Verizon could become dominant in N.D.

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Verizon Wireless has summoned the wizard of all wizards and announced its pending takeover of Alltel Corp.

Wizard! Can you hear me now, Chad?

The $28.1 billion agreement to purchase Alltel, known for its cheeky commercials depicting representatives of other networks using a wizard or other antics to compete with Chad, the face of the company, could be completed by the end of the year, representatives say.

Funny commercials aside, the deal also could mean Verizon holds a monopoly over cell phone service in North Dakota.

"I can't imagine that one company controls that and basically has a monopoly in a whole state," said Public Service Commissioner Tony Clark.

Clark said Verizon could divest some of its area, adding that the PSCis going to be vocal about the merger.

But that brings about a whole new model for cell phone service in North Dakota. To date, the state has seen more and more investment in cell phone towers in rural areas, mostly instigated by Alltel. And with Alltel's investments came competitor Verizon.

"If you have one major player and they don't have the incentive to compete, that may be a problem,"Clark said. "Alltel was really a pioneer in rural cell phone areas. They were traditionally committed to taking these federal dollars and pressing into rural areas."

Further, Verizon actually only owns 50 percent of the network in the state; the other 50 percent is owned by rural cooperatives, but it's all managed and marketed as Verizon service.

The partnership may come into play as Verizon engulfs Alltel, which owns 100 percent of its North Dakota network. This could make divesting part of the North Dakota network a little more complicated.

Clark's other concerns included long-term consumer contracts with Alltel; he said the PSCwill try to advocate allowing those users to cut the contracts early.

"Does Verizon take over the Alltel network, then take over the 50 percent ownership with the co-ops?"Clark asked.

Karen Smith, public relations manager for the great plains region with Verizon Wireless, said those questions will most likely be addressed as the company goes through the federal regulatory process.

Alltel serves more than 13 million customers in 34 states; Verizon serves 67.2 million customers. Smith said the two will continue to be market competitors until the merger is complete, meaning the antics of Chad, the wizard and the other networks may continue for the time being.

(Reach reporter Crystal R. Reid at 250-8261 or at crystal.reid@bismarcktribune.com.)

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