FAQs

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  1. What are the main assets that Verizon Wireless must divest as part of its acquisition of Alltel?
    Verizon Wireless must sell off assets in 22 states, including 2.1 million wireless subscribers, wireless spectrum, and equipment valued at around $3 billion.

  2. Who are some of the bidders interested in acquiring the Alltel subscribers and network?
    AT&T, private-equity firms Carlyle Group and Kohlberg Kravis & Roberts & Co., as well as Providence Equity Partners and at least one cable provider, have expressed interest in acquiring the assets.

  3. Why are consumer advocates and rural phone companies concerned about AT&T acquiring these assets?
    Consumer advocates and rural phone companies believe that AT&T acquiring these assets might lead to expensive roaming rates for smaller carriers, impacting competitive pricing for consumers.

  4. What is the significance of Verizon Wireless and AT&T in the U.S. wireless market?
    Verizon Wireless and AT&T are the top two wireless operators in the U.S., collectively serving over 160 million subscribers and accounting for almost 60 percent of all cell phone service in the country.

  5. Why do critics suggest that Alltel’s assets should go to a smaller wireless player instead of AT&T?
    Critics argue that allocating Alltel’s assets to a smaller wireless player would foster more competition rather than allowing the second-largest operator to gain more customers and spectrum, potentially reducing consumer choice.

  6. What regulatory approval is required for AT&T to acquire the Alltel assets?
    The deal between AT&T and Verizon Wireless regarding the Alltel assets needs approval from the U.S. Department of Justice, with evaluation likely to occur market by market.

  7. Why do some industry experts believe that AT&T acquiring the divested Alltel assets could benefit consumers?
    Experts like Dan Meyer suggest that AT&T acquiring Alltel’s assets could benefit rural consumers by providing access to the Apple iPhone, a device previously unavailable in some rural markets due to carrier restrictions.

  8. How could AT&T’s potential acquisition of Alltel assets impact rural consumers?
    Rural consumers could benefit from increased access to the Apple iPhone and potentially improved service offerings in regions where national carriers have limited presence.

  9. What is the primary concern regarding the exclusivity agreement between AT&T and the iPhone?
    The exclusivity agreement between AT&T and the iPhone has limited consumer access to the latest technology in certain markets, prompting discussions about the implications of such exclusivity deals.

  10. What are the views of rural trade groups regarding AT&T’s potential acquisition of the Alltel assets?
    Rural trade groups are concerned that AT&T might impose costly roaming rates on smaller carriers in rural regions, leading to potential challenges in maintaining competitive pricing for consumers.

  11. What could be the potential benefits and drawbacks of AT&T acquiring the Alltel assets for rural markets?
    While access to the Apple iPhone and expanded service offerings are potential benefits for rural consumers, concerns about pricing, competition, and market dynamics remain key considerations.

  12. How might the acquisition of Alltel assets by AT&T impact the overall wireless market landscape in the U.S.?
    The acquisition of Alltel assets by AT&T could potentially reshape the wireless market landscape in the U.S., influencing competition, consumer choice, and technological access in different regions.

Summary

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The acquisition of Alltel assets by Verizon Wireless has attracted interest from various bidders, including AT&T and private-equity firms. While concerns about consumer impact and market competition have been raised, potential benefits for rural consumers, such as access to the Apple iPhone, are also being discussed. The regulatory approval process and market evaluations will play a crucial role in determining the outcome of the acquisition deal. As the wireless market dynamics evolve, the implications of such acquisitions on pricing, competition, and technological access for consumers, especially in rural markets, will continue to be scrutinized.

Source: https://anytimesoftcare.com
Category: Internet