AT&T ready to pick up some Alltel assets from Verizon

Back when Verizon acquired Alltel, the FCC would only give the nod under certain conditions. One of those conditions was that Verizon divest some of Alltel’s assets after the acquisition so the market didn’t look like a Big Red monopoly. As was expected, AT&T is going to pick up a good chunk of those assets for about $2.5 billion. A bargain. Of the 85 divested markets spanning 18 states, AT&T will scoop up about 24 markets and we’re sure the company is being pretty selective as a good chunk of those markets are in less than desirable areas in terms of profitability. Expect the transactions, including those assets left to be divested after AT&T’s transaction, to be concluded by early July.

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25 Responses to “AT&T ready to pick up some Alltel assets from Verizon”

  1. 1
    Richie says:

    Damn So what does this mean then for Verizon?

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  2. 2
    Richie says:

    Is Verizon still on top ?

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  3. 3
    gixxerjoe says:

    This was in the agreement that Verizon had to divest markets that overlapped with theirs. Creating a monopoly. This has little effect for Verizon because they already have existing service in those areas. But this will have a major impact on Alltel customers in those areas. Because they will now become AT&T customers.

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  4. 4
    ryan says:

    I do not believe this means any of the Alltel customers will become T customers it just means that T will get the assets in these markets ie cell towers and other equipment. I do not believe customers are considered assets.

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  5. 5
    DavidThande says:

    Hey I gave Zach this News Flash this morning. Did Marc peak in your inbox?

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  6. 6
    BLacKuLa says:

    This sound like a straight bitch move by the FCC to help a lower class company to keep up. Verizon brought Alltel but force to share at a cheaper price? Thats fuck up. Way to go FCC, way to go. So i guess this will make a new commercial, more bars for more spotty 3G and drop calls? Priceless.

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  7. 7
    VZW says:

    Verizon has 10 million or more people then Att. This will not put them on top an will be no where near close to verizons customer base. I feel sorry for the Alltel customers because GSM is horrible out west.

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  8. 8
    andy says:

    So does this mean we will finally be getting At&t in south dakota and getting a little more cellular variety?

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  9. 9
    gixxerjoe says:

    @ Ryan, At&t will gain the alltel customers as well. read the artical on at&t’s site

    http://www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=26804

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  10. 10
    gixxerjoe says:

    woops wrong link sorry

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  11. 11
    JB says:

    They gain customers not assets, their sites possess zero technology att could use

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  12. 12
    zephxiii says:

    Blackula, that was a pretty dumb comment. Think of it as preventing monopolies and ensuring competition.

    I believe they gain the customers, and the network that they are using.

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  13. 13
    Gabe says:

    So what markets become att

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  14. 14
    stitch0852 says:

    So nobody wants to say which areas of those states will be affected. As I live in one of those 18 and I am an Alltel customer, (as well as being rural) I can only hope we are not part of this. I can just imagine the costs we will face to get new phones since our phones are not compatible with Verizon/Alltel and there goes our plan out the window to be at the mercy of another large conglomerate looking out for their bottom line.

    I read their article. They claim that these new customers will benefit from the 3G network, yet they state it is only available in larger areas. We are RURAL customers who will probably be using cans and string to talk to each other if we are unfortunate enough to get caught up in this.

    It is a shame that customers are pawns and nobody feels the need to inform the customers they have changes coming.

    The customer takes it in the shorts and the FCC, Verizon/Alltel, and AT&T are all on board and accepting of this.

    A failing economy and those who cannot afford it now have to come up with bucks to replace their phones or accept junk phones that are given “free” to suck you into a contract.

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  15. 15
    JoeTour says:

    Did altell use CDMA or GSM ? And when it switches dod they change frequency or are ATT customers by name only ?
    Ppl with actuall knowledge (no fanboy’s) shoud reply… Thanks in advance.

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  16. 16
    GSM says:

    Good…with a driving focus on improving their customer service and network…AT&T might finally become a good company to do business with…and I for one long for that in a GSM carrier (God help you if you if you say one thing about T-Mobile). Give it a year or two and AT&T might be worthwhile (I have heard rumors they have a big initiative to overhaul their customer service).

    Maybe I’m wrong to hope for a good company not using a dying technology with a time of very strange transition dead ahead (using CDMA for voice until 2020???…have fun with that handset selection).

    But I guess like everything…we will just have to wait and see.

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  17. 17
    Scott says:

    @VZW

    How do you say gsm coverage sucks in the west? At

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  18. 18
    JoeTour says:

    phone scoop says “altel is all CDMA and ATT did not provided a time frame on how they will move 1.5 Mill subscribers to GSM”
    —read: “trouble ahead”. can see the next BGR headline, and it has nothing to do with the samsung epix………………………….

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  19. 19

    You might want to know that “T” may be the NYSE
    symbol for AT&T, but in the wireless world, T stands for DeutscheTelekom, owner of T-Mobile.

    What gets transferred is spectrum (frequencies), which are the only thing carriers are interested in. The base stations, whether GSM or CDMA, aren’t worth the cartage costs. Verizon is in the midst of installing 700MHz right now and couldn’t care less what Alltel leaves on its sites. To a lesser extent, the same is true for AT&T.

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  20. 20
    reecey says:

    my google-fu is strong – these are the proposed divested markets

    http://picasaweb.google.com/kallandahn/CellGeek?authkey=Gv1sRgCLr4_uzW2IaRoQE#5227443862658158050

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  21. 21
    chris says:

    Alltel originally used GSM, and switched in the early 2000s to CDMA. Personally I think at&t should be shut down since when SBC took over they have been shitty ever since. Certainly never truthful about anything with their customers.

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  22. 22
    turbodolphin says:

    i was under the impression that it is “spectrum” that wil be divested to at&t. meaning at&t will not take alltel towers/customers (not compatible) they will simply be able to expand existing network in areas “they “previously couldn’t (fcc)

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  23. 23
    Jon says:

    I hope this means AT&T will be able to setup shop in Montana.

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  24. 24
    Stephen says:

    I read some of this forum here is my opinion and some facts.
    Europe users are %80 Pre Pay Customers NON contract. All phones there are GSM giving users ability to move from Network to network and travel with no roaming. Instead of $1500 bill when I travel I had a $60 bill for 30 days in 4 countries.
    United states uses Largely CDMA Non Sim card phones. This technology is Years in the past from GSM. Verizon one of our largest Cell phone providers is using flint stone equipment. Amazing inst it. It is Inevitable that Verizon will eventually have to switch to GSM to keep up with the worlds technologies ON that day I will get a Verizon phone. Till then I enjoy my freedom of taking my iPhones to any GSM provider in the world and make local calls.

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  25. 25
    lollie says:

    well i love the way att is going to take over alltel cause alltel phones are exspinsive and they SUCK i went threw 4 motorola razr cause they kept blacking out on me and then the lg scoop well im not even going to start with that one right now i have the samsung delve it is cool but freezes up during the time im on the internet and i honstly belive with att we will have better phones to choose from and better service switchh soon and give me and my family new phones

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