Verizon Wireless said today it would buy rural mobile carrier Alltel for $28.1 billion, including debt, to leapfrog AT&T and become the biggest U.S. wireless group.

Under the terms of the agreement in the US, Verizon Wireless will acquire the equity of Alltel for 5.9 billion dollars cash and assume the company's debt of 22.2 billion dollars.

Under the terms of the deal, Verizon Wireless will acquire the equity of Alltel for $5.9 billion dollars cash and assume the company's debt of $22.2 billion dollars, mostly incurred when Alltel was taken private in November in a leveraged buyout by TPG Capital and GS Capital Partners.

Verizon Wireless and Alltel, which has more than 13 million customers, together would have more than 80 million customers.

The merger will accelerate deployment of the so-called fourth generation of wireless services, which include voice, data and video over mobile devices, the companies said.

The two firms hope to complete the deal by the end of the year, subject to regulatory approval.

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