October 31, 2008 -- Kansas Attorney General Steve Six filed suit yesterday with the United States Department of Justice and the Attorneys General for the states of Alabama, California, Iowa, Minnesota, North Dakota and South Dakota to block Verizon Wireless's acquisition of Alltel Corporation. A proposed settlement was filed which requires Verizon to divest assets in 100 cellular market areas in twenty-two (22) states.
In Kansas, the divestiture will cover six cellular market areas that make up all of western Kansas. The acquisition would have substantially decreased competition of mobile wireless communications services in western Kansas, potentially resulting in higher prices, lower quality and quantity of service, and reduced network investments.
"Rural areas of Kansas are all ready affected by variable cell phone coverage and lack of options for service. These divestitures are necessary to preserve competition in the wireless cellular market," Six said.
Verizon is the second largest mobile wireless telecommunications services provider in the United States, serving more than 70 million subscribers in 49 states. Alltel is the fifth largest provider, serving approximately 13 million subscribers in 35 states. Verizon and Alltel are each other's closest competitor for service coverage throughout western Kansas.
The Office of the Attorney General has been investigating this transaction since June of this year in conjunction with the U.S. Department of Justice and several other state Attorneys General.
To report suspected violations of state antitrust laws, contact the Office of the Attorney General at (800) 432-2310 or visit the agency's website at http://www.ksag.org/.