Alltel Commercial - Lemonade Stand

The good people at Alltel have sent me over their newest TV Commercial which is set to begin airing tomorrow. Its called “Lemonade Stand” and depicts the “Sales Guys” from their childhood days… its cute and the MyCircle advertisements are certainly catchy:

What IS surprising is that Alltel has continued to run advertisements bashing Verizon Wireless although they have been acquired by Verizon Wireless - FCC approval is pending and the deal will likely clear before the year ends.

Maybe that’s why the Verizon guy just stands there in this commercial… and isn’t the one yelling, “YOU’RE STILL A DING DONG!”

Here are the newly introduced My Circle plans that Alltel is promoting:

Alltel recently introduced new “My Circle” Family Choice Plus plans. For $84.99 per month, customers will receive two lines with 1,000 shared minutes and the ability to call any 10 numbers on any network.  Also, customers can receive two lines with 2,000 shared minutes and unlimited calling within their “Circle” of 20 numbers for $114.99. In addition to the unlimited calling within their “Circle,” Family Choice plan customers will receive unlimited mobile-to-mobile calls and unlimited nights and weekends. Customers will also have the ability to choose either free evening calls starting at 7PM or 1,000 text/picture/video messages. The plans include unlimited texting to their “Circle of Friends” and other Alltel customers.

[Source Alltel PR]

Verizon Makes Concessions For Alltel

Verizon’s (pending) aquisition of Alltel is a BIG move in the wireless world. With a nice coverage in the more “rural” markets, Alltel gives Verizon reach to areas it didn’t otherwise serve while customers in these areas benefit from Verizon’s huge network - arguably the biggest and fastest.

Before the deal can go through the ominous FCC must approve the deal, with monopolistic tendencies standing in the way. However, Verizon has offered to part ways with nearly 1.7 Million Alltel customers (13%) to prevent a scenario where Verizon would be the only wireless provider in certain regions. That 1.7 million come from 85 markets in 18 different states.

The deal would make Verizon Wireless the single largest mobile carrier in the United States, surpassing AT&T in number of subscribers. We assume Verizon has their fingers crossed that the deal will go through before the turn of the new year, when a new administration (and Congress) would reign over the issue.

Clearly, Verizon is prepared to make the moves necessary to please the powers at be. Will any other concessions be in the mix? Will the purchase ultimately go through? For onlookers… its now just a wait-and-see.

[Via RCRNews, Phonescoop, Engadget]

Alltel Adds Free Texting!

Yesterday, Alltel annoucned the addition of free texting to it’s “My Circle” offer. Now, all “My Circle” plan holders can send UNLIMITED text, video and picture message between people in their “circle”, as well as all other Alltel customers with Alltel’s new “My Circle” offer starting at only $7.99 every month.

Now, there is a couple plans. The lowest one of course starting at $7.99 giving you 400 text/video/picture messages to send between people not within your “circle”. If you think you’ll be workin’ your thumbs a little harder, there’s also a $12.99 pack which gives you 1,000 instead of 400. And for extreme thumb jazzercizers you’re in luck… they still are offering an unlimited message pack which is $19.99 a month that gives you both unlimited messaging and mobile browsing.

Alltel folks might want to snap this deal up (before they become Verizon folks). Then you can go over to your friend’s and they’ll see your buff thumbs and be all like, “Whoa, you’ve been working out!” — it’s a total chick magnet.. let me live my dream!

[Via Phone Scoop]

Deep Talks to Done Deal: Verizon Buys Alltel

That didn’t take long. Less than 24 hours after a CNBC article verified Verizon was in “deep talks” to purchase Alltel, the deal closes. The final figure is $28.1 Billion - which is a steal considering what Alltel brings to their network, including reach to rural areas and network compatibility. A synergy exists there for sure.

The deal should close by year end so long as it gets regulatory approval without too much trouble. Here is the full press release:

June 5, 2008

VERIZON WIRELESS TO ACQUIRE ALLTEL; WILL EXPAND NATION’S MOST RELIABLE WIRELESS NETWORK

Verizon Wireless has entered into an agreement with Alltel Corporation and Atlantis Holdings LLC, an affiliate of private investment firm TPG Capital and GS Capital Partners, to acquire Alltel Corporation in a cash merger. Verizon Wireless is a joint venture of Verizon Communications (NYSE: VZ) and Vodafone (NYSE and LSE: VOD).

Under the terms of the agreement, Verizon Wireless will acquire the equity of Alltel for approximately $5.9 billion. Based on Alltel’s projected net debt at closing of $22.2 billion, the aggregate value of the transaction is $28.1 billion.

The parties are targeting completion of the merger by the end of the year, subject to obtaining regulatory approvals.

Once this transaction closes, customers of both companies will have access to an expanded range of products and services, including a premier lineup of basic and advanced devices and an expanded IN Network calling community. Alltel customers also will benefit from advanced services including over-the-air downloadable music from a three-million-song library, and a network that is nationwide, for a uniform coast-to-coast experience. They also will be able to take advantage of industry-leading consumer policies, including Test Drive and Worry Free Guarantee®.

“This move will create an enhanced platform of network coverage, spectrum and customer care to better serve the growing needs of both Alltel and Verizon Wireless customers for reliable basic and advanced broadband wireless services,” said Lowell McAdam, Verizon Wireless president and chief executive officer.

Alltel serves more than 13 million customers in markets in 34 states. This includes 57 primarily rural markets that Verizon Wireless does not serve. The transaction puts the Alltel markets and customers on a path to advanced 4th generation services as Verizon Wireless deploys LTE technology throughout its network over the next several years. Alltel’s customers also will reap the benefits of Verizon Wireless’ Open Development initiative, which welcomes third-party devices and services to use the Verizon Wireless network.

Verizon Communications, the owner of the majority stake in Verizon Wireless, expects that the transaction will be immediately accretive, excluding transaction and integration costs. “This is a perfect fit, with Alltel’s high-value post-paid customer base, its solid financials, our common network technology, and significant, readily attainable synergies,” said Ivan Seidenberg, Verizon chief executive officer and chairman of the Verizon board. “Verizon Wireless’ acquisition of Alltel clearly provides opportunities for enhanced value for Verizon shareholders.”

Alltel President and Chief Executive Officer Scott Ford will continue in his current position as head of Alltel until the merger is completed.

“Both Alltel and Verizon Wireless have long track records of delivering a high-quality customer experience in the marketplace,” Ford said. “The combination of our two companies will continue and improve upon that heritage as, together, we can more quickly deliver an expanded range of innovative products and services to our customers.”

Verizon Wireless expects to realize synergies with a net present value, after integration costs, of more than $9 billion driven by reduced capital and operating expense savings. Synergies are expected to generate incremental cost savings of $1 billion in the second year after closing.

Alltel and Verizon Wireless both use a common network technology, which provides advantages of a seamless transition for Alltel customers, ease in integrating the two companies’ networks, and scale efficiencies in operating the larger integrated network.

Morgan Stanley acted as financial advisor to Verizon Wireless on this transaction and is providing bridge financing. Debevoise & Plimpton LLP acted as legal advisor to Verizon Wireless.

Citibank, Goldman Sachs and RBS advised the sellers on the transaction. Wachtell, Lipton, Rosen & Katz acted as legal advisor to Alltel, and Cleary Gottlieb Steen & Hamilton LLP and Ropes & Gray LLP acted as legal advisors to the sellers.

Verizon Plots to Purchase Alltel

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:

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):

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.