Verizon Purchases Alltel With FCC’s Blessing
Verizon Wireless is now able to purchase Alltel, after FCC approved this merger deal of the CDMA wireless carriers. With this move, Verizon would get enough subscribers to surpass AT&T, the current market leader in the US. However, before the acquisition takes place, FCC required that Verizon would cease operating in 5 small markets, in order to increase the competition.
This is a $28 billion transaction we’re talking about, which will make Verizon Wireless the largest US wireless carrier, by subscriber count. Before all is said and done, FCC also required that Verizon keeps Alltel’s roaming agreements with other rural wireless carriers for the next 4 years.