Verizon Wireless completes Alltel purchase, becomes No. 1

Verizon Wireless will become the nation's largest wireless provider today with a whopping 83.7 million customers as it completes its acquisition of Alltel. That means about 28% of people in the U.S. are Verizon customers. It also means that yes, Verizon, we can hear you now.

Verizon said in a release today that it would keep using the Alltel brand for the next few months and that it would begin rebranding in the second quarter. Sadly, that probably means slapping Verizon names on the Alltel properties, rather than some strange combination such as AllVerizon, Veritel or Allizon. Too bad they don't want to use an anagram of Verizon Alltel: the best one we could find was Viral Tell Zone, which seems fitting for a wireless company.

The merger was announced in June, when Verizon said it would pay $5.9 billion for Alltel and acquire even more billions worth of debt to add 13 million customers. It took months to clear regulatory hurdles, but the deal received Federal Communications Commission approval in November and Federal Trade Commission approval this month. The FCC had also cleared a merger between Sprint and Clearwire that was completed last week.

Under the terms of the deal, Verizon has to divest overlapping properties in 105 markets. Many of those are in rural areas in South Dakota, Kansas and Montana.

-- Alana Semuels

Photo: Maybe Verizon bought Alltel so it could own this cool car. Credit: szkea via Flickr

Comments

[Bill]

Verizon has excellent technical service, but the marketing is pushy and billing practices too complicated. Still, they are the best around. The new fiber-optic service is excellent, other phone and cable outfits will have to follow suit.

[Al]

But what is the deal for customers out of contract or with a family plan with one member under contract? What about my circle? I suspect the executives know exact details of their compensation prior do the deal closing but the customers need to wait. . .months?! As usual, management first, customers second. How RUDE

[Kathy]

I absoulutely agree with Al (comment Jan. 10, 2009) It sure would be nice for the Alltel customers to know what they are facing and how it will affect the family plans we are still under contract for with Alltel. I am really going to be tourked off if we end up loosing all out perks, esp. since I have been with the company since they were celluar one. so about 28 years! PLEASE FILL US IN SOON.

[heather]

I believe that now that verizon bought altell that they should do the circle so more people would buy and they can compete with tmobile because I spend alot because there is not circle and I want to switch back to tmobile because it has the flex plan which save people because its like a contract just no extra charges if late or you don't have the money to ay and the faves are great too.

[Laura]

Most important of all, who is going to represent the new conglomerate--Chad or the Geek with the Glasses?

[Summer]

I personally think it may be a great thing! I mean, Alltel is VERY small and has a less than great selection of cool types of new phones. I'm glad I'm going to have Verision soon! (Mainly for the Blackberry Storm! :D) That's right Verision, we can hearr you now. :]

[Charlie]

I have heard this about a thousand times. " Verizon is merging with Alltel ! "
The question is when are they, I know they already made the transaction but when are the products going to work with the same plan. I want to use the iphone 3g S on Verizon because i do not agree with Alltel's plan.

[taylor brown]

will people that are currently with alltel have to buy a verizon phone? i was wondering because i would like to do that, but i didnt know if i would have to pay retail value.

[Stac]

I work at a cell phone store, and while I cannot speak for alltel, this is what i have noticed recently:

although the projected date for the merger is sometime during the month of october, alltel has continued to offer its customers 2-year contracts, be they first-time activations or extensions of current contracts. Once the merger with Verizon is completed, customers whose contracts have not ended will be forced to switch to Verizon. This means cancellation fees and possibly having to buy new phones. While Verizon and Alltel do work with the same type of CDMA towers, the Alltel phones will require unlocking in order to work with Verizon contracts. For those of you who are nearing the end of your contract with Alltel, my best recommendation would be to switch to Verizon while you still can, rather than extend your current contract. It will save you money, paperwork, and hassle in the long run.

[Stac]

Also, to Charlie:

The iPhone 3GS in its current form works off GSM frequency, NOT CMDA. Therefore, even if it is unlocked it will still not be compatible with Verizon's towers, because they operate off of two completely different frequencies. It's like trying to compare apples and oranges - sorry to give you bad news.