Yes folks, Verizon’s absorption of US wireless carrier Alltel has just been given the OK from the Department of Justice, and so Verizon execs can heave a sigh of relief for now. They are on their way to becoming the #1 (in terms of subscribers) wireless carrier in the US, and one of the largest in the world. They’re currently #2, by the way, behind AT&T.
But (and isn’t there always a ‘but’ in there somewhere) before Verizon can grab up Alltel, the DOJ has asked that Verizon divest about 100 markets in 22 states in order to maintain market competition (which no doubt made a few Verizon VIPs foam at the mouth a bit). Given the size of the deal and what’s at stake, Verizon is expected to comply with the DoJ’s merger requirements without resistance.
Now it’s on to FCC approval, which isn’t expected to be a huge hurdle, according to a few reports. The FCC released an announcement, through Chairman Kevin Martin, that the commission would make their feelings known on the Verizon-Alltel deal before the end of the year.
This merger will probably go through (assuming the FCC doesn’t slap it down, which is doubtful) in early 2009, so AT&T needs to start looking over their shoulders, perhaps. We’ll keep you posted as the information comes in, but this one could be huge for the wireless industry.
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