Leap moves to block Verizon-Alltel merger

It’s not just AT&T and the Rural Cellular Association that are asking the FCC to help muck-up competing wireless carriers’ merger deals. Leap Wireless has asked the FCC to block the $28.1 billion Verizon-Alltel merger deal that would have Verizon becoming the top wireless provider in the US.

The merger between Sprint and Clearwire would give Sprint the necessary infrastructure and WiMAX-expertise to launch their nationwide WiMAX-based XOHM wireless broadband data network. And, it’s understandable that other wireless carriers, with their own 4G data networks at least 3 years out (or not even on the roadmap at this point), would move to keep Sprint from becoming the data-centric provider to be reckoned with in the US.

Likewise, Leap doesn’t want Verizon and Alltel to become an even larger force in the US wireless market. The Verizon and Alltel merger would drastically reduce competition in the US wireless industry. The merger would also, they claim, make it harder for Leap to negotiate wireless roaming deals in the US. Leap has roaming deals with both Verizon Wireless and Alltel, and claims that if the FCC doesn’t block the merger or start regulating wireless roaming deals, Leap would be left without wireless coverage in some parts of the country. Leap claims that this would leave some of their customer base without service.

Verizon, for their part, said it would honor any roaming deals that Alltel currently holds.

[Via: Reuters]

About The Author

Will Park

Will hails from The City of Angels - Los Angeles, California. He spends his time playing with his numerous gadgets and looking forward to seeing what future holds for mobile technology. An avid promoter of a fully "digital" life, he promotes the widespread adoption of truly mobile, paper-less living. He dreams of the day when he can go completely digital. No more snail mail, paper receipts, bound books, notepads/spiral notebooks, credit cards, hard currency. He's a digital warrior - fighting for the converged life. He is an idealist and a realist - he has a perfect view of what the world should be but knows that the world is not perfect. Can we ever hope to see Will's dream become reality? We'll see...

remav

Who cares what Leap wireless thinkd there service is garbage and is the last resort for people. This country needs a great company and the Verizon merger will create the best of the best. Leap should have done better when the wireless industry was booming its not Verizons fault they made strong moves and Leap was happy being a bottom feeder.
Pandog

The merger really isn’t the best thing. Sure, it will increase coverage map area for verizon, but really this is just something to increase profits for Verizon, not improve pricing, rateplans or features for its customers. Verizon was paying Alltel a boatload in roaming dollars, and most of Alltel’s customers are from small carrier or unhappy Verizon/Sprint customers. I can almost promise that Verizon will lose about 10% of the customers coming in just because people already dislike the company…That is if any competition can even offer anything close. Sprint service (no matter how fast the datacard service is) is spotty in many areas, as is the old GSM AT&T and T-Mobile service if you’re not in the south. Eliminating competition through buyout usually doesn’t work out well for either company. It’s not like Verizon is going to adopt Alltel’s practices (despite that Alltel has always been the most financially responsible carrier). Don’t expect good things to happen for everyone when the dust settles.
Tyler

Why are people suck idiots…

WHY do you think Alltel put them self up for sale, AGAIN! They were in debt up to there eye balls.

This merge will help everyone out, trust me, and stop running your mouth when you don’t no anything. If you want to Keep Alltels plans, upgrade NOW. Verizon is not going to change anyones plans as long as they keep there alltel phone, now if they upgrade to a Verizon phone, then they must change to a Verizon plan which isnt much diffrent except for the My Circle which Verizon has something like for Business customers which MAY come to Verizon basic customers.

This merge will creat LOTS of jobs which the US NEEDS right now.