Corporate & Securities Law

Verizon Wireless-Alltel Deal Moves Forward After Divestitures

By David Fischer

The Washington Post reports that:

The proposed merger between Verizon Wireless and rural carrier Alltel to create the nation’s largest wireless company moved a step closer to reality yesterday after the Justice Department signed off on the deal.

…

Public interest groups have criticized the plan to join Verizon, the nation’s second-largest carrier, and Alltel, the fifth-largest carrier, saying the unified company would stifle competition and consumers would be have fewer choices among cellphone network operators.  A combined Verizon-Alltel would create the largest wireless operator with 83.8 million subscribers. AT&T would be second with 74.9 million subscribers, followed by Sprint Nextel with 51 million and T-Mobile with 30.8 million.

…

To assuage those fears, the Justice Department is requiring Verizon to sell spectrum in 15 more areas than it had previously demanded. Verizon earlier had agreed to divest spectrum in 85 markets.

“The divestitures required are necessary to protect wireless customers and are among the most extensive required by the Department in a wireless case,” said Thomas O. Barnett, head of Justice’s antitrust division.

The Department of Justice’s press release can be found here and the [proposed] Modified Final Judgement can be found here (.pdf).

Full post as published by Antitrust Review on October 31, 2008 (boomark / email).