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January 13, 2009 3:11 PM PST

On Call: How the Alltel/Verizon merger affects you

by Kent German

Nothing is constant in the cell phone world and carriers are no exception. In the past five years, we've seen Sprint scoop up Nextel, AT&T Wireless merge into Cingular, and Cingular become the new AT&T. And I won't even mention the small regional operators that disappeared into the folds of a national carrier.

The latest carrier casualty is Alltel, which , as of last Friday, merged with Verizon Wireless. Like any corporate marriage, there are plenty of details to sort out so this one won't be completed for some time. But if you're a customer of either carrier, I'm sure you have questions on how the merger will affect you. So, to help you understand how the merger will proceed, I've created this handy FAQ that expands on Verizon's own FAQ on its Web site. If you have any additional queries, please send them on and I'll do my best to answer them.

Q: When will the merger be completed?

A: It will be a few months until Verizon and Alltel are one company. For now, Verizon is the legal owner of Alltel. Once the deal is done, Verizon will outpace AT&T as the largest U.S. wireless carrier with an expected 78 million customers.

Q: What will the company be called?

A: Verizon is the buyer here so the Alltel name and branding will disappear starting in the second quarter of this year. Most current Alltel customers will become customers of Verizon automatically.

Q: How much is the deal worth?

A: Verizon is paying $5.9 billion for Alltel and assuming $22.2 billion in Alltel debt for a total acquisition worth $28.1 billion.

Q: Where will the company locate its headquarters?

A: Verizon will retain its headquarters in Basking Ridge, N.J. Alltel's offices in Little Rock, Ark., will close but Verizon has promised it will open a call center there. Unfortunately, that will mean more than a few Alltel employees in Arkansas will lose their job.

Q: Will the companies have a difficult time combining their networks?

A: For the most part, they will not have much trouble. Both carriers use CDMA and operate EV-DO 3G networks. As such, their technologies are compatible and each carrier's phones can operate on the other carrier's network.

On a more specific level, however, there will be hiccups with the combination. To gain federal approval for the merger, Verizon agreed to sell assets in 105 markets in 24 states where it overlapped with Alltel. The feds ordered this to preserve competition in those markets. While that may sound great on the surface, it will have a profound impact on customers in those areas.

Q: What kind of impact?

Alltel customers in an overlapping market will not be part of the merger and will not migrate to Verizon. The assets will be placed in a trust until they are sold to a buyer. If that applies to you, your cell service won't stop working, but you will get a new service provider at some point. Verizon has listed the assets that it will sell on its Web site.

Q: How will I know if I'll migrate to Verizon?

A: If your service will be integrated you'll receiver a letter in the coming weeks. If you have questions about your status, contact Verizon customer service.

Q: What will happen during migration process?

A: The two carriers will have to integrate networks and billing services. Until that happens, you'll continue to use Alltel's network. When it is completed, the actual switchover process should be pretty seamless (at least we hope). You won't notice a service interruption on your end.

Q: I'm an Alltel customer. Will my reception and customer service level change due to the merger?

A: As with any merger you will see a change. It could be for the better, or it could be the worse, but it's difficult to say right now. Hopefully, it will be the former.

Q: Will I have to give up my Alltel phone?

No, you should be able to continue to use it with Verizon without any issues.

Q: Will Verizon discontinue any Alltel-specific services like My Circle?

As of now, Alltel customers can continue to use My Circle as long as they are on an Alltel plan. Verizon customers may get to use My Circle when the merger is complete, but that's still under evaluation. On the other hand, Alltel customers will be able to use free mobile-to-mobile minutes when calling Verizon customers in the near future.

Q: What will I happen to my Alltel calling plan? Will I be forced to sign a new Verizon contract?

We don't know specifics on this just yet, and we won't know them until the integration is close to being over. Yet, it's my guess that you'll be able to keep your Alltel plan, at least in the short term. When Cingular bought the old AT&T Wireless, AT&T customers were able to keep their plans for the first couple of years. Eventually, most of them moved over, but only after their original AT&T plan expired and they agreed to sign a new Cingular plan to get a new phone with a rebate.

Q: What will happen to the Alltel stores? Will they close?

A: According to Verizon, Alltel stores will remain open during the integration process. After it's completed, though, it's likely that some Alltel stores will close. Also, until the merger is over, Alltel customers can't get service at Verizon stores and vice versa.

Q: Will I no longer have to suffer through those irritating "Chad" Alltel commercials?

A: I certainly hope so. If anything good comes out of this merger, I'd say that would be it.

Kent German is a senior editor for cell phone reviews at CNET. When he's not testing the newest handsets on the market, he's blogging about cell phone news for Crave. In his On Call column, he answers reader questions and gives his take on the rapidly changing mobile industry. E-mail Kent.
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Add a Comment (Log in or register) Showing 1 of 3 pages (63 Comments)
by tehrani625 January 13, 2009 7:38 PM PST
w00t no more chad.
Reply to this comment
by ggore January 14, 2009 4:25 AM PST
The concept of "divesting overlapping markets" is a complete sham. I live in a 3-county RSA "Dead Zone" in Oklahoma, where T-Mobile, Sprint, Verizon, US Cellular AT&T, and Alltel are not allowed to sell or provide service. Every state has one of these markets, laid out so that no one company can have a potential "monopoly" in a state. The only carriers allowed to operate in these areas are small regional providers, which in my case was Dobson Communications. Dobson held the license for this area yet never built any towers to cover it. When AT&T bought Dobson a few years ago, they were required to "divest this RSA for competitive reasons". A small company in Montana bought the license and has yet to build anything, so here we sit, still with no service.
Reply to this comment
by jskrenes January 14, 2009 6:27 AM PST
I live in SD and work at a Verizon retail store. SD is one of the markets where Verizon and Alltel overlap and VZW has to divest the Alltel towers/customers. But Nebraska's Alltel network is by and large going to be absorbed by VZW. Alltel customers in NE can't come across the border and do business with the Alltel store, but they can't yet come to our store. It's a mess. I hope they clean it up sooner than later.
Reply to this comment
by rmaybach January 14, 2009 7:51 AM PST
This might be an ignorant or simply unanswerable question, but when the merger finalizes, will devices previously available on Alltel be available to Verizon customers? I suppose that depends on many variables, but I know my wife would kill for a red Blackberry...

Thanks
Rob
Reply to this comment
by bunnybo0bo0 January 16, 2009 11:07 PM PST
Rob,
To answer your question... yes and no!! There are alot of things that will come into play with this... No one knows what phones will continue to be sold (as far as the Alltel phones) All that we know is that the (almost all) Alltel phones will work on the Verizon network. With that being said...do yourself a favor and do NOT run out as soon as you read this and buy an Alltel Red Blackberry Curve!! LOL wait and see if Verizon continues to offer it so that you are able to get it at the "sale price" if not... there is always Ebay!!
by bluelight421 January 14, 2009 9:43 AM PST
This is a good move for Verizon, however... once again its at the expense of the customer. Each time these mergers happen, the customer always gets a raw deal. Leave it to the FCC and SEC to continue to allow these mergers at the expense of the customer. I understand that the idea of two wireless companies merging is not a new idea. (Sprint/Nextel, AT&T/Cingular) This is an obvious move that was just waiting to happen and it will greatly benefit Verizon, but i can't help feeling sorry for Alltel customers. They unfortunately will have no choice but to live under the tyranny of Verizon Wireless and its closed network, otherwise pay an ETF and jump ship to a new carrier.

But at least chads gone! ; )
Reply to this comment
by lgreiner66 July 29, 2009 10:42 AM PDT
I haven't had a good experience at all! I was a former Alltel customer and never had any problems with my cellular service. I could always count on my bill being the same each month, $142.00. I got my first Verizon bill and it was $586.53! It seems that most of my contacts are in the areas that Verizon purchased from Alltel that are now being sold so they are not in the Verizon network. This means that before I got my bill I thought that I was talking mobile to mobile with contacts that were now out of network. Of course there is no easy way to now know if you are mobile to mobile or out of network since you have to find out if Verizon is keeping the Alltel site where that contacts contract originated or if they are selling it. If it is an Alltel that they have chosen to keep then you are mobile to mobile. If they are on the list to sell, then they are out of network! Beware of who you are talking to, it can get expensive. I have contacted the BBB and I have sent an email to the President & CEO of Verizon may I will hear from someone soon. I didn't choose Verizon ~ they chose me! I didn't sign a Verizon contract, I signed with Alltel.
by ruby_red24 August 13, 2009 7:26 AM PDT
IT MAY BE GOOD FOR VERIZON BUT WHAT ABOUT ALL OF ALLTELS CUSTOMERS!!!!
by jeffaller January 14, 2009 10:23 AM PST
I know nothing about the merger besides the fact that I live in ND where my options are simply Alltel or Verizon, and now, just Verizon. How is it that in a city of 100,000+ people along with 2 other cities greater than 50K we have been demoted to a monopoly of one service provider? I'm sure through all of this article it was explained to me but I don't care, I just want an option or two....and an iPhone. Maybe I just want AT&T around and i'm bitter about it. But..once again. at least chad's gone.
Reply to this comment
by jskrenes January 14, 2009 5:58 PM PST
No, you are not left with one carrier. Every state is mandated by law to have at least two primary wireless carriers. The towers/customers that Verizon acquires in ND will have to be put in a trust and sold to someone else. Probably US Cellular, maybe Sprint or ATT.
by chaz54 January 14, 2009 11:23 AM PST
Kent German is a retard back in 1998 i had a cell phone with a small cell company called Alltel till in about 2000 when the company was sold to Verizon. fast foward to Alltel trying to make a comeback and Verizon doing it again. You would think he would have said something about history repeating itself good job researching your story Kent.
Reply to this comment
by chaz54 January 14, 2009 11:29 AM PST
back in 2000 when Verizon first took over Alltel i was forced to dump my analog cell for a digital one a motorolla startac at full cost and upgrade my service contract or pay a fee for getting rid of my contract. lets see how Verizon screws the new batch of Alltel customers
Reply to this comment
by Mikem704 January 14, 2009 12:39 PM PST
I actually like Chad, "My Circle" has been a great benefit to us. We live in Alltel's very first cell market. This is where it all started. Almost everyone I know on Alltel has been happy with their service and coverage. I have heard all the horror stories about the others. Verizon is very big here too and their plans are generally more expensive. So Alltel will go the way of Piedmont Airlines another company that served us well before US Air swollowed them. These megers put people out of work. Do we really need that right now?
Reply to this comment
by tt_fan_1 January 14, 2009 3:34 PM PST
I too like the Chad commercials & My Circle is very nice but won't be sad to see Alltel go - no more dropped calls for no reason, voice mails that don't show up until DAYS later, text messages that end up being sent to people you don't even know, & crappy customer service reps who don't understand that the call I was charged roaming for CAME FROM THEM! I was perfectly happy with my Midwest Wireless - no issues what-so-ever but when Alltel took them over our cell reception dropped drastically! So here's hoping I can actually use my phone to TALK to people once Verizon takes over...though I must say - I won't hold my breath...
Reply to this comment
by rich3023 January 14, 2009 3:42 PM PST
I know many people that will leave when the merger is final because we have been told that Verizon will stop any and all Alltel service. What i am talking about is on the day the merger is final all Alltel customers will wake-up in the morning and have no service just a text message telling them to call customer service to get a new rate plan and phone at Verizon's price. And if you dont then all you have is a paperweight.
Reply to this comment
by srvctec January 16, 2009 8:27 PM PST
So who's telling you this? I can't imagine they'd want to alienate every single Alltel customer by just killing their service. Besides, the phones work on each network since the technology is the same. I don't think this is going to happen, but we will see.
by mrsrast09 February 2, 2009 1:55 PM PST
Im sure that there are people that will leave, but I am an Alltel employee and I have spoken to numerous customers that are fine with the merge. I think that everything will end up being fine for both alltel and verizon customers and employees. when the two networks are finally one there will be about 80 million customers, why would verizon just shut the alltel customers out. there is no reason for that. like i said I think they will accomodate everything and everyone as best they can.
by strongpimphand January 14, 2009 4:49 PM PST
Beautiful for me! It gives me the option to migrate back to Verizon if needed.

See, I love ATT. But, I also love to have choices in life. When I first came down to southern miss for college, Verizon did not have ANY service down here. Well, 4 years later and they STILL have no service down here (ATT, Alltel, and Cellular South have a 3G network in the meanwhile...)

In fact, I was able to get out my Verizon contract because of not being able to "successfully use my phone". It's hilarious when someone wants to send you a picture and you gotta text them back saying you can view it when you drive 90 miles to jackson or the coast...

So, now, I have the option to rejoin Verizon after this merger. Will I? Probably not....when I left, I got sucked into the wonderful world of rollover and sim cards...
Reply to this comment
by i_am_still_wade January 14, 2009 6:42 PM PST
BOO! Alltel was the last good cell phone company. They had it all: great prices, great cell service, non-crippled phones. Well, say goodbye to two of those. And for what? Just so they can have an ego boost over AT&T by saying "na na, we have more customers than you." Verizon Wireless, we never stop overcharging you.
Reply to this comment
by jlynn33 January 15, 2009 6:37 AM PST
Chad has been assimilated!
by bl14 January 16, 2009 6:12 AM PST
I absolutely agree with you. Their regional plans were teriffic and I love tjheir prepaid, which i use as a second phone for travel and rural areas( we do not have Alltel where i live and I use it as a back up). The Cingular takover of the "old" ATTY wireless was a disaster and this will be probably much worse. The anti trust era is gone and the re-monopolization of the telecom market(among others) is in full swing. R.I.P., Alltel.
by phiyaman January 16, 2009 6:50 PM PST
Last good company...Your definition of a good company is one that makes no money. That's why they have so much debt and got bought out by VZW. VZW charges when you go over your minutes...so stop going over. Sometimes charges are messed up but it gets fixed, but if you do something you are not supposed to do, you will be dinged for it. To drive in a car like a Mercedes you will pay Mercedes price...with service like VZW...you will pay the VZW price. Get over it...or Get At&t and get crappy service.
by carmen_maria January 20, 2009 5:40 AM PST
I agree. Alltel has the best service. I used to have Verizon and had to drop it because I didn't get service hardly anywhere. Alltel picks up anywhere I need it. I hope we won't be sucked into Verizon's expensive plans and crappy service
by pkennedy January 15, 2009 7:11 AM PST
here's the merger info-FAQ's from the Alltel site
http://www.alltel.com/wps/portal/AlltelPublic/!ut/p/c1/04_SB8K8xLLM9MSSzPy8xBz9CP0os3hnP2-DoCBDAwN_HxcnAyNLZ0PLIE9DIN9MPxykA0mFu3eokYFRgFOwWZi7i5GBgQFE3gAHcDTQ9_PIz03VL8jOTnN0VFQEAPhJpK4!/dl2/d1/L0lDU0lKSWdrbUEhIS9JRFJBQUlpQ2dBek15cXchL1lCSkoxTkExTkk1MC01RncvN19DTkswUlIxMDBPTERCMDI5QzE5UkkxMTBHNC9PX19fXzM!/?WCM_PORTLET=PC_7_CNK0RR100OLDB029C19RI110G4_WCM&WCM_GLOBAL_CONTEXT=/wps/wcm/connect/Personal/home/p/customerservice/annoucements/announcements_merger.html
Reply to this comment
by pkennedy January 15, 2009 7:19 AM PST
in my previous posting wouldn't let the link be active.. just go to http://www.alltel.com and at top right is the merger info page link
by bunnybo0bo0 January 16, 2009 10:57 PM PST
all of you guys need to get a grip!! Yes this merger upsets ALOTT of people... but unfortunately that's life!! There is still alot of information that we do not know... not as employees, not as consumers, not as reporters, ect. Yes Alltel had a good amount of debt... that does not make them a "bad" company... for those of you that do not know... Alltel was sittin pretty good until a few years ago when they were bought by private investors... they are the reason that Alltel is in debt... they transfered their debt to Alltel as a company... I'm not sure exactly how all of that works... but thats how it happened in a nut shell!!

Every company has its "dead spots"... every company has its pros and cons... every company has its good and bad customer service reps as well as sales reps. I personally can tell you some HORROR stories about T-mobile and AT&T myself and to be quite honest... I can almost guarantee that what happened to me with these two companies is much worse than most of your stories about them... I'm talking lawsuit material!! And lets not forget about how Sprint likes to "slam" peoples accounts (which is illegal btw). I am not saying that Verizon and Alltel are the best carriers out there but I personally cant say a whole lot bad about either of the two... As far as I am concerned it is a great move!

Someone made the statement "To drive in a car like a Mercedes you will pay Mercedes price...with service like VZW...you will pay the VZW price." If anyone here has actually taken the time to review and compare Alltel and Verizon's plans... they REALLY are not that much different... Alltel offers that basic plans which are basically the same price as Verizon... and yes Alltel has promotional plans that include text messaging... but guess what folks?!?! SO DOES VERIZON!!! They have three different levels of plans!! Oh and lets not leave out the fact that if you do not have one of Alltels promo plans and you need unlimited text on your phones... its an extra $20 per phone... that adds up... and QUICK!! So with that being said... some of Verizons plans are actually slightly CHEAPER than Alltel!!! The main issue for most people really is the My Circle.... yes if you are someone like me who uses less than 1000 regular minutes and 3000+ My circle (or myfaves if you are t-mobile) minutes... than yes you may need a higher plan with verizon and therefore pay more... but again GUESS WHAT?!?! Verizon has never said that they are getting rid of MyCircle... in fact... plans are in the works to incorporate mycircle in some way shape or form...

--- rich3023
Whoever told you the nonsense that you posted on here is a complete and utter idiot!! And for you and your "many people" to jump the gun and say you are "leaving when the merger is complete" because of some frivolous information that you received from someone ignorant enough to speak on something that they know nothing about is amazing on its own!! Why in the WORLD would a company basically disown a good percentage of its customers.. just because... Not to mention... the two companies use the same technology... thus the same phones!!! There will be no "switch everything to Verizon or else." The only people that will have to switch their phones are the pack rates that have REALLY old phones... and the only reason for that is because they do not accept over the air programming FOR Verizon to "switch them over" Oh and Rich... a little secret ((the merger was "finalized" a week ago...)) so if the nonsense that you spoke of... "on the day the merger is final all Alltel customers will wake-up in the morning and have no service just a text message telling them to call customer service to get a new rate plan and phone at Verizon's price" were to occur like you were told... it would have happened on January 9th... a week prior to you posting that crap!!

As for Chad... haha he will still exist... well at least until someone buys the markets that Verizon could not keep. Remember... Alltel will still exist... therefore there will still be commercials... they have to keep up their marketing plan!!
Reply to this comment
by kimchrisholl February 3, 2009 12:00 PM PST
I have alltel and just reviewed the Verizon plan with a rep and it SUCKS compared to what I have now.... I have 4 phones 2500 minutes nights and weekends at 7 pm; unlimited everything on all phones and pay no where near what Verizon charges for a plan 400 minutes less than what I have now....I am very unhappy!!!! And on top of it if we don't like it oh well we can't cancel or we will be charged an early termination fee even though our company terminated on us????????
by bunnybo0bo0 February 15, 2009 6:57 AM PST
kimchrisholl... exactly what plan are you on because I do not recall Alltel ever offering a 2500 minute plan... I could be wrong but it sounds like you are on a 2200 or 2100 minute plan and have "thank you minutes" for being a long time customer... giving you a total of 2500 minutes??

If this is the case, I can?t imagine Verizon taking away thank you minutes that were given to you for your loyalty... especially considering that they do the same thing...

I am very curious to know more about your plan though... It is to be expected that some of the Alltel Reps are extremely bitter about the merger for the simple fact that we could potentially all be losing our jobs. The reps are not suppose to be negative toward the merger or the customer in any way and can actually lose their jobs for doing such!! It is getting bad though... I know one of my local stores has been informing their customers that their store is being closed (when in reality they have NO IDEA!!)
by chasero13 January 17, 2009 9:02 AM PST
Consider doing some research... Alltel was the only profitable cell phone company in 2007. Alltel did NOT need to be bought to stay alive. Hense why they said NO the first 7 times. EVERY carrier charges overage on mins. you go over, unless you are on an unlimited plan, which Alltel offers. Alltel is a GREAT company.

REPLYING TO: Last good company...Your definition of a good company is one that makes no money. That's why they have so much debt and got bought out by VZW. VZW charges when you go over your minutes...so stop going over. Sometimes charges are messed up but it gets fixed, but if you do something you are not supposed to do, you will be dinged for it. To drive in a car like a Mercedes you will pay Mercedes price...with service like VZW...you will pay the VZW price. Get over it...or Get At&t and get crappy service.
Reply to this comment
by moyeparthenon January 23, 2009 9:39 AM PST
i guess verizon will not offer the change of plan without interruption of the contract? if so, that's sucks because that's why one of the reasons i picked alltel in the first place. I was looking at verizon's plans and they are all 10 to 20 dollars higher than alltel's. at least i hope they keep the my circle
Reply to this comment
by bunnybo0bo0 February 15, 2009 6:46 AM PST
I believe you are referencing Alltel?s infamous "Anytime rate plan changes".... where it doesn?t matter what you do to your plan they do not extend your contract !!?? Well you will be happy to know that Verizon also offers anytime plan changes... they didn?t always and I am honestly not sure when they started offering it, but they do!!
by trevor_tj_88 January 26, 2009 7:55 AM PST
I live in a fairly remote area of Kansas and Alltell is really our only option around here. I have always envied the Verizon phones. Finally, I will have actual options! I'm looking forward to hopefully getting a Samsung Omnia for it's 5 megapixel camera. I don't think having much more than 5-8 mp is very important unless you do some heavy photo-editing. I don't understand the "more megapixels!!!!" craze...
Reply to this comment
by Buzdonald January 31, 2009 6:35 PM PST
About a month ago my service with Alltel, exspecially my broadband service has gotten and getting worse. I found out that this is about the same time that this is about the time that Verison stated integrating there local service here with Alltel. I'm not happy!!! i like and have enjoyed Alltels service for years and hate to lose it.
Reply to this comment
by sevenOduce February 2, 2009 12:06 AM PST
Now that Alltel merged with Verizon would i be able to buy a Verizon phone (BB Storm) and use it with my Alltel service? If so, will i still have my circle?
Reply to this comment
by H4MM3R February 5, 2009 4:07 PM PST
Nope!
by bunnybo0bo0 February 15, 2009 6:39 AM PST
You cannot use a Verizon phone until your market has converted the billing system... depending on what market you are in this could be anywhere from March to December... ((That is the tentative time frame anyway)) Just hang tight!!

I know that Verizon is allowing people with less than 4 months on their contract switch over now, but from my understanding they re-run your credit, so if anything has changed credit wise, you may not qualify for what you need, not to mention Verizon is harder on their credit checks than Alltel.

As for the MyCircle... Probably not!! Verizon is offering MyCircle plans now (called friends and family) but they are not offered on the blackberry/ smart phone plans from what I have seen. You can however get a basic plan and add on the blackberry internet service for 44.99 I believe.... but unfortunately, Verizon has yet to match our "Smart Choice" Plans
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