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Could the Verizon-Alltel merger fail?

Verizon spent some time last week assuring us that the Alltel acquisition was still happening. This despite the economic turmoil which has affected the nation and the world. Jim Barthold of FierceWireless wonders, though, if Alltel’s debt really will play a part in the proceedings. Apparently, they use $7.7 billion this year, and it’s not the easiest time to refinance. Says Barthold:

The biggest concern, in money talk, is that the cost of protecting Alltel’s bonds from default has doubled. Credit-default swaps are now 226.8 basis points compared to 113.4 points Sept. 25 and 91.6 points when Verizon agreed to buy the carrier June 6.

We also learned that Verizon is making strides to make the acquisition happen. They already agreed to divest assets in 85 markets, and now have agreed to 15 more. By all appearances, Verizon is doing what it can to get this done. You know what they say about appearances, though…

In any event, I know many prepaid customers aren’t looking forward to this marriage. Alltel U prepaid is one of the better offerings on the market, especially for a major carrier. Conversely, Verizon INpulse is one of the least well-liked. Presumably, it will all be INpulse after the merger. Boo to that. There’s still some hope, though, that Alltel stays independent, if we’re to believe the above speculation.

5 Responses

  1. russ Says

    I feel the merger will benefit the prepaid customers because there will be fewer double dialings. Alltel has country coverage (which I like) and Verizon has the more populated areas like most cell phone companies does except Alltel. However you may have to update the PRL (preferred roaming list) on the phone because Alltel phones will roam on the Sprint network before it will roam on the Verizon network.

    Posted on October 13th, 2008 at 10:38 pm
  2. Kasey Henson Says

    Sounds good, but are we looking at say $10 + fees = $30 ?

    Posted on March 3rd, 2009 at 7:11 pm
  3. Brandon Says

    I agree. I doubt there will be a true benifit. I have Alltel’s U-Prepaid and I pay .75 a day for unlimited text messaging and night and weekend minutes. After studying prepaid phone plans, I saw that Inpulse had a bad unlimited plan for prepaid. I love U-Pepaid, and I don’t want to get rid of it. Verizon hasn’t made the best decisions in my opinion, so I doubt they will keep Alltel’s phenomenal prepaid plan. U fans may be forced to suffer.

    Posted on April 15th, 2009 at 8:16 pm
  4. madeline Says

    Does anyone know if they are going to officially get rid of u prepaid or if they are going to keep it?? i have been trying to desperately find this answer with no such luck.
    Also, if they do keep u-prepaid can we buy a verizon phone since alltel is no longer making phones?
    What time does nights and weekends end and begin?
    and my last question…can you use a “smartphone” like the blackberry on prepaid plans?
    If anyone can answer any of these questions then i will be extremely grateful :) thanks

    Posted on June 18th, 2009 at 8:43 pm
  5. Dusty Says

    Verizon has told me 500 times i cannot hook my prepaid existing alltel account to any pda or smartphone. well guess what? i got my prepaid alltel account to work on an alltel 8130 blackberry pearl. they still tell me its impossible until they read my esn. and they still tell me i cant put any other blackberry on my account. i think theyre full of shit now. customer service my ass. all i can to do find out is try it now. i want to get an 8530 and see if it will hook up just as well.

    Posted on January 10th, 2010 at 4:17 pm

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