Fergie's Tech Blog

Verizon, Alltel Seek Midwest

Via Red Herring.

With wireless spectrum in the United States at a premium, smaller mobile properties such as Midwest Wireless are expected to fetch top dollar, and Verizon Wireless and Alltel are reportedly the leading potential buyers.

With the next major auction of spectrum not scheduled for another three years, the major players in the wireless market are looking at independent operators such as Midwest to add spectrum, subscribers, and footprint.

“The game is simple at this point,” said Joe Nordgaard, managing director of Spectral Advantage, a strategic wireless consulting firm. “The major operators need as much spectrum and as large a footprint as they can get. They need that to provide more sophisticated services now and in the future.”

Verizon is a likely candidate because Midwest’s network supports code division multiple access (CDMA) technology, as does Verizon’s. Also, Midwest’s coverage area, based in Mankato, Minnesota, includes Wisconsin, Minnesota, and Iowa, complementing Verizon’s footprint.

posted by Fergie @ 9/26/2005 08:49:00 AM