14 DAY TRIAL // Verizon Wireless, the joint venture of Verizon Communications and Vodafone, announced that the acquisition of Alltel Corporation from Atlantis Holdings LLC had been completed. The transaction was first revealed on June 5, 2008, and Verizon Wireless paid around $5.9 billion for the equity of Alltel. The company also acquired almost $22.2 billion of Alltel's debt.
Verizon Wireless’ network coverage is expanded with this deal to approximately 290 million people, making the company the largest carrier in the United States. The purchase increased the company’s customers by 12.9 million, to a total of more than 83.7 million, a number based on the reports presented by the two companies in the third quarter of 2008.
Verizon Wireless will be divesting some markets in the following months, with around 2.1 million customers placed in the respective areas. The divesting has been required by the Department of Justice (DOJ) and the Federal Communications Commission (FCC), as a condition of the merger approval. The company announced that it planned to integrate networks, converting billing systems and upgrading high-speed wireless broadband services in the markets that would be retained and combined with Verizon Wireless’ operations. Alltel’s existing GSM networks will be maintained, so as to provide GSM carriers’ customers with the necessary roaming services.
“Alltel customers in markets to be retained will receive a letter during the next few weeks, informing them about the purchase and the wide array of new and advanced services that will be available to them when they transition to Verizon Wireless, including the latest wireless data services delivered on the nation’s largest 3G high-speed wireless broadband network. In addition, when Alltel systems are upgraded in the near future, Alltel customers will have access to the largest mobile-to-mobile calling community in the country, allowing them to use their mobile-to-mobile minutes for calls with Verizon Wireless customers without using their plan minutes,” the company stated in the press release announcing the transaction.
The company also announced that it would maintain the availability of My Circle as well, yet it was rather uncertain for how long. “My Circle will continue to be available to Alltel customers while they are on an Alltel price plan. At this time, Verizon Wireless is evaluating whether a similar plan will be offered to new and existing Verizon Wireless customers,” the company added.