The newest filing to the FCC reveals that Verizon has consented to divesting 54 cellular markets in 18 states to meet the concerns from the Department of Justice in regard to the merger with Alltel. The Department of Justice has also implicated roaming provisions that must accompany the divestiture. Public comment from the FCC is due tomorrow (July 25th). Pushing the merger through in a timely manner may prove to be difficult as the FCC board is now split equal Democrat and Republican chair holders. Verizon has also agreed that any company that currently has roaming agreements set with Alltel may keep them until the expiration of that agreement, and companies that have agreements with both Alltel and Verizon will be able to choose under what provisions they will keep until the termination of the contract. The FCC seems to have a very full plate this month concerning cellular. They are being lobbied from all directions by handset manufacturers and wireless carriers. The up-coming AWS-3 auction still is not finalized as they determine what the provisions will be in terms of open access, and weather they will continue with the auction as planned. The Rural cellular Association petitioned last week to have the spectrum cap reinstated. No doubt this petition was put into play because of fear on behalf of Rural Cellular Association the acquisition of Alltel will make them too large. Let us not forget Alltel being accused of blocking negotiation between Verizon and RCC a few years ago, in a deal that ultimately went south. RCA has many reasons to try to tie up the merger, but mostly I don't think that they want to see one company have the ability that will be given to Verizon with full control of the first National Network of this stature. We should know more information tomorrow if the public comment if favorable, then the merger should move quickly and jump all the hurdles with relative ease, otherwise Verizon and Alltel may be in for a fight to complete the approval process.
This article was edited for correction. The original article sited Rural Cellular Corp as petitioning the FCC when in reality it was supposed to have been Rural Cellular Association
Related Articles:
FCC: Alltel and Verizon's Final Hurdle Cleared
Department of Justice Approves Alltel / Verizon Merger
Live Blog: FCC Commission Meeting November 4th, 2008
Verizon Voluntarily Offers To Divest 15 Additional Markets
Alltel / Verizon Divestiture Map, and Future Coverage
I don't think you mean "Rural Cellular Corp" in your post. Are you sure you don't mean the Rural Cellular Association? Rural Cellular Corporation, who does business as Unicel is in the process of merging with Verizon Wireless.
Thank you for leaving a comment, and your correction. You are correct. This should have been Rural Cellular Association. I will correct this post immediately!