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Feb. 23, 2009

The Verizon Alltel Management Trust is a subsidiary of Verizon Wireless that came into being when the industry’s new number one player was forced to divest wireless assets in 105 markets as a condition of its acquisition of Alltel Communications L.L.C. last December.

The trust is charged with running the day-to-day operations for 2.2 million subscribers in those markets, keeping such assets until a new owner can be found, said Paul Bowersock, senior sales and operations leader at Alltel.

He added “the trust’s main goal until these markets are sold and transitioned to a new owner is to ensure the competitive viability, so our goal is to grow revenues as well as maintain and add wireless subscribers."

The wireless carrier plans to grow its revenues at the same pace as in 2008, and even improve upon last year's metrics.

As the 2,500 employees at Alltel promote the brand and its strengths, Verizon Wireless is their main competition in such markets.

“Technically, we’re Verizon Wireless employees,” Bowersock explained, since Alltel no longer exists. Most of the employees were formerly with Alltel. Because these markets will be sold eventually, it’s in the employees’ best interests to keep the network operating at top peak efficiency and keep existing customers happy with the service.

Because no one knows just how long it will take to find a new owner for the properties and to transition them, Bowersock said the trust is continuing to advertise and is also on track with new wireless handset offers and network upgrades.

He added “we’re projecting well into 2009 and through the first part of next year. He also noted that handset launches take months to get into the production pipeline."

Alltel has about 150 employees in Little Rock Arkansas, with most employees working in the cities of the wireless properties to be divested. Wireless customers of the trust will still get an Alltel-branded experience, whether through an Alltel-branded bill, or in retail outlets or online.

Interestingly, Alltel customers are also bound by the conditions of their agreements, so customers who would want to churn to Verizon Wireless would still be required to pay early termination fees. AT&T Mobility and private-equity firms have been mentioned as possible buyers for the assets.

The Department of Justice determined that in all 105 markets, Alltel and Verizon had the majority of market share, but some divested markets have additional competition, according to Alltel spokesman Wes Brown.

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Source: Verizon Wireless.