Verizon Wireless will have the most customers after Alltel merger
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Thanks to Gizmodo for this story. I love the picture they have on this article. As the article states, Verizon Wireless will absorb all of Alltel’s 13 million customers, putting the wireless giant at a total of 80 million customers. Verizon has spent roughly $6 billion USD but because of this aquisition, Verizon has spent a total of roughly $28 billion, $22 billion of that residing in Alltel’s debt.
Now, how does the 5th leading wireless phone provider get $22 billion in debt? And secondly, why would Verizon foot the bill for Alltel’s debt? Besides being able to call themselves the #1 US cellular carrier, would Verizon really make that much of a dent in AT&T’s market? Especially when the 2nd generation iPhone is due out very soon and AT&T is already gearing up for the massive invasion.
So what does this mean for the consumer? Because Verizon is all about reliable service and best coverage, they want to maintain this status. Alltel has coverage in many rural areas in which Verizon and AT&T pay Alltel to use their transmission towers. With this merger, Verizon will be in full control of these phone towers, leaving AT&T with less coverage in these area, thus expanding the range of Verizon’s network. So good news for Verizon customers (and Alltel customers), your phone will now work in more areas so we can “hear you now.”
