Feeds

Vodafone sees American horizons

Sarin makes one last lunge

Seven Steps to Software Security

Verizon, the US mobile operator part-owned by Vodafone, is in talks to take over Alltel, America's fifth largest operator, with a view to snatching the number-one spot from AT&T.

The story was broken by the Wall Street Journal, and Vodafone has confirmed that negotiations are taking place. Verizon apparently values Alltel at $27bn, or just over $2000 per customer, but more interesting is the network itself as Alltel has possibly the most extensive rural network in the US.

Both companies use CDMA technology, and already have roaming agreements, but Alltel also has a lot of debt, and taking on that debt would likely be a big part of any purchase price.

Verizon and Alltel networks do overlap in coverage, and service centres, so they could be synergised out to a cost saving of about a $1bn a year.

Combining the companies would create a customer base of 80.4 million, compared to AT&T's 71.4 million. It has been suggested that AT&T might make a counter-bid for Alltel, but that would attract a lot of regulator scrutiny: even the Verizon deal will need to be approved by the US Department of Justice and the Federal Communications Commission.

It will also create a company in which Vodafone has a significant interest, but not a controlling share or consolidated branding. In general the company has moved out of such deals in the last few years, but getting a US presence has been considered worth it.

If the deal goes through it will provide a suitable high point for Sarin, the Vodafone CEO who will be stepping down in a couple of months. ®

The smart choice: opportunity from uncertainty

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.