Monday, January 12, 2009

Verizon Wireless: the Nation's Largest Wireless Network

Here's a wireless network update. Verizon Wireless proudly announced that it has taken the title of the largest US wireless network by completing its merge with Alltel. I have blogged about this topic a few times and it seems that the Verizon Wireless-Alltel merger is about to be completed.

Prior to the completion of the Verizon Wireless-Alltel merger, AT&T held the title as the largest US wireless network. Verizon wireless was considered as the second largest US wireless network until it completed its union with Alltel. Now, Verizon Wireless can proudly claim that it now owns the top spot as the largest US wireless network.

The completion of the Verizon Wireless-Alltel merger means that Verizon has become the largest wireless network with a coverage of 290 million people and serves more than 83.7 million total customers. On the other hand, AT&T with 74.9 million wireless customers, becomes the second largest US wireless network.

The wireless network scene first heard about the Verizon Wireless-Alltel merger for $5.9 billion in equity on June, 2008. In order to complete the Verizon Wireless-Alltel merger, the current largest US wireless network took over about $22.2 billion in Alltel's debt. These requirements were ordered by both the US Department of Justice (DOJ) and the Federal Communications Commission (FCC).

This means that Alltel customers in areas served by both Alltel and Verizon will not be included in the Verizon Wireless-Alltel merger. The Alltel customers affected by the Verizon Wireless-Alltel merger will be informed that their service will change.

Some experts feel that it will take some time before the Verizon Wireless-Alltel merge will become fully integrated although both companies use CDMA cellular technology in their wireless networks. It make take time to merge the network operations and billing systems of the largest US wireless network.

Now, how will AT&T respond to the Verizon Wireless-Alltel merger. I think that they will find ways to regain their former position as the the largest US network. Competition among US carriers is intense so there is no doubt that the rivals of the current largest US network will try to take over the divested customers.

That's is for this post on the Verizon Wireless-Alltel merger forming the largest US wireless network. Tune in to this blog for more news and updates on major US wireless carriers.

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