Verizon Wireless Completes Alltel Acquisition

Verizon Wireless completed its purchase of Alltel Corporation for approximately $5.9 billion. Immediately prior to the closing, the Alltel debt associated with the transaction, net of cash, was approximately $22.2 billion.


The acquisition expands Verizon Wireless' network coverage to approximately 290 million people, nearly the entire United States population, and increases the company's customers by 12.9 million, after conforming adjustments and before required divestitures, making it the largest wireless carrier in the country with more than 83.7 million total customers, based on third quarter 2008 reported results from both companies. Approximately 2.1 million of those total customers are in markets that will be divested by Verizon Wireless in the coming months.


Verizon Wireless said it plans to maintain Alltel's existing GSM networks in retained Alltel markets to continue serving the roaming needs of GSM carriers' customers. Verizon Wireless will re-brand Alltel operations in the retained markets in phases, beginning in the second quarter and continuing through the third quarter of 2009, as billing conversions are completed throughout the country.


Furthermore, Verizon Wireless has placed licenses and assets for the markets to be divested in a management trust. The trust will continue to operate the markets under their current brands until they are sold to one or more buyers. As a result, these markets will not be integrated into Verizon Wireless operations.
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