Verizon Wireless is close to sealing a roughly $27 billion deal to buy Alltel, the country's fifth-largest wireless carrier by subscribers, aiming to overtake AT&T as the top U.S. wireless service.

If consummated, Verizon's move would be the biggest telecom deal since AT&T bought BellSouth at the end of 2006. Adding Alltel's 13.2 million customers to Verizon Wireless' 67.2 million would create the largest wireless carrier in the country, far ahead of AT&T with 71.4 million subscribers. Verizon would take on about $23 billion of Alltel debt, a surprise to many analysts as it came only seven months after Alltel was taken private by TPG Capital and GS Capital Partners.

A deal could save Verizon Wireless more than $1 billion per year. Verizon Wireless now pays hundreds of millions in roaming charges every year to Alltel.

Verizon had been considered a natural suitor for Alltel before it was sold to private equity as Verizon and Alltel use the same CDMA wireless network technology. Sprint Nextel, which has been struggling with customer losses, also uses CDMA.

Both Verizon Wireless and Sprint have roaming agreements allowing their customers to use Alltel's network in areas where they do not have coverage themselves.

1. Posted by McGirk	Thu Jun 05, 2008 9:05 am
Sale went through, and I am NOT HAPPY!
2. Posted by man1234	Thu Jun 05, 2008 2:34 pm
so wait. the sale went through so now verizon owns alltel?
3. Posted by McGirk	Fri Jun 06, 2008 12:11 pm
Pending government approval.
4. Posted by getLitnow	Fri Jun 06, 2008 12:57 pm
BWUHAHAHAHA! <-- evil world domination laugh. yeah, actually I'm not so excited about this either. now how am I supposed to "Come and get my love"?
5. Posted by McGirk	Sat Jun 07, 2008 9:10 am
I'm mad, IN calling isn't close to MyCircle in value, almost no one has Verizon in this area, so big whoop.
6. Posted by vzwpeon	Sat Jun 07, 2008 10:06 pm
My corporate masters drew us peons in a meeting advising us that alltel network should be assimilated to our own within 2 years pending government approval. Alltel is still a seperate company till 2009 This is a long time coming and been in the works now for quite some time. Alltel will be assimilated its network will become our own. LOL sorry I just couldnt resist
7. Posted by McGirk	Wed Jun 11, 2008 9:48 am
Tell your Masters that they are stupid . . . should have bought Alltel last year when they had no debt, sure the company itself would have cost more, but they'd have paid less in the long run. Alltel I believe wanted 13bil. So Verizon buys them for 5bil, but takes on 22bil in debt, most likely the debt is largely the financing from the previous purchase. Financially, not the best move Verizon could have made, considering they are already up to their eyeballs in debt.
8. Posted by cmoser7	Wed Jun 11, 2008 8:21 pm
I want to know if the next commercial will have the Wizard making Chad disappear?
9. Posted by cmoser7	Wed Jun 11, 2008 8:22 pm
I'm mad, IN calling isn't close to MyCircle in value, almost no one has Verizon in this area, so big whoop. Will the IN calling with Verizon and Alltel start by the end of the year or will it not be until next year?
10. Posted by HelloMoto13	Mon Jun 23, 2008 10:44 pm
I think this is a good thing Verizon will now have My Circle and ALOT of new phones this will be cool when will is start. 2009?
11. Posted by McGirk	Thu Jun 26, 2008 10:40 am
My guess is the combination of Alltel and Verizon on IN calling will be done sometime late this year or early next year. Verizon might get MyCircle, or they may decide they don't need it. I would consider switching carriers if they decided to do away with My Circle, the people I call most frequently are on Sprint and Alltel, but mostly Sprint. With MyCircle it doesn't matter, but without it, it would.

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