FCC approves $24.7 billion Alltel buyout

FCC APPROVES $24.7 BILLION ALLTEL BUYOUT
[SOURCE: Associated Press, AUTHOR: John Dunbar]
The Federal Communications Commission on Friday approved a $24.7 billion buyout of Alltel Corp., the nation's fifth-largest wireless carrier, to a private investment group.
The agency approved the transfer of licenses held by Alltel to Atlantis Holdings LLC, a holding company consisting of TPG Capital, formerly Texas Pacific Group, and GS Capital Partners, a subsidiary of Goldman Sachs. Little Rock, Ark.-based Alltel provides wireless voice and data services to more than 12 million customers in 36 states. The company specializes in serving rural areas. In announcing the approval, the agency said the transaction would not hurt competition in the mobile telephone market. It also noted the transaction will provide Alltel with fresh capital which will lead to deployment of advanced wireless services in rural areas.
http://www.newsobserver.com/1566/story/750871.html

* FCC's Martin Plan Would Approve Alltel, AT&T Deals
A proposal by Federal Communications Commission Chairman Kevin Martin would give the green light to two mergers awaiting agency approval in exchange for the companies involved agreeing to substantial reform of the Universal Service Fund. Alltel's $27.5 billion sale to two private-equity groups and AT&T's $2.8 billion acquisition of Dobson Communications would both be approved by the commission. But in order to win FCC approval, the companies would have to agree to cap the amount of money they receive from the Universal Service Fund to subsidize the cost of offering cellular service to rural parts of the country. Alltel is the largest recipient of money from the Universal Service Fund and had previously been opposed to a cap on how much it could receive.
http://money.cnn.com//news/newsfeeds/articles/djf500/200710261619DOWJONE...

* FCC press release
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-277647A1.doc

* Order:
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-185A1.doc

* Commissioner Copps: "While I cannot be pleased at the current levels of concentration in the wireless industry, I do not see that this transaction makes the situation any worse. I do, however, renew my plea ... that the agency conduct a general rulemaking to assess the public interest consequences of private equity firms holding Commission licenses. I dissent, however, to the portion of the order that imposes a cap on the high-cost universal service support the company receives as a competitive eligible telecommunications carrier .... piecemeal Universal Service Fund reform is actually counter-productive to the far more important goal of rationally implementing comprehensive reform."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-185A2.doc

* Commissioner Adelstein: "The Order curiously requires that ALLTEL immediately meet E-911 Public Safety Answering Point (PSAP)-level compliance as a condition precedent for exemption from the freeze on ALLTEL's level of universal service support. This "Jack in the Box" surprise requirement that suddenly sprung up appears as an illogical afterthought."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-185A3.doc

* Commissioner McDowell: "I am pleased to support the transfer of control of ALLTEL Corporation given the significant benefits to wireless consumers and the citizens in Arkansas. However, I am concerned regarding the "voluntary" conditions agreed to by the applicants. Imposing conditions pertaining to high cost universal service support and Enhanced 911 (E911) deployment are not merger specific, are unnecessary at this time, and may prejudice ongoing Commission deliberations."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-185A4.doc