Verizon Seeks Extension For Alltel Spinoff - InformationWeek
IoT
IoT
Mobile
News
4/30/2009
02:57 PM
50%
50%
RELATED EVENTS
Using Threat Data to Improve Your Cyber Defense
Aug 10, 2017
Attend this webinar to learn how you can determine which threats pose the greatest danger to your ...Read More>>

Verizon Seeks Extension For Alltel Spinoff

The company says it needs more time to divest in wireless assets it obtained from Alltel because of difficulties related to the economic climate.

Verizon Wireless is seeking some more time to divest wireless assets it acquired when it purchased Alltel.

By purchasing the majority of Alltel for $28.1 billion last year, Verizon became the largest U.S. carrier, with about 80 million subscribers. Government agencies approved the deal with the requirement that Verizon divest in certain markets where its wireless assets overlapped.

The company's deadline was originally May 9, but Verizon has asked for an additional 60 days to complete the process.

"Although the company has diligently managed the divestiture process, the sheer size and complexity of the divestiture coupled with the current economic conditions have forced bidders to conduct far more due diligence than usual," Verizon said in an official filing. "This has made it impossible to complete the divestitures within the initial 120-day period."

Alltel is not finished as an independent carrier, though, as it will continue to provide wireless services to about 2.2 million customers in 22 states. It continues to grab new cell phones and smartphones, and it recently picked up the clamshell BlackBerry Pearl Flip.

With about 80% of U.S. customers already having cell phone service, the carriers are finding it increasingly tough to have organic subscriber growth. This may lead to more acquisitions, as the Alltel deal was a key factor in Verizon's strong first-quarter results because it added more than 13 million new subscribers.

Many are expecting U.S. Cellular to be the next major acquisition, as it has more than 6 million customers and is reportedly facing pressure to sell. Because it uses the CDMA technology for its network infrastructure, it could be an attractive target for Sprint Nextel or Verizon Wireless.


InformationWeek has published an in-depth report on the use of business software on smartphones. Download the report here (registration required).

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Strategies to Conquer the Cloud
Chances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll