Next Big Wireless Merger Approved

Another wireless carrier will disappear with the approval this week of the Verizon-Alltel merger by the FCC. The Commission did put some conditions on the takeover: it found a potential for competitive harm in just five markets and required that one of the two companies divest its' licenses and related assets in those markets. Otherwise, Verizon Wireless will have to go through with its' voluntary plan to divest some assets in 100 markets, and the FCC will examine roaming commitments by Verizon. The FCC used a market-by-market competitive screening to analyze the possible consequences of the merger, rather than a nationwide spectrum cap approach. The Commission's press release says the transaction "will allow Verizon to provide a more robust and truly national wireless service."

--Published in UTC Industry Intelligence 11/6/08