Editor’s Note: RCR Wireless News goes all in for “Throwback Thursdays,” tapping into our archives to resuscitate the top headlines from the past. Fire up the time machine, put on the sepia-tinted shades, set the date for #TBT and enjoy the memories!
Verizon buys Alltel
Verizon Wireless’s purchase of Alltel Communication L.L.C. is leaving many gasping for breath. The $28.1 billion purchase of the nation’s fifth-largest U.S. mobile operator seems to make sense for Verizon Wireless, both strategically and financially. However, for the private-equity investors who purchased Alltel less than a year ago, the payoff isn’t as sweet. TPG Capital and GS Capital Partners purchased Alltel for $27.5 billion last November. Verizon Wireless has become some what of the Goldilocks in this ongoing purchase of Alltel. Verizon Wireless has wanted to purchase the carrier for sometime, saying no the first time and no the second time (the same time that TBG and GS did go through with the purchase). But the third time, the price was juuusst right. Verizon Communications Inc. CEO Ivan Seidenberg said during a conference call that he had approached Alltel in April regarding a possible deal and that negotiations turned serious a few weeks ago. When and if the deal closes, Verizon Wireless will end up paying $5.9 billion in equity for Alltel, leaving TPG Capital and GS Capital Partners with around a $1 billion profit. Yes, it is a billion dollars, but it’s much lower than the normal profit equity firms receive in these deals. It basically boils down to the equity investors making little or no more than what they paid for Alltel last year. Seidenberg said the price was similar to what the Verizon was willing to offer for Alltel last year prior to being acquired by private equity, but with the benefit of Alltel having grown its business over the past months. … Read more
Sizing up content context in the VZW + Alltel combo
The sparse, rural areas that AlltelCommunications L.L.C.’s network covers and the demographics it serves lead some to assume Alltel would have relatively little data uptake, but the numbers tell a different story. The No. 5 carrier is outperforming its four larger competitors in numerous content categories. From March to April, Alltel customers’ use of news and information, video and e-mail jumped in the double digits in many categories tracked by comScore M:Metrics. Watched video grew 28.2% month-over-month, instant messaging increased 19.9% in that month and e-mail jumped 11.8%, according to the firm. “Alltel has seen a lot of growth in consumption on the content side,” said Seamus McAteer, senior analyst at the firm. It’s difficult to draw sweeping conclusions based on the data, but few in the industry would argue against Alltel being labeled one of the most innovative operators when it comes to mobile content. “For the last 18 months, they’ve definitely stood up as one of the innovative operators,” McAteer said. “Alltel has been aggressive,” he said. “They have some things on deck that Verizon doesn’t.” Facebook enjoys play on Alltel, while you can’t find it on Verizon Wireless deck, he added. … Read more
Leap launches in St. Louis
Leap Wireless International Inc. is set to turn on its Cricket service tomorrow in St. Louis, Mo. Leap said the service will be available at nine St. Louis area retail stores and at more than 80 authorized dealers. The value-driven wireless service offers a number of unlimited plans ranging from $30 to $60 per month. … Read more
Tell us more about PDAs, Motorola
The woes besetting Motorola Inc.’s consumer handset division have been the stuff of headlines for the past year. The company has said it remains committed to creating two independently traded businesses that would send the handset division off on its own, while keeping its enterprise mobility, home and networks mobility businesses intact. Analysts have noted that Motorola’s enterprise mobility business has provided a significant slice of Motorola’s revenue and profits as its bread-and-butter handset division faltered. So we spoke with Sheldon Safir, director of product marketing for mobile computing at Motorola, on the eve of a new enterprise device launch that clarified one pressing issue: Moto’s enterprise unit independently develops and delivers its own robust devices for myriad business uses. And, like many enterprise-oriented vendors, Safir makes a convincing case for enterprise to invest in productivity gains and cost efficiencies with a clear return-on-investment, even under uncertain macro-economic conditions. … Read more
Mobile instant messaging is going to replace SMS, e-mail
Mobile instant messaging will eventually cannibalize SMS and computer-based e-mail, according to a survey from TNS Technology. The survey of 17,000 respondents in 30 countries found that once users adopt MIM, it becomes their primary non-voice method of interacting with others. … Read more
Mobile marketing for automobiles
Who’s sending that text message to your cellphone? It could be your neighborhood auto dealer. Dealers are joining other auto advertisers in marketing on mobile phones. Consumers now can gain access to many dealerships’ listings of new and used vehicles – complete with photos, prices, condition reports, contact information and directions to the showroom – on their phones. Consumers rather than dealers activate the text messages. Dealers, meanwhile, are using traditional print and broadcast ads to alert cellphone users to the new venue. “If you are walking out of the house in the morning, what do you take with you?” said Mikhail Melomed, Internet director at Honda Mall of Georgia in the Atlanta suburb of Buford. “The cellphone. It is the most direct way to market. It is just like a Web site. It creates walk-in traffic and inquiries.” Customers can get information about Melomed’s dealership by entering a keyword and a five-digit code on their cellphones, just as if they were voting on American Idol. … Read more
Check out RCR Wireless News’ Archives for more stories from the past.
