Wraith
01-16-2009, 04:12 PM
From Engadget Mobile (http://www.engadgetmobile.com/2009/01/14/verizon-wireless-closes-alltel-acquisition-lays-out-path-forwar/), I found this Verizon release (http://news.vzw.com/news/2009/01/pr2009-01-09.html) which covers some of the details of the Verizon/Alltel merger.
Notably, it lists a larger number of "Divestiture Markets," which won't be integrated into Verizon.
If I'm an Alltel customer in one of these markets, what should I expect? Or if I go out and sign a 2-year contract with Alltel today, will I be forced to switch to some other non-Alltel/Verizon carrier before the contract is up?
I was expecting that merging Alltel and Verizon would result in great range for the carrier, locally and nationally, but if they abandon my local market, I might have to choose another carrier which has poor coverage elsewhere?
Divestiture Markets
As a condition of the regulatory approvals by the DOJ and the FCC that were required to complete the Alltel purchase, Verizon Wireless will divest overlapping properties in 105 markets across 24 states. Alltel operations will be divested in most of these markets. Verizon Wireless will divest its own pre-merger operations in four markets, as well as the Rural Cellular Corporation (RCC) operations in southern Minnesota and western Kansas, operating under the Unicel brand, which Verizon Wireless acquired last August.
Verizon Wireless has placed licenses and assets for the markets to be divested in a management trust. The trust will continue to operate the markets under their current brands until they are sold to one or more buyers. As a result, these markets will not be integrated into Verizon Wireless operations.
A little searching shows this page (http://cellgeek.blogspot.com/2008/07/everyone-is-paying-very-close-attention.html) from a few months back, which maps out some of the proposed divestiture markets.
*Edit* Here's a more recent map:
http://justsmog.com/mapf.gif
From another site (http://www.telecompetitor.com/node/736):Ahead of their Alltel acquisition regulatory review, Verizon filed a letter with the FCC outlining their wireless spectrum divestiture plans. In hopes of reducing “market dominance” fears, they plan on divesting of 85 markets, including all of North and South Dakota, and rural serving areas in California, Colorado, Idaho, Montana , Minnesota, Kansas, Illinois, Nevada, New Mexico, Utah, Wyoming, Georgia, Virginia, North Carolina, South Carolina, and Ohio. Larger markets in the divested territories include Billings, Great Falls, and Casper. The divested territories may include either Alltel or Rural Cellular territories. Verizon’s acquisition of Rural Cellular is expected to close later this year. Additionally, Verizon committed to maintaining all existing roaming agreements with “regional, small and rural carriers” for the length of those existing agreements. Of course, once those existing agreements expire, those regional, small and rural carriers will need to negotiate a new deal. Judging by most recent roaming agreements between large and small carriers, “negotiate” can be a very relative term.
This potential opening of 85 markets presents opportunities with competitive implications. The usual suspects of AT&T and T-Mobile will surely take a look at acquiring these markets, and so will smaller carriers like MetroPCS and Leap. But perhaps even smaller rural carriers may get an opportunity to gain a foothold in these markets and offer a true competitive option to the large national brands. Smaller carriers, many of whom currently lack wireless assets, probably have much more interest in serving these rural territories. Should public policy mandate that the divested properties be given preferential acquisition treatment to carriers other than the usual suspects? Or maybe a consortium of rural carriers (new or existing) should consider trying to gain these wireless assets. These are questions worth debating.
Notably, it lists a larger number of "Divestiture Markets," which won't be integrated into Verizon.
If I'm an Alltel customer in one of these markets, what should I expect? Or if I go out and sign a 2-year contract with Alltel today, will I be forced to switch to some other non-Alltel/Verizon carrier before the contract is up?
I was expecting that merging Alltel and Verizon would result in great range for the carrier, locally and nationally, but if they abandon my local market, I might have to choose another carrier which has poor coverage elsewhere?
Divestiture Markets
As a condition of the regulatory approvals by the DOJ and the FCC that were required to complete the Alltel purchase, Verizon Wireless will divest overlapping properties in 105 markets across 24 states. Alltel operations will be divested in most of these markets. Verizon Wireless will divest its own pre-merger operations in four markets, as well as the Rural Cellular Corporation (RCC) operations in southern Minnesota and western Kansas, operating under the Unicel brand, which Verizon Wireless acquired last August.
Verizon Wireless has placed licenses and assets for the markets to be divested in a management trust. The trust will continue to operate the markets under their current brands until they are sold to one or more buyers. As a result, these markets will not be integrated into Verizon Wireless operations.
A little searching shows this page (http://cellgeek.blogspot.com/2008/07/everyone-is-paying-very-close-attention.html) from a few months back, which maps out some of the proposed divestiture markets.
*Edit* Here's a more recent map:
http://justsmog.com/mapf.gif
From another site (http://www.telecompetitor.com/node/736):Ahead of their Alltel acquisition regulatory review, Verizon filed a letter with the FCC outlining their wireless spectrum divestiture plans. In hopes of reducing “market dominance” fears, they plan on divesting of 85 markets, including all of North and South Dakota, and rural serving areas in California, Colorado, Idaho, Montana , Minnesota, Kansas, Illinois, Nevada, New Mexico, Utah, Wyoming, Georgia, Virginia, North Carolina, South Carolina, and Ohio. Larger markets in the divested territories include Billings, Great Falls, and Casper. The divested territories may include either Alltel or Rural Cellular territories. Verizon’s acquisition of Rural Cellular is expected to close later this year. Additionally, Verizon committed to maintaining all existing roaming agreements with “regional, small and rural carriers” for the length of those existing agreements. Of course, once those existing agreements expire, those regional, small and rural carriers will need to negotiate a new deal. Judging by most recent roaming agreements between large and small carriers, “negotiate” can be a very relative term.
This potential opening of 85 markets presents opportunities with competitive implications. The usual suspects of AT&T and T-Mobile will surely take a look at acquiring these markets, and so will smaller carriers like MetroPCS and Leap. But perhaps even smaller rural carriers may get an opportunity to gain a foothold in these markets and offer a true competitive option to the large national brands. Smaller carriers, many of whom currently lack wireless assets, probably have much more interest in serving these rural territories. Should public policy mandate that the divested properties be given preferential acquisition treatment to carriers other than the usual suspects? Or maybe a consortium of rural carriers (new or existing) should consider trying to gain these wireless assets. These are questions worth debating.