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One of the major worries of the pending Verizon-Alltel merger is that it will further sap competition in the wireless space. This is understandable, considering you’re taking the nations’ No. 2 carrier and combining it with the No. 5 carrier to create the No. 1 carrier. After official approval, Verizon will have over 80 million subscribers, surpassing AT&T, the current national leader. The Public Interest Spectrum Trust wants the FCC to think long and hard before it gives wireless carriers even more power, says the Washington Post.

“We’re scratching our heads on how this agency can rush to let the nation’s second largest carrier gobble up a strong competitor like Alltel to become the nation’s largest carrier,” said Chris Murray, senior legal counsel for Consumers Union. “I guess its Christmas in October for the wireless phone companies.”

The Post has an anonymous FCC source who says the deal is being rushed because they want to get it through before the presidential election. It is currently up for vote on November 4.

While we, like nearly every wireless blog, bemoans the lack of competition, that isn’t the main reason I’d like to see this deal fall through. No, it’s because I’m a fan of Alltel’s U prepaid. Yeah, the double-dialing is annoying, but the prices aren’t. Once this goes through, it will only be a matter of time before Alltel customers are forced to pick from among Verizon’s INpulse plans.

Posted By : Joe
Posted at : October 21st, 2008 - 10:00 am
Filed under : Consumer Issues