Verizon Wireless Touts Advantages to Subscribers if It Buys RCC

February 25, 2008 by Howard Buskirk|Miscellaneous

Verizon Wireless struck back at opponents of the company’s proposed acquisition of Rural Cellular Corp. (CD Feb 13 p5). The carrier told the FCC that the $2.67 billion deal would mean “superior service quality, a wider variety of handsets, seamless national coverage, improved customer care” and “a broad menu of service plans” for subscribers converted to Verizon’s network.

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RCC subscribers would also benefit from high-speed wireless broadband not available to them now, the carrier said. The deal would also expand Verizon Wireless service to 30 additional cellular market areas, “providing customers with more continuous coverage throughout the United States,” Verizon Wireless told the commission.

Documents opposing the merger were filed with the FCC by Consumers Union, the Consumer Federation of America, Free Press, the U.S. Public Interest Research Group and the Vermont Department of Public Service. Verizon Wireless said objections that the deal would mean the closing of RCC’s GSM network to be overlaid with a CDMA network were “wildly overstated.”

Verizon said it would “simply be stepping into the shoes of RCC” and has committed to the sale of the GSM network in most of Vermont to AT&T. In the few places it would retain the GSM network, Verizon Wireless said it will keep providing service “until another GSM carrier is operational” and will grant AT&T access to towers in the area.

RCC would become a subsidiary of AirTouch Cellular and an indirect subsidiary of Verizon Wireless under the deal, announced in July. Verizon Wireless plans to build an overlay CDMA network and convert RCC’s GSM customers. The carrier has also committed to selling AT&T its GSM networks where Verizon’s and RCC’s networks overlap.