to alltel free also ? thank u Jo
December 23, 2008 7:04 PM
ok i wrk at verizon i can tell u for fact my circle aint out the window yet!!!! n has for our calling plans! you guys might wanna stick around a lil longer to see what the new year has in store for you!!!!
December 23, 2008 7:13 PM
ok im a VZW call center rep and personally i think its good tht were taking over alltell!!! i meen weather alltell costumers knw it r not u guys where already biting off our god damn cell phone towers anyway!!! but of course alltell wouldnt tell you guys that now would they?
alltell has had a contract with alltell so that when you guys go outta coverage our towers pick your ass up!!! but you dont get roaming chagres because its automatically taken out of whatever you pay for your bill and handed to us!!!! so why should we have a contract with alltell and only recieve a percentage of what they make when we could just take them over and have it all??? lol
January 4, 2009 6:58 PM
I had been a Verizon Wireless customer from Day one. Alltell merging with VZW is a great idea. Change is good. I just hope that when they merge, Verizon will not raise their prices because of a non-existent competitor.
January 13, 2009 3:16 PM
Verizon needed alltel for the coverage are. Alltel owns 57 more areas that verizon does not cover. Alltel and Verizon do have overlapping coverages. That is why that some of the Alltels had to be divested into a trust that won't be turned into Verizon due to what the FCC and Department of Justice call a monoply. Yes Alltel has debt so does any other carrier. Alltel has the least amount of debt for a cellphone carrier from what I understood. If ALltel would never sold to the private investment firm that Verizon would never had the chance to buy Alltel. Alltel was going to merger with Sprint in 208 but due to economic situation it could never happend.
All you guys need to do some investigating before opening you mouth.