Why did CDMA fail in India
Great growth opportunities: The music is playing in US mobile communications
In addition to private financial investors, the larger competitors on the mobile communications market are also said to have expressed interest in Alltel. The mobile operator was particularly interesting for Verizon. Both companies are already partners. Verizon customers make calls on the Alltel network in areas where Verizon has not installed its own antennas. Both companies also use the same technology: the US CDMA standard.
For Verizon, however, it is a priority to first secure a majority in-house. The US group has so far only held 55 percent of its own mobile communications subsidiary Verizon Wireless. The rest is owned by the British company Vodafone. Attempts to buy the British out of the joint venture have so far failed. However, now that Vodafone has become heavily involved in India, the Americans are hoping for a new opportunity. For this, however, they need the necessary change and apparently cannot spend almost 30 billion dollars on the takeover of a US competitor at the same time.
Alltel is number five in the American market. Its approximately twelve million customers live mainly in the Midwest, the western states and the southern United States. Founded in 1943, the company has been offering wireless services since 1985 and parted with its fixed line business last year. With an annual turnover of 7.8 billion dollars most recently, Alltel generated a net profit of 1.1 billion dollars.
This means that the company is hardly strong enough to make the necessary investments for the modernization of the mobile communications networks on its own. The regulator, the Federal Communications Commission (FCC), will soon be auctioning off new spectra for broadband cellular networks. Using these wireless information superhighways, customers can then not only make phone calls, but also check their e-mails, surf the Internet, download music or watch their favorite TV show - all at top speed. The symbol of the new mobile communications age is Apple's iPhone, which will hit the American market in June and is said to be an all-rounder.
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