Verizon Plots to Purchase Alltel

June 4, 2008 in Alltel, Industry News, Rumor Mill, Verizon

The rumors have circulated before without action, but according to CNBC, Verizon is on the verge of acquiring the 5th largest Wireless Carrier in the United States (Alltel) for $27 Billion Dollars.

The current American Mobile market looks like this:

  • AT&T: 71.4 million subscribers
  • Verizon Wireless: 67.2 million subscribers
  • Sprint-Nextel: 52.8 million subscribers
  • T-Mobile: 30.8 million subscribers
  • Alltel: 13.17 million subscribers

The purchase of Alltel would allow VZW to hurdle above AT&T as the #1 American mobile carrier with nearly 10 million more subscribers - a huge margin.

The move would further consolidate what is already a race with limited horses. In the past few years AT&T and Cingular merged (well, kind of) and Sprint bought Nextel. In addition to Verizon buying Alltel, rumors have persisted that T-Mobile is interested in the possible purchase of Sprint.

If both deals happened, the market would look like this (estimated):

  • T-Mobile: 83.6 million subscribers
  • Verizon Wireless: 80.37 million subscribers
  • AT&T: 71.4 million subscribers
  • Next largest under 10 million subscribers

Will this consolidation be good or bad for consumers? Well, while the mobile carriers are consolidating we’re seeing mobile software opening, thanks in part to Google’s Android. But with all this change, where is the wireless industry heading?

We’ll keep you posted.

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