TBO.com - TBO is Tampa Bay Online

Verizon Has Finalized The Purchase Of Alltel Wireless

ADVERTISEMENT

By RICHARD MULLINS | The Tampa Tribune

Published: January 9, 2009

Verizon Wireless completed its $5.9 billion purchase of Alltel Wireless today, merging two significant cellular phone companies in the South.

Together with 12.9 million Alltel customers, the combined company will have 83.7 million customers, making it the nation's largest cellular provider.

For now, Alltel customers will keep calling plans under contract, including features such as the MyCircle unlimited calling plan. Verizon expects to mail details of changes to customers in the coming months.

Once their current contracts expire, Alltel customers will have to sign up with Verizon Wireless or another provider.

The "vast majority" of Alltel customers will be able to keep their current phones after the transition to Verizon Wireless because the two companies use similar technology, Verizon officials said.

Because Verizon and Alltel overlap significantly in many markets, federal regulators required Verizon to divest Alltel operations in 105 markets in 24 states, but none in Florida. Most of those are rural areas, with a total of 2.1 million Alltel customers.

In markets where Verizon plans to keep Alltel operations, the Alltel brand will fade away from advertising and marketing through the third quarter of 2009.

Employee cuts at Alltel are likely. Alltel employees "below the executive level" will continue in their present jobs during the transition, Verizon said, as "Verizon Wireless assesses staffing needs required to best serve customers and achieve synergies."

Verizon hopes that cuts between the two companies could save it $9 billion.

Reporter Richard Mullins can be reached at (813) 259-7919 or rmullins@tampatrib.com.

Loading Comments...

Email Print

ADVERTISEMENT