Sprint and Alltel Announce 10-Year Roaming-Service Deal

By AMOL SHARMA


May 9, 2006; Page B4

http://online.wsj.com/article/SB114714126026947459.html?mod=technology_main_whats_news


Sprint Nextel Corp. and Alltel Corp. announced a 10-year roaming-service 
deal that would expand their coverage areas and reduce some rates for 
subscribers.

Under the agreement, to take effect July 1, Sprint and Alltel customers 
will get reduced roaming rates when they go beyond their coverage area and 
are picked up on the other company's network. The deal, unveiled today, 
will cover cellphone calls as well as new wireless Internet services.

The roaming agreement could give Sprint an edge over competitor Verizon 
Wireless, a joint venture of Verizon Communications Inc. and Vodafone Group 
PLC, in the race to extend wireless broadband access to more American 
consumers. Those services allow consumers to access the Internet wirelessly 
through a card they insert into their laptops. The deal is Sprint's first 
major roaming agreement for broadband service.

Sprint says its broadband-access service currently covers more than 150 
million consumers in 220 communities and will be available to 190 million 
consumers by year end. Verizon Wireless has made its broadband service 
available to 154 million consumers, a spokesman said.

Under the deal with Alltel, Sprint's customers also will get access to 
Alltel's data services, such as text messaging, in areas where Sprint 
doesn't make those services available.

For Alltel, the deal gives its customers the flexibility to roam onto the 
network of a third major carrier. The company has a roaming deal with 
Verizon Wireless through 2010 and recently extended its agreement with 
Cingular Wireless, a joint venture of AT&T Inc. and BellSouth Corp., to 
last through 2012. Neither of those deals covers data or Internet-access 
services.

Telecommunications industry analysts consider Alltel a valuable acquisition 
target for Verizon Wireless -- and possibly Sprint -- because it uses the 
same wireless technology, CDMA, to deliver signals to customers.

Alltel has basic roaming agreements with other carriers, so that its 
consumers always can get service, but those arrangements aren't at reduced 
rates.


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu



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