14 DAY TRIAL // Verizon Wireless, currently the second largest mobile operator in the US, might soon buy Alltel, which ranks only fifth when it comes to mobile subscribers, thus becoming the largest carrier in the US as well as on the whole American continent (including North, Central and South America, of course).
Verizon has, at the moment, a bit over 67 million US subscribers, with about 4 million less than AT&T (formerly known as Cingular). With the acquisition of Alltel (13 million customers), Verizon will begin to offer services to more than 80 million mobile users.
According to Reuters, Verizon wants to offer 27 billion USD for Alltel - $23.35 billion will be used to pay the debts Alltel has, while the rest of 3.65 billion will go to Alltel's current owners, TPG Capital and Goldman Sachs Group.
A joint venture between Verizon Communications and Vodafone, which own 55% and respectively 45% of the company, Verizon Wireless is based in Basking Ridge, New Jersey and it began to offer mobile services under this name on the 4th of April 2000.
If Verizon is indeed buying Alltel, AT&T will probably never get to be the first US carrier again. Unless it follows Verizon's example and tries to buy one or more smaller operators. For example, it could acquire TracFone (10 million users), U. S. Cellular (6 million users), MetroPCS (4.4 million users) or Cricket (3 million users). Sure, these are only theoretical options for AT&T, as buying a mobile carrier is (obviously) not a simple thing to do.
For the moment, neither Verizon nor Alltel officials made any declarations about the rumored deal. Anyway, we will find out pretty soon if Alltel's acquisition is real or not and if the days of AT&T as the first US carrier are heading to an end.
UPDATE: The acquisition of Alltel by Verizon is now official, as most of the details have appeared on Verizon's website, at this address. What can we say: good bye No. 1 AT&T.