Leap against Verizon buy

12 Aug 2008

The US cellular operator Leap Wireless International has called on the US telecoms regulator, the Federal Communications Commission (FCC), to block Verizon Wireless’ proposed acquisition of smaller rival Alltel. Leap wants to see the USD28.1 billion deal turned down because it would harm competition and make it more difficult to forge roaming agreements, Reuters reports. Leap currently has roaming deals with both Verizon Wireless and Alltel but fears that its existing agreements would not be honoured by the enlarged company. Verizon has already offered to divest some of Alltel’s assets to comply with regulatory requirements on competition. It expects the deal to win approval and to be completed by the end of this year.