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Verizon to drop some Nebraska customers as part of Alltel deal

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By MATT OLBERDING / Lincoln Journal Star

Saturday, Jan 10, 2009 - 11:39:07 am CST

Alltel customers in Nebraska officially became Verizon Wireless customers Friday. But some Verizon Wireless customers officially got put in limbo.

Verizon announced a 10-county area in eastern Nebraska — Boone, Butler, Colfax, Dodge, Merrick, Nance, Platte, Polk, Saunders and Washington — is one of four areas where it is divesting its own customers and keeping Alltel’s.

As part of federal approval for its $28.1 billion purchase of Alltel, Verizon was required to divest assets and customers in more than 100 markets where its service overlaps that of Alltel.

Related Link(s):


12.14.08: Justice Department: Verizon must sell some assets in Nebraska
Map: Counties where Verizon is divesting customers
What happened?

Verizon Wireless’s $28.1 billion acquisition of Alltel became official Friday, making it the largest wireless carrier in the U.S. and Nebraska.

What does it mean?

For now, not much. Alltel customers will continue under the Alltel brand for several months. As part of a regulatory requirement, Verizon is divesting about 2.1 million customers, mostly Alltel subscribers it is acquiring. In four markets, including a 10-county area mostly north and west of Lincoln, it will divest current Verizon customers. The customers will be put into a management trust and will continue with Verizon Wireless service until a buyer can be found.

What’s next?

Verizon said it will begin rebranding Alltel markets in phases, starting in the second quarter and finishing by the third quarter. Alltel customers’ service plans, prices and features will remain the same throughout the transition, and they will be notified by mail about any changes that may impact their service in the future. Verizon said any decisions about job cuts or retail store closures will be made after the transition is complete.

That means about 2.1 million customers nationwide will get a cell company other than Alltel or Verizon.

Verizon would not say how many Nebraska customers are included in that number.

Verizon spokeswoman Karen Smith did not give specifics about why the company chose to drop Verizon subscribers in Nebraska. She said the decision was based on “the investments made in the market and what we thought was the best business decision going forward.”

But she noted Verizon Wireless has no retail stores in the 10-county area, while Alltel does.

And she said Fremont would be most affected by the divestiture.

Wireless World in Fremont is listed as an authorized seller of Verizon Wireless. A person who answered the phone there said the store wasn’t allowed to comment. Smith said Wireless World and any other authorized sellers in the affected area would continue to serve customers put in the trust.

The divested customers will see no change for the near-term. Verizon said it has placed licenses and assets for the markets to be divested in a management trust, which will continue to operate the markets under their current brands until buyers can be found — meaning customers in the 10-county area will remain Verizon Wireless customers for the foreseeable future.

Divested customers are bound by the terms of their current contracts, Smith said. But after those expire, nothing would prevent them from signing a new contract with Verizon Wireless.

For existing Alltel customers, nothing will change for a few months.

Verizon said the company will continue to use the Alltel brand for the next several months as it works to integrate networks, convert billing systems and upgrade high-speed wireless broadband service.

Alltel customers who are being retained will receive a letter during the next few weeks providing details about the purchase.

Verizon said Alltel customers do not need to take any action now. Customers’ current service plans, prices and features will remain the same throughout the transition, and Alltel customers will be notified, by mail, about any upcoming changes.

Because Verizon and Alltel use the same technology platform, most customers will be able to use their phones after the transition, the company said.

Verizon Wireless plans to re-brand Alltel operations in the retained markets in phases, beginning in the second quarter and continuing through the third quarter of 2009, as billing conversions are completed throughout the country. During the transition, Alltel-branded stores will remain open to serve customers.

The company would wait to determine whether to close any retail stores until after the integration is complete, Smith said.

According to the companies’ Web sites, there are five Alltel stores and two Verizon stores in Lincoln.

Alltel employees below the executive level also will keep their jobs for now. Verizon will make decisions on staffing levels later.

Smith said more than 400 people work at the Verizon Wireless customer service center in Lincoln, and the company is still hiring as it works toward its goal of about 800 employees. Combined, Verizon and Alltel have about 1,000 employees in Nebraska, she said.

With the acquisition of Alltel, Verizon Wireless becomes the largest wireless carrier in the country, with about 83.7 million subscribers before the divestitures.

It will be by far the largest wireless carrier in Nebraska, as Alltel and Verizon ranked first and second for market share in the state.

Reach Matt Olberding at 473-2647 or molberding@journalstar.com.


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hmm. wrote on January 9, 2009 12:14 pm:
" i wonder how much longer it will be before the phone companies are forced to break up again? "
whatever wrote on January 9, 2009 12:31 pm:
" Well here we go again, more consolidation, and less customer service. Outside of town the service will be even worse than it is now! YEA!

Verizon, why not surprise us and actually IMPROVE the service? "
JB wrote on January 9, 2009 12:54 pm:
" Are they going to divest the Alltel TV commercials too? "
To Whatever wrote on January 9, 2009 12:57 pm:
" I had a terrible time with Alltel's customer service. I've had my Verizon service now for over a year and every issue I've had, I was able to resolve it usually within a matter of minutes on the phone. I think Verizon's take on customer service will be significantly better than what Alltel offered previously. "
John wrote on January 9, 2009 1:04 pm:
" I remember when the Federal Government split up ATT into more the a half dozen smaller phone companies in order to creat more competition. Now most of the phone companies have merged into larger ones and creating less competition. "
Too Big to Fail wrote on January 9, 2009 1:10 pm:
" Is this strategy working? Are we not learning that it is not in the best interest of all of us to let companies get this large? Next up, a buyout for the phone companies because they will be TOO BIG TO FAIL! "
JCB wrote on January 9, 2009 1:10 pm:
" Verizon is rated the best cell phone service and Alltel the best where it is availible. Since they use the same technolgy there should not be any problems with the phones. "
Tammy wrote on January 9, 2009 1:12 pm:
" I'm not sure why you think your service will be worse. I have Verizon, and I have no problems with out of town service. Went to Rapid City SD last year, took the scenic route, and even in the middle of ranch country out in Western NE I never lost service. Person with me had AT&T and lost service the second we left the interstate (and didn't have service ON the Interstate in parts of SD). I have no complaints about Verizons coverage or service. "
can we change wrote on January 9, 2009 1:16 pm:
" If we have a contract with alltel and don't want to continue with Verizon, does anyone know whether we can get out without any penalty? "
Yea Right wrote on January 9, 2009 1:20 pm:
" Alltel employees below the executive level will also keep their jobs for now. Verizon said it will make decisions on staffing levels for the merger company later

So can they take this to the bank? Yea Right, they will elimanate postions just as fast is alltel did when they took over. I just hope the CEO's can live with themselves, They are just a bunch of greedy people. "
Ryman wrote on January 9, 2009 1:27 pm:
" Does anyone know if/when Verizon customers can buy Alltel cell phones? If you do, please post back. "
Ryan wrote on January 9, 2009 1:31 pm:
" Hey "whatever" - I changed to Verizon from Alltel 2 years ago and the same day I did my service improved 10 fold. I live in the country and was amazed at how much better the service was - clearer sound, no dropped calls, etc. Believe me, even with it being a bigger company now with more customers, Verizon has it already figured out and you probably will not have any problems to contact customer service about. "
Alltel was... wrote on January 9, 2009 1:38 pm:
" the worst phone company ever. Verizon is 100 times better. It was unbelievable how bad Alltel was, their customer service made me want to scream. I have yet to have one problem with Verizon for the past 4 years. "
Alan wrote on January 9, 2009 2:13 pm:
" I have had Verzion service for over 5 years now I can say that I have had about 10 or less dropped calls in that time. All of them have been when I was in a very rural area. Whatever…make sure you know what you are talking about before you comment. "
saunders county wrote on January 9, 2009 2:24 pm:
" not so sure I like a merge! What the heck is going to happen for our service? Thank you cell service! "
Im with can we change wrote on January 9, 2009 2:25 pm:
" Anyone heard if Alltel customers can opt-out of Verizon? I didn't sign a contract with Verizon and I don't want to have service through them... Why should I have to pay a penalty to get out of (a now defunct) Alltel contract? "
Happy customer wrote on January 9, 2009 2:30 pm:
" I've had Alltel for 10 years now and have never had a bad experience including calls into customer service. I seem to be the exception from what I hear from a lot of people though. Hopefully it's a smooth transition. "
mitchy_v wrote on January 9, 2009 2:36 pm:
" Per Alltel site.
Will I pay an early termination fee if I don't want Verizon Wireless service and switch to another carrier?
Since Alltel customer agreements will remain in effect for the term specified, customers who choose to cancel their agreement and move to another carrier will pay an ETF. "
Why wrote on January 9, 2009 2:40 pm:
" Why would anyone think that your service would be worse with a merge? That is ridiculous! With the merge you get that many more cell towers, which would mean less dropped calls. I just hope that they keep the "My Circle" I hardly have to use any minutes with that. "
nice try wrote on January 9, 2009 2:42 pm:
" When a company buys out a contract, that contract is still valid. Sorry folks, but unless Verizon OPTS to let you out, you are still stuck with your contract unless you want to pay the penalt. "
another happy one wrote on January 9, 2009 3:06 pm:
" I also have not had any problems with Alltel. My only fear is Verizon getting rid of My Circle. Will definitely have to watch the minutes if they do... "
GoodBad wrote on January 9, 2009 3:32 pm:
" There are a lot of good things about this merger and there are some bad. I actually moved to Polk county recently so I don't know what that means for me but I am not all that worried about it. I thought Alltel's service has been pretty good I have no complaints. I visit many rural area's with my Alltel service and have not had many problems so I am excited to be adding some more towers. I am a little concerned with having Verizon and changing my plan I am about 99.9% sure that whatever contract you have now you will be grandfatherd into untill you change it. Like I said good and bad things. "
Ryan wrote on January 9, 2009 3:35 pm:
" The penalty to stop service with Verizon is less than it is/was with Alltel. Another good thing about Verizon. "
bleacher bum wrote on January 9, 2009 3:39 pm:
" I wonder.... had I dropped Verizon, I would have paid an early termination fee. Since they are dropping some customers who had them, do those customers get paid and ETF? "
Angela wrote on January 9, 2009 4:04 pm:
" I have been with Alltel for going on 6 years now and I have had multiple problems with both my phones and with customer service. I am anxious to see what Verizon has in store for us but at the same time...I do like my plan that I have with Alltel. I hope that Verizon continues with the same plan that I have...or something better would be nice as well. I just don't wany a messy transition, that would not be a good way to start things off for Verizon. "
jr wrote on January 9, 2009 4:51 pm:
" The verizon coverage is better because the verizon customers can peer on Alltel towers as well as Us Cellular towers.. as well as Vaeiro towers.

They can't however peer with At&t, Sprint, Nextel etc. Since it's a completely different technology.

Coverage outside of town is all about peering agreements between the companies. That's the key factor in rural coverage. "
I heard wrote on January 9, 2009 5:30 pm:
" they were going to give nebraska to cellular one. Also heard they were going to add 5 thousand jobs in lincoln to handle all the extra phones out of state. "
yk wrote on January 9, 2009 5:48 pm:
" I LOVE Alltel, I have had them for about 12 years now and never have any problems with service anywhere--hopefully that stays the same maybe we will have more phones to choose from!!! Alltel customer service is awesome they are always so kind and helpful--you get crappy service if you are rude to them--so just be nice to all customer service reps and you won't have a problem!!!!!! "
CREA wrote on January 9, 2009 5:50 pm:
" We left Verizon for Alltel, nothing to do with cell reception, everything to do with customer service and the fact they added new things to bill us for every month. It got old. Now I will have to deal with it again...oh joy. "
Allan Love Jr wrote on January 9, 2009 5:52 pm:
" As these company's buy each other out/Merge. We as the customer must pay 10 times more in our monthly bills to repay back these company's the money that they have already spent on these Merger/Buyouts. "
VZW Emp wrote on January 9, 2009 5:53 pm:
" 1. You will hear from VZW when you will be converted from Alltel to VZW. Until that time you should continue contacting Alltel for service and phone.

2. When some customers are divested into a separate trust to prevent a monopoly you will still have service, but VZW cannot ask you to become a customer.

3. If you break your contract with Alltel then you will have to pay their early termination fee. If you are migrating into becoming a VZW customer we will contact you stating when the transition will take place. Chances are your Alltel phone will work just fine.

4. If you are an Alltel customer nothing will change during the transition. You will keep My Circle. VZW purchased Alltel as well as the contracts. If you break it by cancelling you will pay for breaking it. "
sick of alltel wrote on January 9, 2009 6:21 pm:
" Honestly, anyone has to better than Alltel. We got a new phone in October, and changed our plan to something that was going to "work better" for us. My next bill was over $1000. We didn't use our phones any more than the previous month. It was the biggest headache ever. They also wanted us to try the wireless internet card with our new phone, I told them that we had internet and was happy with it, but she just told us that we should try it. She failed to tell us that after 15 days, if you didn't like it, you had to bring it back and cancel or you would automatically be enrolled in a two year contract with the wireless internet. This also happened to a friend of ours too. After numerous calls and visits to the Alltel store, I got a credit of over $800 and I got the two year contract for the wireless internet taken off. They have terrible customer service and they do not properly train their employees before turning them loose on their customers. I'm looking forward to Verizon. Good Bye Alltel, won't miss you at all!!! "
Sylvester wrote on January 9, 2009 8:06 pm:
" Getting bought is the best thing that can happen to Alltel. They have the worst customer service of any company I've ever dealt with. I finally switched to AT&T. "
VZW Emp wrote on January 9, 2009 8:33 pm:
" Um, we at VZW also have contracts which in turn makes your phones much cheaper since we sell wireless phone service and lose money selling you a phone. Same goes for the BBA (broadband access for internet) as well. What did you think? You could try the trial for 15 days & then what then? Never cancel or give the equipment back? Those cards are $300 each. All you have to do is call and say you're canceling within the trial.

What was this supposed better plan? Did you read the paperwork? Did you listen to the recording you dialed when you activated your phone or the broadband card? Did you monitor how much you used to make sure you were within the bounds of your plan? "
DMB wrote on January 9, 2009 9:50 pm:
" I switched to Verizon, because I can see their call center from my deck. Every call I tried was dropped, including the call to the service center. They were very nice and understanding to work with, but the reception in the Highlanads is not good at all. Maybe now it will improve. "
Harry the Antenna Guy wrote on January 9, 2009 11:13 pm:
" I am amazed that Verizon was stupid enough to bailout the private investment firm for a several million dollar profit less than two years after they took Alltel private. I can't stand private investment firms making a quick buck and ripping off the customer or the government in the process. The only good thing about this is that the government won't have to bailout Alltel like they had to bailout the private investment firm that owns Chrysler. Chrysler should be force to bankruptcy so that the greedy private investment firms lose their 'shirts'. "
Yup wrote on January 9, 2009 11:13 pm:
" We had Cellular One and had great service. Alltel bought out Cellular One and the day they switched, our phone wouldn't work. Finally after weeks of trying whatever the service dept told us to do, I took the phone in to their office and they tried to push a code through. They finally got it to work sort of, but since that day we've had a severe echo back whenever we talk. By the way, the phone was brand new two months before they switched. I read that some phones won't be able to download Verizons software. Since my phone is still the old Cellular One phone I suppose ours will be one that won't work. I am not under contract with Alltel, our old contract expired and they kept billing us our old rate. I won't sign another contract, so they will have to supply me with a cheap phone that works under their plan. I also expect them to not change my bill or charge me more. "
alltel man wrote on January 10, 2009 8:36 am:
" Alltel is the best cell phone co in nebraska and has the best coverage hands down. Alltel does not bounce off other towers in the state of nebraska it all their own tower so verizon people should get better coverage with the buy out!! "
nemo wrote on January 10, 2009 9:50 am:
" We had cell one for years before they were merged with alltel. Alltel couldn't keep some of those cell one customers so we ended up with us cell, had so many problems with us cellular the first month( we couldn't use phones outside of Lincoln at all). I'm thinking those dropped verizon customers will end up with us cellular. Good luck. "
Poor Customer Relations wrote on January 10, 2009 10:09 am:
" Okay Verizon this is extremely poor customer relations. You know what you are going to do with us Alltel customers, which services are you discontinuing, etc. I am very upset over this as I purchased a contract in good faith for a predetermined amount with predetermined plan. Several of us family members in neighorboring states could not afford the "my circle" feature but all took Alltel. Alltel to Alltel is FREE....now I am Verizon because of the switch. I have called for two months asking if after the switch I can still call them for free. I have "we don't know" comments. So I could be racking up minutes usage and have halted using my phone until I know. GOOD CUSTOMER RELATIONS would have allowed for a few questions to be answered PRIOR to the switch.

Also you can't get any of your phone information on minutes used etc. this entire week. All the quick dial numbers have been disconnected.

So VERIZON you are going bye bye because it shows you will not treat Alltel customers as your own. Plus Alltel is still selling their plans knowing they are null an void with a "letter forthcoming." To me Alltel customers can sue for breach of contract, you have not fulfilled your obligation. I already investigated prices. Verizon is $40/month more for the same thing I am getting through Alltel. I have had no problems with Alltel and have had them for 10 plus years. My complaint is the way all this was handled.

Would like to see an attorney's opinion on this breach of contract. "
Karen Smith wrote on January 10, 2009 10:15 am:
" Wireless World in Fremont, Neb. is an authorized retailer for Verizon Wireless and will remain open for business while the market is managed by the management trust company. Verizon Wireless customers in the area should still go to the store for service. "
Comparison wrote on January 10, 2009 10:36 am:
" I just visted both websites. $84.99, Alltel with 10 people designated as free no matter their service, unlimited text messages and 1000 anytime, nights start at 7 pm. $119 Verison, 700 minutes, unlimited text, nights start at 9 pm,no my circle. HUMMMM us Alltel customers are gonna get it!!! You know Verizon will NOT lower their rates so Alltel customers, hold on to a huge increase and we will be STUCK until our contract expires. That is against the law as I signed a contract for $59 and it will go up to according to their site, $99 and no my circle which I use extensively. So to get unlimited minutes I am looking at $135, if we have 2 phones it is $249/month. WOW !!! guess that is the time I go back to a landline for $49 at TWC. "
Rudy wrote on January 13, 2009 8:00 am:
" I have had Verizon cell service in Webster county (a long way west and south of the 10 county area Verizon dropped) for 5 years and my signal is great. Also, every single time I call in to Verizon for customer service, I get my issue resolved immediately - and with someone who speaks English clearly! I love Verizon. "

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