New Verizon-Alltel Merger Developments

A lot has happened since the completion of the Verizon-Alltel merger in January. With Alltel out of the picture, things have begun to heat up between Verizon and AT&T, and mobile subscribers are beginning to flock to web-enabled smartphones.
According to the Justice Department, Verizon must divest assets in 100 markets to prevent the company from becoming a monopoly. As a result, AT&T recently announced that it will pay $2.35 billion for some of Alltel’s assets that Verizon is forced to unload as part of its acquisition of the company. The purchase of Alltel’s assets will net the second largest mobile carrier in the country an extra 1.5 million subscribers.

While Verizon remains the top dog with 86.6 million subscribers, it’s worth noting that 1.47% of subscribers have ditched the company’s mobile plans and extra lines for cheaper alternatives like AT&T.

While the merger has certainly benefited Verizon, an unlikely beneficiary from the deal is AT&T. The company is not only gaining subscribers in 18 states, they’re seeing growth in iPhone sales, and appear poised to give Verizon a run for its money for the position as the nation’s number 1 mobile network.

AT&T is gaining momentum with their handset sales, too. The company added 1.2 million subscribers (consisting mostly of new iPhone users) during the first quarter. Verizon is also seeing an increase in handset sales, with customers flocking to the company’s smartphones and PDAs. In fact, 41% of Verizon’s first quarter sales consisted of smartphone and PDA sales.

Now, to the question on everyone’s mind: “Why do we keep seeing those Chad commercials?”

It looks like it’s going to take several more months for Alltel’s networks, billing systems, and other services to become integrated with Verizon. Alltel will continue to use its brand until the holiday season, when Verizon will start transitioning related marketing and signage to the Verizon brand, and the various systems will be fully integrated.

So, Chad fans (yes, there are some out there), you’ve got until the holidays to enjoy seeing the spikey-haired Alltel spokesman between your favorite shows.

4 Trackbacks/Pingbacks

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  4. […] many people know by now, Verizon was forced to divest assets in 100 markets to prevent the company from becoming a monopoly. AT&T scooped up most of the divested assets […]

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