I understand the Verizon take over of Alltel was considered "hostile" and I also hear that US Cellular and Alltel used to piggyback a lot on towers. Now that Alltel will be gone, Verizon may end leasing of any towers to US Cellular. If that were to happen, then what becomes of US Cellular? All stocks are down but US Cellular really plummeted this year, and I wonder if this is why. Anyone know?

Alltel sold themselves to Verizon for $28.1 billion. It wasn't hostile.

Wirelessly posted (8100 Strike 2)

US who?

Oh just the best cell phone company EVER. Seriously in Oklahoma US Cellular is doing quite good for themeselves. I haven't heard that they have been hurt, but I guess thats why they are remaking there image.

They have had by far the best coverage in eastern NC and they seem to have these niche markets. But I'm concerned that they won't be able to compete in the near future, their stock is way down, but I've seen nothing written about it, even in financial sections.

John

Lol.

good question

US Cellular has built a very nice business by providing coverage in the rural "gaps" between major markets, places that the "big boys" won't touch. It would be a shame to see them go.

I would guess that there is some sort of language in the buyout agreement regarding tower leases, it is possible that these were locked in for a period of time for the current rate as part of the agreement-although I don't know that for sure by any stretch of the imagination. I just wanted to provide a counterpoint to the worst case scenarios discussed so far.

Wirelessly posted

Another thing about USCC is they are building more and more towers every month its seeming like. They tell us on our bill where they do this at. So even if sometime in the near future verizon stops the tower sharing then I don't see them stuggling to much.

I think the relationship will still be good since Alltel didn't have towers where US Cellular was and visa versa. This means Verizon will still need the arrangement to maximize their coverage.