Run the numbers and the Verizon Alltel merger is a challenge to AT&T, which has been at the top of the major US cellphone carriers for some time now.
While AT&T has a solid 71M subscribers, number two Verizon has 67M and number five Alltel has 13M, which means this merger could create 80M customers combined.
Verizon could claim the ‘most reliable’ and most coverage in the US. The $2,100 per subscriber close to what Sprint paid in their for Nextel, which cost $36 billion or $2,350 per subscriber for the 15M Nextel users. Sprint did not really benefit from that deal.
In contrast, AT&T’s merger with Cingular brought AT&T out of the ashes.
Regulatory approval is still a hurdle and not so certain in the coming election climate. Read the rest of this entry »
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