Monday, October 27, 2008

Regional Wireless Network Opposses Verion-Alltel Union

The news about Verizon Wireless' plan to acquire Alltel first surfaced during the first week of June. It was a significant development in the wireless network industry as it would make Verizon the biggest American wireless carrier. However, many expected that the union will not go smoothly as many obstacles have to be cleared before Alltel completely merges with Verizon Wireless. Another obstacle to the Alltel-Verizon merge have surfaced as some rural or regional carriers have declared their strong opposition.

In an effort to stop Verizon from Acquiring Alltel, some rural wireless network operators have sent a letter to FCC. The letter addressed to Federal Communications Commission Chairman Kevin Martin requested that the commission deny the approval of Verizon Wireless's acquisition of Alltel.

Here's a list of the wireless network operators and wireless associations who signed the letter:
  • Leap Wireless
  • SouthernLINC
  • LCW Wireless
  • Revol Wireless
  • Mobi PCS
  • NTELOS Inc.
  • National Telecommunications Cooperative Association
  • Rural Telecommunications Group
  • Organization for the Promotion and Advancement of Small Telecommunications Companies

The groups and carriers opposing to Verizon Wireless-Alltel union are concerned about the issues that might go unresolved if the FCC allowed the acquisition. The groups and carriers want the FCC to rule on the unresolved issues on roaming, spectrum concentration and handset exclusivity before they vote to allow Verizon Wireless to acquire Alltel. The Federal Communications Commission is scheduled to vote on this issue ion Nov. 4.

These members of the groups that oppose the merge believe that it would be against the interests of the public. They also feel that allowing Verizon to acquire Alltel without properly addressing the unresolved issues on roaming, spectrum concentration and handset exclusivity is anti-competitive and anti-consumer.

If the FCC voted to approve the merger, then Verizon Wireless will surpass AT&T as the biggest wireless network operator in the US. However, the FCC will need to address the concerns expressed by the regional carriers and wireless consumer groups before the Verizon-Alltel union becomes a reality.

I thinks its good that these groups have publicly expressed their stand on the issue. If the FCC do not heed their concerns, then it might be possible that a lot of problems will surface from the union between two major wireless carriers. Tune in to this blog for more news and updates on the the regional and national US carriers.

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