Verizon Wireless is close to acquiring Alltel Wireless for $27 billion making Verizon the largest wireless carrier surpassing AT&T in the standings, according to sources.
The deal doesn't come too surprising as Alltel has been swimming in $23 billion of debt that sources believe Verizon could refinance. The debt comes from a deal seven months ago when Alltel was taken private by TPG Capital and a branch of Goldman Sachs.
What the Merger Could Mean to You
Part of me is saddened by this announcement because, like many of the citizens in the Midwest, I grew up with a young Alltel as my only available wireless carrier in rural Kansas. Myself and Alltel Wireless have grown older and wiser with each other.
On the other hand, the takeover by Verizon Wireless could create an even fiercer battles between itself and AT&T Wireless for top dog. Part of me wants to hope AT&T would be forced to ramp up the release of the 3G iPhone and subsidize the costs to gain more users.
More competition is always good, even if it's at the cost of a favorite and homely wireless provider. Who knows, Verizon may even keep Alltel in tact and just operate behind the scenes.
