Verizon Wireless has entered into an agreement with Alltel Corporation and Atlantis Holdings LLC, an affiliate of private investment firm TPG Capital and GS Capital Partners, to acquire Alltel Corporation in a cash merger. Verizon Wireless is a joint venture of Verizon Communications (NYSE: VZ) and Vodafone (NYSE and LSE: VOD).
Under the terms of the agreement, Verizon Wireless will acquire the equity of Alltel for approximately $5.9 billion. Based on Alltel’s projected net debt at closing of $22.2 billion, the aggregate value of the transaction is $28.1 billion.
The parties are targeting completion of the merger by the end of the year, subject to obtaining regulatory approvals.
Once this transaction closes, customers of both companies will have access to an expanded range of products and services, including a premier lineup of basic and advanced devices and an expanded IN Network calling community. Alltel customers also will benefit from advanced services including over-the-air downloadable music from a three-million-song library, and a network that is nationwide, for a uniform coast-to-coast experience. They also will be able to take advantage of industry-leading consumer policies, including Test Drive and Worry Free Guarantee®.
“This move will create an enhanced platform of network coverage, spectrum and customer care to better serve the growing needs of both Alltel and Verizon Wireless customers for reliable basic and advanced broadband wireless services,” said Lowell McAdam, Verizon Wireless president and chief executive officer.
Alltel serves more than 13 million customers in markets in 34 states. This includes 57 primarily rural markets that Verizon Wireless does not serve. The transaction puts the Alltel markets and customers on a path to advanced 4th generation services as Verizon Wireless deploys LTE technology throughout its network over the next several years. Alltel’s customers also will reap the benefits of Verizon Wireless’ Open Development initiative, which welcomes third-party devices and services to use the Verizon Wireless network.
Verizon Communications, the owner of the majority stake in Verizon Wireless, expects that the transaction will be immediately accretive, excluding transaction and integration costs. “This is a perfect fit, with Alltel’s high-value post-paid customer base, its solid financials, our common network technology, and significant, readily attainable synergies,” said Ivan Seidenberg, Verizon chief executive officer and chairman of the Verizon board. “Verizon Wireless’ acquisition of Alltel clearly provides opportunities for enhanced value for Verizon shareholders.”
Alltel President and Chief Executive Officer Scott Ford will continue in his current position as head of Alltel until the merger is completed.
“Both Alltel and Verizon Wireless have long track records of delivering a high-quality customer experience in the marketplace,” Ford said. “The combination of our two companies will continue and improve upon that heritage as, together, we can more quickly deliver an expanded range of innovative products and services to our customers.”
Verizon Wireless expects to realize synergies with a net present value, after integration costs, of more than $9 billion driven by reduced capital and operating expense savings. Synergies are expected to generate incremental cost savings of $1 billion in the second year after closing.
Alltel and Verizon Wireless both use a common network technology, which provides advantages of a seamless transition for Alltel customers, ease in integrating the two companies’ networks, and scale efficiencies in operating the larger integrated network.
Morgan Stanley acted as financial advisor to Verizon Wireless on this transaction and is providing bridge financing. Debevoise & Plimpton LLP acted as legal advisor to Verizon Wireless.
Citibank, Goldman Sachs and RBS advised the sellers on the transaction. Wachtell, Lipton, Rosen & Katz acted as legal advisor to Alltel, and Cleary Gottlieb Steen & Hamilton LLP and Ropes & Gray LLP acted as legal advisors to the sellers.
The PhotoCopter service is exclusively available to Alltel customers with the Motorola V3m, V3a, V9m and ROKR for $2.99/month, providing customers with unlimited picture transfer to their PC, email address, and web photo albums including Photobucket, Flickr, Blogger, and Snapfish.
“Alltel realizes that our customers are capturing amazing memories on their camera phones, but until now, they have not had an easy way to transfer them to a PC for printing or sharing,” said Craig Kirkland, director of messaging and voice products at Alltel Wireless. “PhotoCopter is a simple to use application that will allow our customers to get the most of their phone’s camera and enjoy their photos in any setting.”
“We’re excited to be working with Ontela and Alltel Wireless to enable photo upload services from Alltel customers to our social networking site, Photobucket,” says John Smelzer, SVP & GM Mobile, Fox Interactive Media. “As camera phones become ever more critical, at the edge of the social network, the PhotoCopter service becomes an irreplaceable agent for the new generation of user created content.”
”It doesn’t even feel like software,” said Dan Shapiro, CEO of Ontela. “You just take the pictures and as if by magic, they appear on your computer in your ‘My Pictures’ folder. This is the end of the ‘photo graveyard,’ where people take pictures and then leave them on the phone until they’re deleted. Instead, we’ve given a new life to these memories by saving them to the places users care about most.”
The PhotoCopter service addresses a widespread problem for camera phone owners: it is often difficult to get pictures off of a camera phone. On a typical phone model, it requires 100 keystrokes to get ten pictures transferred to a PC. While a recent Ontela study reported that 93 percent of camera phone users want to save their pictures to their home computer, only 24 percent of camera phone users can actually do it.
Alltel Wireless, America’s largest network, providing coverage across the nation, and LG Electronics MobileCommU.S.A., Inc. (LG Mobile Phones) today announced that the highly anticipated GlimmerTM by LG will be exclusively available in Alltel retail stores and online at shopalltel.com beginning tomorrow, March 13. With a slide-out keypad and touch-screen interface, the LG Glimmer incorporates traditional phone functions with the latest multimedia features.
The LG Glimmer is loaded with a 2 MP camera with video capabilities, an MP3 player with customizable equalizer, an expandable memory slot and is GPS capable. This slick phone is rich with several of Alltel’s Axcess applications including Alltel Navigation, Axcess Search, CityID and Axcess TV. In addition, users can listen to their favorite music while utilizing other multimedia features on the phone, such as taking photos, recording video or sending text messages. The Glimmer also features 3D graphics support and 128MB of internal memory.
“With touch-screen phones revolutionizing wireless, the LG Glimmer from Alltel has an innovative new touch interface while offering the convenience of a slide-out physical keypad,” states Brian Ullem, vice president of device strategy for Alltel Wireless. “Its large display and multimedia capabilities allow our customers to access and manage their video and music with a simple touch.”
“Consumers will appreciate the durable metal body of this elegant, user-friendly mobile phone,” said Ehtisham Rabbani, vice president of product strategy & marketing at LG Mobile Phones. “With its slim form factor and large sliding touch screen the Glimmer by LG is another example of forward-thinking technology and design.”
Alltel Wireless is offering the Glimmer by LG for $249.99 after a $100 mail-in-rebate. This discounted price is available to new customers who sign-up for a two-year service agreement and to existing eligible customers on qualifying rate plans. All Alltel customers who purchase the LG Glimmer and are on a qualifying rate plan are able to receive “My Circle,” Alltel’s exclusive calling feature allowing customers to receive unlimited calling to any five, 10 or 20 numbers, any network. In addition, Alltel was the first to offer Anytime Plan Changes, giving customers the flexibility to change their calling plans at any time, without extending their current contract.
The LG Glimmer also supports Alltel’s new service, Axcess Voice2TXT. The service, which is available on any Alltel Wireless SMS text message capable phone, quickly converts incoming voicemails to text messages in the customer’s inbox and also allows customers to store and forward converted voicemails as regular text messages. For more information on this innovative feature, please visit www.alltel.com/voice2txt.
Alltel Wireless, America’s largest network, providing coverage across the nation, today announced it will offer Voicemail MAXTM, an application which enables customers to personalize outgoing voicemail greetings with the voices of Hollywood stars, comedians, celebrity impersonators, and top-selling music artists. Developed by 9 Squared, a Zed Company and leading provider of mobile content in the U.S., Voicemail MAX features content from Larry the Cable Guy, Steve Harvey, Orlando Jones, T.I., and popular voices from COMEDY CENTRAL’S “RENO 911!”
“With Voicemail MAX from Alltel Wireless, our customers now have a fun way to personalize their wireless service,” said Kristi Crum, director of multi-media content for Alltel Wireless. “With hundreds of messages to choose from, customers can select voicemail greetings that match their personalities for incoming calls from friends, family and colleagues.”
Voicemail MAX is available on select phones and provides access to over 500 audio clips recorded by premier voice talent. The application is available for download and preview at no additional cost via the phone’s main menu. One greeting may be purchased for $2.99, and customers can choose from a wide variety of content categories including Hip Hop Celebrities, Rock Stars, Sports, Business, Holiday, Cartoon, and many others.
“Voicemail MAX establishes a new category for mobile personalization. Our unique content from providers like Warner Music Group and MTV Networks allows Alltel Wireless subscribers to customize their voicemail greetings with entertaining clips from the worlds of comedy, music and pop culture,” said Brian Casazza, Chief Executive Officer for 9 Squared. “We are pleased to team with Alltel Wireless, a leading provider of cutting-edge, fun and engaging solutions for their subscribers.”
Alltel Wireless, America’s largest network, providing coverage across the nation, today announced that three new handsets – the LG Scoop, red BlackBerry Pearl 8130, and the Samsung Muse – plan to be available in Alltel retail stores and online at www.alltel.com/style during the first quarter of 2008. Whether into music, messaging or quick access to applications on the go, such as e-mail and the Internet, Alltel customers can choose from an extensive lineup of phones in brilliant colors to find one that fits their unique personality.
“Alltel strives to provide customers with phones that have the most innovative technology and allows them to express their individual style,” said Brian Ullem, vice president of device strategy for Alltel Wireless. “Our phone lineup delivers a variety of functions, from music to messaging, which will give our customers the ultimate wireless experience.”
Messaging Made Quick and Easy
For people who stay connected through text messaging, the LG Scoop allows customers to take it easy on their thumbs with a messaging-friendly QWERTY keyboard and chat-style IM. Offered in three colors including citrus orange, slate gray and turquoise blue, the LG Scoop has AOL Instant Messenger and Yahoo! Messenger pre-loaded, so there is never a missed message. The phone also features a 1.3 MP camera with video capabilities and is Celltop-ready as well as Bluetooth capable. The LG Scoop is the ideal phone to use Alltel’s new service, Axcess Voice2TXT, which converts incoming voicemails to text and sends them to the customer’s text inbox. With the QWERTY keyboard, users of this phone will be able to easily and discretely respond to voicemails.
Coolest Smartphone is Now Red Hot
The BlackBerry Pearl 8130 smartphone, now available in red, gives customers an exceptional mobile experience with powerful communications and multimedia capabilities. This sleek, eye-catching smartphone offers e-mail, fast HTML Web browsing, a 2 MP camera with flash and video capture, GPS capabilities, Bluetooth wireless technology and microSD expandable memory. With the stylish red BlackBerry Pearl 8130, customers can multi-task like a pro, and look good while doing it. This smartphone is available for pre-order at www.alltel.com/style.
When Music is Your Inspiration
The Samsung Muse sports a fresh look and a stimulating sound to satisfy all who find inspiration in music. With the Samsung Muse, those passionate about music always have their favorite tunes within reach. Users can customize the phone with a dedicated music key for ringtones, XM Radio Mobile and easy access to the MP3 player. The modern design, available in midnight blue, also features a 2 MP camera with video capabilities, GPS capabilities and is preloaded with Axcess Mobile Guide and Stereo Bluetooth technology. Multimedia fans can also enjoy streaming music from their PC using Music Powered by Celltop along with premium preloaded applications like Axcess TV and Search.
Alltel Wireless, America’s largest network, today announced that it is the first U.S-based carrier to offer small business customers SalesNOW®, a contact, activity and deal management software designed for the BlackBerry® and the Web. SalesNOW utilizes the functionality of the BlackBerry to provide customers with the ability to manage their sales data in the palm of their hands.
With the SalesNOW application, professionals can track and manage their contacts, deals, activities and e-mails as well as access and share information with their entire sales team. Customers can perform these activities on their BlackBerry or on the Web through an individual, secure SalesNOW account. Changes the user makes within SalesNOW on the BlackBerry are automatically synced to SalesNOW on the Web and vice versa. The application also allows sales teams to provide up-to-date information on sales activity, view and print weekly activity reports, collaborate on team forecasts, track sale details and next steps on business deals.
Additionally, SalesNOW enhances administrative time management and productivity by giving users the ability to update graphical reports and dashboards, which allows professionals to focus on building quality customer relationships.
“SalesNOW allows our small business customers to better manage their workload no matter where they are,” said David Maddox, director of advanced data solutions for Alltel Wireless. “This innovative solution is the ultimate sales tool for the mobile professional and demonstrates Alltel’s commitment to deliver the most beneficial business applications available today.”
The software is available for $25 per month for individual users or $40 per month for enterprise users with qualifying smart choice data plan on all Alltel Wireless BlackBerry smartphones. For more information, or to purchase SalesNOW and subscribe to the service, visit www.alltelsolutions.com or consult with an Alltel Business Representative by calling 888-4AT-BIZZ.
On alltelsolutions.com, business customers can find an array of solutions to fit every business need. Alltel recently launched several products to assist its customers in their daily tasks, including Alltel WiFi, an easy-to-use solution that instantly provides customers with laptop access to thousands of hotspots, and TimecardGPS, an application that enables users to track employee locations, record shift time and capture job or work order information.
Alltel also offers its business customers with smartphone devices “smart choice packs” a special rate plan, which provides national voice minutes with an unlimited data plan and features such as “My Circle,” an industry-defining feature giving customers on varying calling plans the freedom of unlimited calling to and from five, 10 or 20 numbers on any network for free.
The iPhone has been doing an impressive job at hitting Steve Jobs self-made goal of 10 million in its first year with making the halfway point in December of 2007. Sending PocketPC, err, Windows Mobile devices scrambling, popular hardware maker HTC quickly answered Apple’s call for ease with the the Touch. While attempting to fix many of Microsoft’s ills on the mobile platform, it’s still no iPhone. But still, a nice phone in itself and now Alltel users can have one.
The following is the press release sent to SvenOnTech today.
The compact and stylish HTC Touch provides customers with a new way to stay connected and access music, photos, information, games and more. This sophisticated smartphone is easy to operate by using a finger to simply swipe or tap the innovative touch-screen “cube” interface. Alltel’s HTC Touch features four panels on the “cube,” including an Alltel-exclusive panel that provides customers with quick access to the latest smartphone applications to personalize their phones and help do more on the go. Customers can also customize the phone with ringtones, themes and games, in addition to pre-programmed links to shopping applications.
The additional panels provide easy access to contacts, including the ability to assign photos to each name; allow users to launch their applications at the touch of a button; and launch the HTC Touch’s multimedia functions, such as the music player, photos and video, with a tap of the finger.
The smartphone also provides access to Alltel applications, including the new Voice2TXT service from Spinvox that converts incoming voicemails to text and sends them to the customer’s text inbox, allowing them to discretely respond to voicemails via text messages without dialing their phone.
“The HTC Touch provides our customers with the information they want, and the personalization they desire, right at their fingertips,” states Brian Ullem, director of device strategy for Alltel Wireless. “This elegant, modern smartphone is perfect for style-conscious buyers who want the functionality of a PDA with swift access to their photos, videos, music and more.”
The HTC Touch features a 2MP camera with video, Windows Media Player, a MicroSD memory card slot, Bluetooth Wireless Technology and Windows Mobile 6.0 Professional. It is also preloaded with a variety of applications on the Alltel exclusive fourth panel of the “cube,” including:
Alltel Wireless, America’s largest network, providing coverage across the country, and SpinVox, the leading provider of Voice-to-Screen™ messaging, today launched a new service called Voice2TXT. The launch makes Alltel Wireless the first of the five largest U.S. carriers to offer its customers the ability to receive voicemails in text form.
Voice2TXT is available on any Alltel Wireless SMS text message capable phone and quickly converts incoming voicemails to text messages in the customer’s inbox. This innovative service allows the user to discretely respond to voicemails in any setting without having to dial and listen to voicemail messages. Voice2TXT also allows customers to store and forward converted voicemails as regular text messages as well as retrieve the original voicemail should they choose to do so.
“Our customers will appreciate the fact that they no longer have to wait for the opportune time to listen to a voicemail” said Craig Kirkland, director of messaging and voice services for Alltel Wireless. “With Voice2TXT, our customers have an easier way to manage their voicemails via text messages when they are in a meeting, on the go or anyplace where they cannot or do not wish to use traditional voicemail.”
“SpinVox’s Voicemail-to-Text technology gives Alltel customers the opportunity to enjoy a real visual voicemail experience from coast to coast,” said Christina Domecq, co-founder and CEO of SpinVox. “As the first major innovation in voicemail in decades, Voice2TXT as delivered by SpinVox eliminates the frustrations with dialing into voicemail by offering a discreet, efficient alternative – eliminating the need to search for a pen to write down the details of a message or navigate through a voicemail service.”
The service is available in a variety of pricing options: $4.99 per month for 20 voicemail conversions (each additional is 25 cents); $9.99 per month for 50 conversions (each additional is 20 cents); and $19.99 per month for 100 conversions (each additional is 10 cents). For more information on this innovative new feature, please visit www.alltel.com/voice2txt.
Alltel Wireless also offers features including “My Circle,” allowing customers to choose who they call for free – any 10 numbers, any network; and Anytime Plan Changes, giving customers the flexibility to change their rate plan any time, without extending their contract.
Alltel Wireless, America’s largest network, providing coverage across the nation, today announced the availability of TimecardGPS, an application that enables users to track an employee’s location, record shift time and capture job or work order information from LBS-enabled wireless phones.
The TimecardGPS application, available for $12.49 per handset per month, allows business professionals to increase productivity by using their wireless device to perform a variety of important tasks, including:
Tracking – Enables supervisors to request field workers’ locations, track movement and set up “smart fences” to determine employee location
Team Clock-in and Out – Allows a supervisor to clock-in and clock-out employees as well as capture individual task information on a single wireless device
Real-time job tracking – Sends real-time job information from field workers to employers, complete with tasks, subtasks and editable fields
Customized reports – Supplies electronic reports with payroll, job costing and productivity information
Web log-in – Provides real-time access to field workers’ positions, timesheet and job information via the Internet
“In today’s fast-paced business environment, there is a need for supervisors to have rapid access to information regarding their field employees and their progress,” said David Maddox, director of advanced data solutions for Alltel Wireless. “The TimecardGPS application provides a supervisor instant information on an employee’s exact location and job completion data.”
For more information on TimecardGPS, please visit www.alltelsolutions.com/timecardgps.
Whether staying in a hotel, waiting for a flight or drinking a latte at the local coffee shop, Alltel customers can now connect to the Internet virtually anywhere. Alltel Wireless, America’s largest network providing coverage across the nation, today launched Alltel Wi-Fi, an easy-to-use solution powered by Boingo Wireless that instantly provides customers with laptop access to thousands of hotspots throughout North and South America. Alltel also provides wireless broadband access via Alltel Wireless Internet service, allowing customers to access the Internet from their laptop or smartphone at speeds of up to 2.4 Mbps on its nationwide data network.
Through Alltel’s relationship with Boingo, the world’s largest network of Wi-Fi hotspots, Alltel customers will be able to enjoy a fast connection all over the country. To provide customers with maximum coverage, Alltel is offering a Wi-Fi and EVDO Wireless Internet “bundle,” delivering unlimited Wi-Fi access from any supported hotspot starting as low as $9.99 per month, in addition to the customers’ Wireless Internet Plan. Pre-paid Wi-Fi cards are available at Alltel Wireless retail stores for $19.99 per week or $9.99 per day. Additionally, users can purchase Wi-Fi access at https://wifi.alltel.com.
“Wi-Fi is an excellent complement to Alltel’s existing portfolio of wireless internet solutions and is a good fit with Alltel’s strategy to provide customers with more ways to connect wirelessly to the Internet, email, or corporate intranet,” said David Maddox, director of product marketing for Alltel Wireless. “Alltel customers will get the best available wireless broadband connection throughout the country with EVDO and Wi-Fi from Alltel.”