Verizon COO: Alltel Acquisition Not a 'Game-Changer'

Published on: 10th June 2008

NEW YORK -(Dow Jones)- Verizon Wireless's acquisition of Alltel Corp. isn't a "game-changer" that will throw the carrier off, said Verizon Communications President and Chief Operating Officer Dennis Strigl in a conference call Tuesday.

Alltel represents a good fit for Verizon Wireless, and Strigl said Verizon has had an eye on the rural carrier for years.

Verizon Wireless plans to close the deal by the end of the year, an ambitious goal since deals can typically take six months before they can close. Strigl said it is a realistic goal, and cited AT&T's closing of Dobson Communications, and the original deal to take Alltel private.

"We think it's doable," he said. "The precedent has been set."

The company has the potential to improve the metrics at Alltel. Strigl said there is the opportunity to lower customer turnover by 40 basis points and increase average monthly data revenue by $3 - Verizon Wireless's current levels - over the next two years.

"You won't see it overnight," he said. "But it's realistic to think about the transition in those two areas and others in the course of two years."

On the Apple iPhone, Strigl noted Verizon Wireless has benefited from higher interest and sales in smartphones. The company has sold more smartphones since the iPhone debuted last June.

On FiOS, Strigl addressed concerns that Verizon was building in AT&T's geographical territory, saying the company plans to stay within its own territory.

"We have enough to do within our own franchise footprint," he said. "We don't need to seek out those opportunities."

-By Roger Cheng, Dow Jones Newswires; 201-938-2020; roger.cheng@dowjones.com

(END) Dow Jones Newswires

 

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