Wireless rivalry may intensify

The Verizon-Alltel deal could help spur wireless competition in smaller markets across the USA, some telecom analysts say. Alltel, based in Little Rock, has 13 million customers. Many live in smaller cities and rural areas where Verizon doesn't have a presence. Once Verizon enters those markets, competition with other national carriers such as AT&T and Sprint could heat up, says Roger Entner, a senior vice president at IAG Research. "Outside the top 100 markets, competition will increase," he predicts. That could result in better deals and more choices for consumers, Entner says. Alltel name to vanish once the deal closes as may the popular "My Circle" calling plan. The plan offers unlimited wireless calling to and from any five, 10 or 20 numbers in the USA, wireless or landline. Monthly fees start at $49.99. Since most consumers don't call more than a dozen numbers regularly, "it's a de facto unlimited calling plan," Entner says — one reason it's so popular. That said, the plan is not without hassles for Alltel, which has to pay roaming fees to carriers for any "circle" choice who isn't an Alltel customer. For that reason, Entner thinks Verizon will table the plan "because it just doesn't fit into Verizon's rate structure." Golvin agrees.
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