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MetroPCS Acquisition by Alltel

thbarnes

Dec 30, 2007, 8:37 PM
It is my intuition that MetroPCS and/or Cricket will be acquired by Alltel.

How did I arrive at this conclusion?

1. Alltel has a comprehensive nationwide roaming agreement with Sprint, which was a wireless industry first. Their agreement Allowed Alltel customers to roam on the Sprint network in major metro areas and Sprint customers to roam on Alltel in rural areas.

2. However, the next step in negotiations, an EVDO roaming agreement, never went anywhere, they stalled in 2005. Maybe things aren't all cheery between Sprint and Alltel.

3. Sprint is tanking, it's bleeding customers and racking up massive debt on it's ill-fated 4G "Xohm" network.

4. Alltel will want to retain it's access to major metro areas and even expand E...
(continues)
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wombough

Dec 30, 2007, 10:05 PM
wow you are so smart. But wait:
Alltel and sprint do have a EVDO roaming agreement and have for the last year or so.

Alltel is owned by investors so I doubt they will be buying anyone as thy are looking to be sold and the bigger they get the less likely that will happen.

Alltel is participating in the AWS so they will acquire spectrum for areas they are not in if they choose to keep alltlel or sell to another company and keep them whole.

I don't understand your whole intuition.
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rothenmr

Jan 4, 2008, 6:14 PM
I agree with wombough; I doubt MetroPCS will be acquired. They have deployed, starting with 1XRTT and expanding to EVDO, a CDMA network from the ground up.

Per the MetroPCS Wireless web site: "As of September 30, 2007, we had launched service in eight of the top 25 largest metropolitan areas covering a licensed population of approximately 39 million and had over 3.6 million total subscribers, representing a 40% growth rate over total subscribers as of September 30, 2006."

This doesn't smell like a company ready to sell or be acquired.

Of course everyone is entitled to their own opinion.
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themps

Jan 17, 2008, 11:35 PM
It all depends on how much spectrum alltel is able to win in the next auction. If they can't win as much as they wanted, and they still want to grow, then they may purchase metropcs or cricket. The EVDO agreement has been together for quite some time. In fact you can't get more comprehensive broadband coverage with any other two providers then alltel or sprint.
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