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  1. #1
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    Angry Alltel going wireless only

    In the business section our local Sunday newspaper there was an article indicating that Alltel plans to spin off its land line business and become a wireless-only company. The author then speculated that after becoming wireless-only, Alltel would be a prime target for aquisition by Verizon. Adding Alltel's 35 million wireless subscribers to the Verizon list would put Verizon back ahead of Cingular. Considering the problems that 7135 owners are having with Verizon, I can't think of a more undesirable scenario for the 7135 owners currently with Alltel. Comments?

  2. #2
    Registered User thaxman's Avatar
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    There is alot of 800MHz overlap btw the 2 companies. A potential merger would be tied up in the FCC courts pending selloff of the overlapping liscenses long enough for all the 7135s on the network to die out.

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    How long is "long enough?" Alltel is still selling brand new 7135s today, many, I am sure with the insurance. As long as a service is selling new 7135s, it would seem that they would replace defective 7135 with new 7135s unless the customer specifies otherwise. It could take a very long time for all of the Alltel 7135s to "die out."

  4. #4
    Registered User thaxman's Avatar
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    Actually, they finally dropped the 7135 from their website last week. 1 year for warranty, and then maybe....
    What I don't like about the 650 is #1, it LOOKS like a Palm, so you gotta watch it like a hawk. If I left the 7135 @ an eatery, no one would think 2X about stealing it since it looks like some big old clunky phone. #2, the QWERTY keypad. My teachers always told me writing is better than typing. #3, no flip, not as ingenious a layout. #4 just squeezing a 650 too hard can damage it!!!! Maybe if we could rally - as a 7135 forum as well as those that left for the 650's browner pastures - some correspondance w/LG, maybe they would grant our wishlist!

  5. #5
    Registered User thaxman's Avatar
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    The big thing about Alltel is that they have spent 3 years gobbling up little rural providers, for the sake of being "THE" company to roam with. Since they share technology, performance standards & extra operating systems w/Verizon, when the whole MCI/Verizon parent company merger is fully digested, VZW will most likely attempt to wrap its tentacles aroud Alltel to get at all that roaming.
    But this may not end up the case, either though, since the reason Alltel wanted to roam w/Verizon was to lower roaming charges each pay to the other in order to better compete w/Verizon. In other words, Verizon doesn't really save any $$ by buying them. Unless there was a huge surge in population in non-top 100 metro areas in the US, I think Alltel will remain unmolested.
    The way things are now, Alltel is a few large cities where Verizon already is competing, and a whole lot of nowhere which could be expensive to maintain.
    Similarly, saving money on maintainance is one reason big corporations subcontract out payroll, housekeeping, billing, etc. Let someone else have the headache of maintaining the stuff that is not readily profitable and just buy what you need from them.
    Last edited by thaxman; 12-12-2005 at 04:43 PM.

  6. #6
    Registered User thaxman's Avatar
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    Sorry, but I can't stop now.
    I looked up the press release, and it appears that Alltel is Buying Valor, another rural landline company, and is merging the landline companies separate from wireless. Wireless has been the telecom pork for over a decade, while wireline keeps getting more & more anemic, so the spinoff makes sense.
    I would expect an Alltel/USCC merger before Verizon. If Alltel does in fact combine all of the rural companies into one large carrier with a mega-footprint, that would make it all the harder to buyout, since there would be anti-competition stipulations all over the place. I think that Alltel's leadership is one of the brightest in the game. Wish I had the $$ to get a good folder of their stock.
    Oh, 1 last thing: The reason Verizon, Sprint & Cingular have been buying lately has to do with spectrum (available channels) EV-DO & the GSM answer to it take alot of bandwidth to operate without clogging things up. AT&T had many cities where it operated in both the 800MHz & 1900MHz range, and when Cingular ate it, the amount of cities where the new company had 2 bands went way way up. Verizon bought all of Qwest's spectrum recently, gaining 2 bands in all of the western states except CA/NV, and if Sprint can get all of its Nextel people over to the Sprint network, it will have reoom for EV-DO as well. And lastly, there is still 1 more band of spectrum out there for almost every major city. Its been in bancruptcy protection for 7-8 years, but last I heard, was up for auction. THAT'S where Verizon is going to put their $$.

  7. #7
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    That is a pretty good case for Verizon not trying to acquire Alltel. I hope you are correct.

    Regarding the disappearance of the 7135 from the Alltel phone offerings: that is not a good sign although I suppose it was inevitable since the phone is not being manufactured any longer. The question now is what will Alltel do when a customer wants a replacement 7135 under warrantry? When new 7135s are truly gone, I suppose they will, like Verizon, offer the 650 as a replacement. I dropped my insurance when Alltel refused to honor it for the 7135 for a while, and I have never restarted it. So, if and when my 7135 fails, I will have more options than I would with the insuance at, probably, no significance cost difference.

  8. #8
    Registered User thaxman's Avatar
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    If its w/i warranty, then the customer will be referred to Kyocera, like before, I suppose, and Kyo now refers owners to Radio Shack. If its not w/i warranty, it will probably be like its always been - pay for repair, buy new @ full $ or upgrade, if possible.

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