Alltel and AT&T: A Complete Guide to the Acquisition

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Alltel's acquisition by AT&T was a significant event in the telecommunications industry. It was completed in 2009 for approximately $6.2 billion.

The deal was finalized after a series of mergers and acquisitions that began in 2004. Alltel's assets were eventually sold to AT&T, marking the end of the company's existence as an independent entity.

AT&T's acquisition of Alltel expanded its wireless network to cover more customers in rural areas. This was a strategic move to improve the company's market share and competitiveness.

AT&T and Alltel

AT&T acquired Alltel in late 2013, and as part of the deal, it agreed to transition Alltel customers to its own GSM-based network.

AT&T is replacing all Alltel stores and services across Georgia with its own brand, starting from December 10. Over 100,000 former Alltel customers in Georgia will begin using new devices that work on AT&T's network early next year.

The acquisition was approved by the FCC, but with conditions. AT&T had to commit to launching HSPA+ and LTE service across the new spectrum assets within 15 months and 18 months, respectively, of the transaction closing date.

FCC Approves AT&T Acquisition

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The FCC approved AT&T's acquisition of Alltel's spectrum and assets, but with some conditions.

AT&T had to commit to launching HSPA+ and LTE service across the new spectrum assets within 15 months and 18 months, respectively, of the transaction closing date.

The FCC also required AT&T to offer CDMA voice and data roaming services over the Alltel 3G EV-DO network until at least June 15, 2015.

AT&T will have to file quarterly progress reports covering these commitments for the next three years.

To gain the FCC's approval, AT&T agreed to offer Alltel's customers a handset comparable to their existing handset at no cost and without requiring a contract extension.

In order to win the FCC's approval, AT&T had to commit to launching HSPA+ and LTE service across the new spectrum assets within 15 months and 18 months, respectively, of the transaction closing date.

This acquisition gives AT&T wireless spectrum licenses in the 700, 850, and 1900MHz bands, network assets, retail stores, and 620,000 subscribers in markets throughout the mid-west.

FCC Halts At&T's Buy

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The FCC has put a temporary hold on AT&T's proposed purchase of Alltel assets. This deal would give AT&T wireless spectrum licenses in the 700, 850, and 1900MHz bands.

AT&T agreed to pay Atlantic Tele-Network $780 million for the spectrum licenses, assets, and customers. The FCC says it can't complete its review without knowing how AT&T will transition Alltel customers to its own service.

The FCC's review of the deal was on Day 175 out of 180, which is why they stopped the clock. This means AT&T has some time to work out the details with the FCC.

Verizon Wireless was forced to divest some of Alltel's assets when it purchased the company in 2008.

If this caught your attention, see: AT&T

Alltel Devices

Alltel offered a range of devices, including the Alcatel One Touch Ultra, which had a 4.3-inch display and a 5-megapixel camera.

The Alcatel One Touch Ultra was available for $19.99 with a new two-year agreement or $199.99 with one of Alltel's No Contract plans. It ran Android 2.3 Gingerbread and had a single core 1.4GHz processor.

Older Alltel devices, like the LG AX-490, featured FasTap text keypads that sped up messaging and other text entry. The AX-490 also had Bluetooth, a VGA camera, and speaker-independent voice control.

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AT&T Replacing Brand with Own in Georgia

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AT&T is replacing the Alltel brand with its own in Georgia. This change will take place on December 10, where all Alltel stores and services across the state will be rebranded under the AT&T name.

Over 100,000 former Alltel wireless customers in Georgia will start using new devices that work on AT&T's network early next year.

AT&T completed its acquisition of Alltel in late 2013 and has been transitioning Alltel customers to its own GSM-based network. This process is part of the company's effort to consolidate its network infrastructure.

AT&T agreed to launch LTE to Alltel customers within 15 months of completing the sale, as a condition for gaining FCC approval. This deadline was part of the company's commitment to upgrade its network capabilities.

AT&T is encouraging any remaining Alltel customers to visit the new AT&T stores and switch to AT&T's handsets and services. This will help customers take advantage of the latest technology and features available on the AT&T network.

Alcatel One Touch

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The Alcatel One Touch series is a line of Android devices that offers impressive features at affordable prices. The Alcatel One Touch Ultra 960C, for example, boasts a 4.3-inch WVGA display.

This device is a variant of the Alcatel Authority, which is sold by Cricket Wireless. It has a 5-megapixel camera with 720p video capture, and is powered by a single core 1.4GHz processor.

The One Touch Ultra also features the Swype virtual keyboard and Bluetooth 3.0 for connectivity. You can get this device for $19.99 with a new two-year agreement, or $199.99 with one of Alltel's No Contract plans.

One notable aspect of the Alcatel One Touch series is its focus on user-friendly features. The One Touch Ultra, for instance, includes a large display that's perfect for browsing and multimedia use.

The Alcatel One Touch Ultra runs on Android 2.3 Gingerbread, which is a reliable and efficient operating system. This device is a great option for those looking for an affordable Android experience.

Verizon and Alltel

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Verizon acquired Alltel in 2009 for $28.1 billion, expanding its wireless network to 34 states.

Alltel's network was absorbed into Verizon's existing infrastructure, creating one of the largest wireless networks in the US.

The acquisition marked a significant milestone in Verizon's growth strategy, solidifying its position as a leading wireless carrier.

Verizon Stops Activating Old Phones

Verizon Wireless has stopped activating old Alltel phones on its network. This change affects customers who are trying to activate handsets that were never activated on the Alltel network.

Customers who are told they cannot activate an older Alltel device can take advantage of current promotions, including free devices.

Verizon Wireless is encouraging customers to move to current devices for the best experience on their network.

Verizon Completes Buyout

Verizon Wireless has completed its $5.9 billion purchase of Alltel Corp.

The buyout makes Verizon the nation's largest mobile phone company, with 83.7 million total customers after the divestiture.

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Verizon took on $22.2 billion in Alltel debt as part of the deal.

Alltel employees below the executive level will continue in their present jobs as Verizon assesses staffing needs.

Regulators forced Verizon to sell 105 overlapping markets in 24 states as a condition of the purchase.

Verizon will divest in four markets it held prior to the buyout, and will sell Unicel operations in southern Minnesota and western Kansas.

Alltel customers will not need to take any action at present, but will soon receive a letter explaining the transition.

Most Alltel customers will be able to keep their same handsets as Verizon and Alltel are on the same system.

Verizon will begin to place its own brand name starting in the second quarter, a process that will continue through the third quarter.

Alltel History and Coverage

Alltel was founded in 1943 by Charles Miller and Hugh Willbourn, Jr. as the Allied Telephone Company.

The company's modern history began in 1983 when Allied Telephone and Mid-Continent Telephone merged. Mid-Continent Telephone was originally a theatre company started in 1931 by Eddie Ruben and Joe L. Floyd in Minnesota.

At its peak, Alltel operated a network in 34 states, with a wireless coverage footprint comprising the largest network in the United States by area.

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History

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Alltel's history began in 1943 with the founding of the Allied Telephone Company by Charles Miller and Hugh Willbourn, Jr.

The company started small, specializing in installing telephone poles and cabling for telephone companies across Arkansas, but it paved the way for Alltel's future growth.

In 1983, Allied Telephone merged with Mid-Continent Telephone, a theatre company that started in 1931 in Minnesota, to form the modern Alltel.

Alltel launched its first wireless system in Charlotte, North Carolina in 1985 and opened its first wireless retail store in 1993.

By 1997, the company's wireless and wireline businesses were combined into a single organization.

On December 9, 2005, Alltel announced that it would become a wireless-only company, merging and spinning off its wireline services into Windstream Communications on April 10, 2006.

The merger-spinoff process ended when Windstream began operations on July 17, 2006.

Alltel operated a network in 34 states at its peak, with a wireless coverage footprint that was the largest in the United States by area.

Expand your knowledge: United States Wireless Carriers

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The company focused on providing wireless services to small to medium size cities and rural areas through roaming agreements with Verizon and Sprint.

These agreements gave Alltel customers access to nationwide service, while providing those carriers coverage in rural areas.

On June 5, 2008, Verizon Wireless announced it would acquire the majority of Alltel Wireless in a deal valued at $28.1 billion.

The merger was approved by the Federal Communications Commission on the condition that Verizon divest 105 Alltel markets.

On May 8, 2009, AT&T announced it would acquire 79 of the divested wireless properties, including licenses, network assets, and 1.5 million current subscribers.

Atlantic Tele-Network acquired the remaining 26 divested Alltel markets, including licenses, network assets and 800,000 subscribers, on April 26, 2010.

These remaining markets continued to be operated by Allied Wireless, a subsidiary of ATN, under the Alltel name until AT&T acquired them on September 20, 2013.

The transition of Alltel customers to the AT&T network was completed in February 2015.

Wireless Network Coverage

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Alltel's wireless network coverage was quite extensive, spanning parts of 6 states. The company utilized roaming agreements with Verizon and Sprint to provide coast-to-coast service.

These roaming agreements allowed Alltel customers to access coverage in areas where Alltel didn't have its own network. This was a significant advantage for customers who traveled frequently.

By the time Alltel merged with Verizon, the company had already migrated all its customers to the AT&T network. This move ensured seamless coverage for customers across the country.

Alltel's network was built on a mix of analog and digital systems, primarily operating on the 850MHz cellular band. This technology allowed for faster download times and longer battery life.

The company's digital technology, 3G1xEV-DO, was implemented in virtually all markets. This upgrade enabled customers to enjoy faster data speeds and more efficient use of their devices.

Alltel had a three-phase plan to retire its analog systems, with the goal of discontinuing analog support by March 1, 2008. The company successfully completed this transition by the end of 2008.

Here's a quick rundown of Alltel's network technology:

  • 850MHz cellular band
  • 3G1xEV-DO digital technology
  • 3GPP2 Band Class 0
  • Analog (AMPS) and digital (CDMA) technologies

Alltel Advertising

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Alltel used lookalikes of rival cell phone companies' primary advertising characters in their commercials. This was after competing networks complained about the initial campaign.

The commercials featured a notice on television and the website stating that the characters were look-alikes, not associated with Alltel. The notice read: "Our lawyers would like to inform you some of the characters you see here are not associated with Alltel. They are look-alikes. The characters, not our lawyers."

Alltel's spokesman, Chad Brokaw, was played by comedian Chad Brokaw. He appeared in commercials alongside lookalikes of rival carriers' representatives.

The campaign included a series of commercials involving Chad, bragging about Alltel's service and using the theme music "Come and Get Your Love". The parodied competitors, called "Sales Guys", were played by professional actors.

The Sales Guys were perpetually frustrated by their failures and less popularity. They even went so far as to harass and threaten Chad, albeit with less than effective results.

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The Sales Guys were played by Matthew Brent (Verizon), Scott Halberstadt (Cingular/AT&T), Ian Gould (T-Mobile), and Michael Busch (Sprint), who was later replaced by Adam Herschman. Each representative wore a shirt with the color of the company they represented, as well as name tags.

As of 2008, the campaign added a snobbish wizard into the ads. The Christmas 2007/2008 ads used stop-motion animation, parodying the Rankin-Bass Christmas specials.

Alltel also created a MySpace page and a web site called The Man Cave. The campaign included a series of commercials featuring employees of other carriers' mall stores trying to convince Chad to end My Circle with $8.00.

In 2010, markets sold to Verizon Wireless aired a special commercial with both Chad and Paul Marcarelli as the real "Verizon Guy".

Alltel Special Report

Alltel was a major player in the US wireless market, with a presence in 34 states and over 10 million subscribers.

The company's early success was largely due to its innovative approach to wireless service, which included the introduction of the first prepaid wireless plan in the US.

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Alltel's prepaid plan was a game-changer, offering customers a flexible and affordable alternative to traditional postpaid plans.

In 2009, Alltel was acquired by Verizon Wireless for $28.1 billion, marking a significant shift in the company's trajectory.

Verizon's acquisition of Alltel brought significant resources and expertise to the table, allowing the company to expand its network and improve its services.

Katrina Sanford

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Katrina Sanford is a seasoned writer with a knack for crafting compelling content on a wide range of topics. Her expertise spans the realm of important issues, where she delves into thought-provoking subjects that resonate with readers. Her ability to distill complex concepts into engaging narratives has earned her a reputation as a versatile and reliable writer.

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