Verizon & Alltel Merger

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History of Verizon Verizon Communications, Inc. was formed on June 30, 2000 with the merger of Bell Atlantic Corporation and GTE Corporation, in New York City and incorporated in Delaware. On July 3, 2000 Verizon began trading on the New York Stock Exchange (NYSE) under the VZ symbol. On March 10, 2010 they began trading on the National Association of Securities Dealers Automated Quotations (NASDAQ). The mergers that formed Verizon had roots going back to the beginning of the telephone business in the late nineteenth century. With the regulation by the government and the signing of the Telecommunications Act on February 8, 1996, Verizon saw promise of a new competitive marketplace. In 2004 Verizon was added to the Dow Jones Industrial…show more content…
Alltel went through numerous mergers thereafter. In 1993 Alltel acquired GTE’s Georgia service area. In 1999 Alltel merged with Standard Group, Inc. and Aliant Communications. VALOR Telecom was formed with the acquisition of telephone assets from GTE Southwest Corporation in 2000. Verizon sold approximately 600,000 local customer lines in Kentucky to Alltel in 2002. Alltel and VALOR merged their landline business in 2005 and by 2006 they formed Windstream Corporation. In November 2008 Verizon Wireless received final approval from the FCC for the acquisition of Alltel and by January 2009 the merger was completed, thereby making Verizon Wireless the leading wireless provider in the United States. Prior to Verizon’s acquisition, Alltel operated its network in thirty-four states, with a wireless coverage that was the largest in the United States by area. Alltel’s focus was on small to medium sized cities. With roaming agreements with Verizon and Sprint, Alltel provided wireless services to residential and business customers in all fifty states. This allowed Alltel to give their customers access to nationwide service while providing coverage in rural areas. Economic Setting The telecommunications industry is one of the most profitable and rapidly growing industries since 2005. The four major companies are AT&T, Verizon, Sprint Nextel, and

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