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Alltel




  Company Logo
  Company Type Public ()
  Foundation 1983
  Location Little Rock, Arkansas , USA
  Key People Scott T Ford , President & CEO
  Industry Communications Services
  Products Telecommunications
  Revenue $79 billion USD (2006)
  Net Income $842 million USD (2006)
  Num Employees 15,000+ (2006)


ALLTEL Corporation () is an American Telecommunications company with headquarters in Little Rock , Arkansas . Alltel provides wireless services to residential and business customers in 35 states. States with no Alltel service whatsoever include: Alaska, Delaware, Hawaii, Indiana, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Washington, and Washington, D.C.

On May 20, 2007, Alltel agreed to be bought out by TPG Capital, L.P. and Goldman Sachs for $27.5B. {Link without Title}

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COMPANY

With a market cap of $24.79 billion and over 12 million customers as of early 2006, Alltel is the largest regional mobile phone company in America, and the fifth largest mobile phone company overall. The wireless group provides service in parts of 35 states. The company mainly focuses on small to medium-sized cities, but has low-cost roaming agreements with the major national CDMA carriers, especially Verizon Wireless and Sprint-Nextel , in order to provide national service. Reciprocal agreements in turn provide those carriers with coverage in rural areas. When Alltel acquired Western Wireless in 2005, it gained a large GSM footprint as well. While it does not offer GSM service to its own customers, Alltel has indicated that it will continue to maintain the GSM footprint (and perhaps even expand it) to provide roaming service to GSM users of other wireless carriers; however, one exception is that as of April 1, 2007, Alltel no longer maintains the GSM footprint in the coverage area it acquired from First Cellular of Southern Illinois. It offered previous GSM customers in the affected area to sign a new agreement with Alltel, requiring affected customers to purchase a new CDMA phone. Alltel advertises itself as "owner and operator of the nation's largest wireless network"; this claim refers to geographical coverage (total square miles covered) of its owned, "native", network rather than number of Alltel customers, population covered, or coverage with roaming agreements.

In 2006, Alltel added 640,000 net customers through internal growth, an 87 percent increase. Post-pay churn was 1.57 percent and total churn was 2 percent, both improved from the previous year. The company also acquired more than 500,000 customers through the purchases of Midwest Wireless, First Cellular of Southern Illinois, Virginia Cellular and Cellular One in Amarillo, Texas.


EXECUTIVE TEAM



HISTORY

In 1943, Allied Telephone Co., a small business specializing in installing telephone poles and cabling for telephone companies across Arkansas , was founded by Charles Miller and Hugh Willbourn, Jr.

Alltel's modern history begins in 1983 when Allied Telephone and Mid-Continent Telephone, founded by Weldon W. Case and his younger brother, Nelson H., merged. The elder Case became Alltel's first chairman, based in Hudson, Ohio , where Alltel was first headquartered. In 1985, Alltel launched its first wireless system in Charlotte , North Carolina , and by 1993 Alltel had opened its first wireless retail store. Alltel was named to the S&P 500 Index in 1994. Since 1995, the Jacksonville Jaguars have played at Alltel Stadium . By 1996, long-distance service was offered and in 1997 the company's wireless and wireline businesses converged into a single organization.

On , which on April 10 , 2006 , announced it will take the name Windstream Communications . The merger-spinoff process ended July 17 , 2006 , when Windstream began operations. {Link without Title}

On May 20 , 2007 , Alltel announced an agreement to be sold to two private-equity firms TPG Capital and GS Capital Partners. Under the deal, the two firms will pay $71.50 a share in cash, or 27.5 billion, a 10% premium over Alltel's May 18, 2007, closing price.


NETWORK TECHNOLOGY

Alltel networks consist of analog and digital systems operating primarily on the 800 MHz cellular band, much like Verizon Wireless . Alltel has recently added a few 1900 MHz PCS sites in various places, such as Jacksonville, Florida and Wichita, Kansas for greater system capacity. Native Alltel markets consist of both analog ( AMPS ) and digital ( CDMA ) technologies. Select markets have been outfitted with 3G 1xEV-DO digital technology, which allows for additional battery life and faster download times when using Internet or BREW-based applications. AMPS is still in place and in use in most places, but the company acknowledges that it is aggressively converting analog customers to digital technology. In 2005, an Alltel spokesman stated that only 15% of its customer base still uses analog. Alltel has yet to release official plans in response to the FCC decision stating that by March 1 , 2008 A and B side carriers are no longer required to support analog.


Roaming partners

To further extend service to its customers, Alltel uses roaming agreements with competing providers to provide reliable coast-to-coast service. Roaming agreements in the US are primarily with Verizon Wireless and Sprint Nextel , but other arrangements are in place with U.S. Cellular , AT&T Mobility (mostly for AMPS), Unicel , and other CDMA wireless providers. They also have agreements with most Canadian cellular providers, such as Telus and Bell Mobility . Since many of these roaming partners operate in the 800 MHz or 1900 MHz CDMA band, Alltel customers on national calling plans are required to use tri-mode (800 AMPS, 800 CDMA, 1900 CDMA) or dual band (800 CDMA, 1900 CDMA) handsets.

On May 9 , 2006 , Alltel and Sprint Nextel agreed on a new nationwide roaming partnership. (Press releases: Alltel ; Sprint )
Unlike Alltel's voice and 1xRTT roaming agreement with Verizon Wireless , the new reciprocal roaming agreement is for both voice and 1xEV-DO data roaming coverage. This agreement gives Alltel customers access to Sprint's voice, 1xRTT, and 1xEV-DO networks and gives Sprint customers access to Alltel's denser rural 1xEV-DO voice and data coverage. This agreement is the first of its kind between wireless carriers in the United States.

On June 7 , 2007 , Alltel announced that its customers can access the Internet and corporate networks through their data-card equipped laptops in the nation’s major metropolitan areas, at broadband speeds. Alltel’s roaming agreements give its customers access to wireless broadband service in the nation’s largest population centers, including New York , Chicago , Los Angeles , Boston , Philadelphia , and Washington D.C.


Network coverage

There are currently Alltel-owned and operated network in 35 State s; Alltel currently has roaming agreements in place to provide coverage in all 50 states including Puerto Rico and the U.S. Virgin Islands . Alltel also has agreements with cellular providers in Canada. Alltel's free night minutes start at 9:00pm, unless upgraded to a 7:00pm nights plan or add-on.

Alltel also now offers coverage plans for all of North America , the "North American Freedom" plans. With roaming agreements in Mexico and Canada. Note that "My Circle" and "Mobile to Mobile" calling only applies within the United States . Outside of the US it is considered part of the anytime minutes in a plan.


Handset and technical specifics



Commercials

Alltel is the first cell phone company to make fun of other major companies. It started out when Alltel used lookalikes of rival cell phone companies' primary advertising characters. After a little bit of trouble, they placed a message at the beginning of these commercials saying "THESE ARE LOOKALIKES". After that, Alltel started a series of commercials involving Chad, Alltel's spokesman (played by comedian , AT&T , T-Mobile , and Sprint . The parodied competitors take the forms of four stereotypical Geek s who are perpetually frustrated by their failures and less popularity, even going so far as to harass and threaten him, albeit with less than effective results. They drive the same van used in the movie "School of Rock"

The promotional campaign features this notice on television and the website: "Our lawyers would like to inform you some of the characters you see here are not associated with Alltel. They are look-alikes. The characters, not our lawyers." The first commercial has an Alltel representative named Chad welcoming the spokespeople of the other Top 5 wireless carriers ( introduced " My Faves " in the Fall of 2006.


New services

City ID

May 22, 2007, Alltel Press Release: Alltel announced that it will be the first carrier to introduce City ID, an enhanced caller ID feature that matches any incoming wireless call with the city and state where the incoming number is registered. The application will initially be available on the LGAX275, but will eventually be integrated with all new handsets operated by Alltel in the near future.

AskMeNow

On March 1, 2007 Alltel announced that they were the first U.S. carrier to offer AskMeNow across all handsets. The partnership provides customers, including those with smart phones, immediate access to the AskMeNow question-answer service.

My Circle

On April 21 , 2006 Alltel launched a unique program called "My Circle". My Circle is a free and optional feature for customers that subscribe to National/Greater Freedom calling plans starting at $59.99 and sign up for online account access. (Numbers can only be added and modified through the Alltel website.) A customer selects a maximum of 10 numbers on other U.S. Landline and Wireless Network s that they can call and not use up Airtime or pay additional charges. 900 Number s, Directory Assistance services, and a customer's own number or voice-mail access number are prohibited in My Circle . These calls must originate and end within the customer's calling area.

U Prepaid

On , Virgin Mobile or AT&T GoPhone . Features that make U Prepaid unique are that it allows the customer to customize their plan with text messaging and unlimited calls to a certain number. U Prepaid allows roaming on Sprint , Verizon , US Cellular , and other CDMA networks.


MERGERS AND ACQUISITIONS

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Western Wireless

On January 10 , 2005 , Alltel announced it would buy Western Wireless (primary operator of the Cellular One brand name) for $6 billion in a stock-and-cash transaction. The deal would bring in an additional 1.4 million domestic wireless customers bringing the company's total wireless customer base to 10 million in 33 states, making Alltel the fifth-largest wireless operator in the United States. The merger would also bring an additional 1.6 million international customers from Western Wireless' overseas wireless ventures. These ventures, however, are being sold. Since both companies operate on CDMA technology, no major network integration issues were expected. According to Alltel CEO Scott Ford, "probably much less than 10 percent" of Western Wireless' 4,000 workers would face job cuts. The merger closed in August 2005; the Cellular One brand name was sold to Dobson Cellular in December 2005.


U Prepaid

U Prepaid is prepaid service from Alltel Wireless. In June 2007 Simple Freedom Wireless announced that it would move its customers to Alltel U Prepaid accounts to create Alltel U Personalized Prepaid. In July 2007 the merger was complete. The service is sold at Wal-Mart and some Sam's Club stores. Some Simple Freedom customers in non-Alltel markets were migrated to Verizon Wireless prepay accounts in Summer 2006. New rate options and features are now available to Simple Freedom customers.http://www.simplefreedom.net/SimpleFreedom/uprepaid.html


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