FCC approves Verizon/Alltel merger

The Federal Communications Commission Tuesday ruled to approve Verizon Wireless' proposed $28.1 billion acquisition of Alltel, a move that will create the nation's largest wireless operator. The FCC agreed to the deal despite partial dissents from the five-member commission's two Democrats--its approval is also contingent on several minor conditions, including the requirement Verizon Wireless honor Alltel's existing roaming agreements for four years. The Justice Department signed off on the acquisition last week after Verizon agreed to sell assets in 22 states.
Also Tuesday: Alltel reported third quarter revenues of $2.5 billion, up 10 percent year-over-year, while posting losses of $55.2 million due primarily to increases in interest costs and depreciation and amortization expense following its November 2007 merger with an affiliate of TPG Capital and GS Capital Partners. Total net customer adds for Q3 exceeded the 335,000 mark. In addition, Alltel reported ARPU of $55.62--data ARPU was $8.99, up 42 percent year-over-year.

For more on the Verizon/Alltel deal:
- read this Wall Street Journal article

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