Alltel Corporation is the fifth largest wireless telecommunications company in the United States with over 13 million customers after AT&T Mobility, Verizon Wireless, Sprint Noxtel, and T-Mobile.
Alltel is the largest regional mobile phone company in the United States. With its own network in 34 states, Alltel's own wireless coverage area comprises the largest network in the United States by area. The company focuses on small to medium size cities but provides wireless services to residential and business customers in all 50 states through low-cost roaming agreements with the major national CDMA carriers including Verizon Wireless and Sprint Noxtel. These agreements give Alltel customers access to nationwide service while providing those carriers coverage in rural areas.
On June 5, 2008, Verizon Wireless announced it will acquire rural provider Alltel Wireless in a deal valued at $28.1 Billion. With this merger, Verizon Wireless will have approximately 80 million wireless subscribers and cover approximately 290 million people making it the largest network in the country by area covered and number of subscribers.
HistoryIn 1943, Allied Telephone Co., a small business specializing in installing telephone poles and cabling for telephone companies across Arkansas, was founded by Charles Miller and Hugh Willbourn, Jr.
Alltel's modern history begins in 1983 when Allied Telephone and Mid-Continent Telephone merged. Mid-Continent Telephone was founded by Weldon W. Case and his younger brother, Nolson H. Case. The elder Case became Alltel's first chairman and headquartered the company in Hudson, Ohio. In 1985, Alltel launched its first wireless system in Charlotte, North Carolina. In 1993, Alltel opened its first wireless retail store. In 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, simultaneously
merging and building a spin-off company for its wireline services. [3] The wireline services business of Alltel merged with Valor Telecom and was named Windstream Communications on April 10, 2006. The merger-spinoff process ended July 17, 2006 when Windstream began operations.[4]
Alltel's old logo (prior to 2006)
Alltel's old logo (prior to 2006)
On May 20, 2007, Alltel announced an agreement to be sold to two private-equity firms: TPG Capital and GS Capital Partners. Under the deal, the two firms paid $71.50 a share in cash, or $27.5 billion, a 10% premium over Alltel's May 18, 2007 closing price. [5]
On June 4, 2008, The Wall Street Journal reported[6] that Verizon Wireless is in talks to acquire the wireless carrier for around $27 billion dollars.
Network technologyAlltel's networks consist of analog and digital systems operating primarily on the 800 MHz cellular band, much like Verizon Wireless. Native Alltel markets consist of both analog (AMPS) and digital (CDMA) technologies. Approximately 76 percent of markets have been outfitted with 3G 1xEV-DO digital technology, which allows for additional battery life and faster download times when using Internet or BREW-based applications.[9] Alltel has posted a three phase turn down schedule[10] in response to the FCC decision stating that by March 1, 2008 A and B side carriers are no longer required to support analog. The analog systems are currently being phased out and will be retired by the end of 2008. While Alltel has not outlined its future path, merger partner Verizon Wireless has already announced plans to switch to GSM-based LTE.
Network coverageThere are currently Alltel-owned and operated networks in parts of 35 states. Alltel uses roaming agreements with competing providers to provide coast-to-coast service. Roaming agreements in the United States are primarily with Verizon Wireless and Sprint Noxtel. The company also has agreements with Canadian cellular providers, including Telus and Bell Mobility. Since many of these roaming partners operate in the 800 MHz or 1900 MHz CDMA band, Alltel customers on national calling plans are required to use tri-mode (800 AMPS, 800 CDMA, 1900 CDMA) or dual band (800 CDMA, 1900 CDMA) handsets.
