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Alltel Now Part Of Verizon's Circle

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By RICHARD MULLINS

rmullins@tampatrib.com

Published: January 10, 2009

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

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

For now, Alltel customers will keep the calling plans they have 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 contracts expire, Alltel customers will have to sign up with Verizon Wireless or another provider.

The "vast majority" of Alltel customers who stay with Verizon will be able to keep their current phones after the transition because the two companies use similar technology, Verizon officials said. Less than 1 percent of Alltel customers have older phones that will need to be upgraded to work on the Verizon network.

In Florida, Alltel was especially strong in the Panhandle and Gulf Coast regions, said Verizon spokesman Chuck Hamby, with little if any penetration in Orlando, Miami and southeast Florida areas.

Verizon, by contrast, was strongest in those urban areas, so the two networks will match well to cover the state after the deal.

Because Verizon and Alltel overlap significantly in many other U.S. markets, federal regulators required Verizon to divest Alltel operations in 105 markets in 24 states, but none in Florida. Most of the areas divested are rural, 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 this year.

Employee cuts at Alltel are likely. Alltel employs about 700 people in Florida. 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, which has 85,000 employees, hopes that cuts between the two companies could save it $9 billion.

Information from The Associated Press was used in this report.

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