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Alltel Wireless Introduces One-Year Contracts; Handset Prices to Remain the Same
      06/04/09 09:38 AM

Alltel Wireless announced today that effective June 5, 1-year postpaid service contracts will replace the industry-standard 2-year service contract for Alltel's new and renewing customers. In addition, beginning tomorrow, Alltel will be the only wireless carrier to offer 2-year postpaid handset pricing to those signing 1-year contracts. Here is more info from today's announcement:

?Wireless customers have been waiting for an option like this for a long time,? said Paul Bowersock, Senior Sales & Operations Leader for the Alltel Divestiture Trust. ?With a 1-year contract option, customers can take greater control over their wireless experience, having the flexibility to choose their contract length and the latest innovative handsets at the most competitive price possible.?

"The 1-year contract option is available only to customers in the 91 cellular market areas (CMAs) that Verizon is required to divest, which will continue to operate as Alltel Wireless until they are sold. Alltel will continue to carry on ?business as usual? in these 91 CMAs through divestiture, including in the areas being acquired by AT&T pending regulatory approval. ?We are excited about the possibility of joining with AT&T,? Bowersock said, ?and believe it will be great for our customers.? The sale of assets to AT&T is subject to regulatory approvals, with AT&T expecting the transaction to close in the fourth quarter of this year.

In January 2009, the Department of Justice, Federal Communications Commission, and several state Attorneys General required Verizon Communications Corp. to divest assets in 105 Cellular Market Areas (CMAs) in 24 states in order to proceed with its $28 billion acquisition of the former Alltel Corp. These assets are being managed by a Trustee until divestiture, including ninety-one of these CMAs operating under the Alltel brand and serving more than 2.2 million customers.

Verizon Wireless entered into a definitive agreement with AT&T to sell properties in 79 CMAs currently being operated by the Trust. These include Alltel, Verizon, and Rural Cellular Corp. properties located in 18 states with a total of 1.5 million customers. The states represented are: Alabama, Arizona, California, Colorado, Iowa, Michigan, Montana, Nevada, New Mexico, North Dakota, South Dakota, Tennessee, Utah, Virginia and Wyoming.

The agreement does not include assets being managed by the Trust in the following states: Idaho, Illinois, Ohio, North Carolina, South Carolina and Georgia. Verizon Wireless is actively working on the sale of those properties.

Alltel Wireless continues to be an industry-leader, providing choice and flexibility with its exclusive ?My Circle? feature, providing unlimited calling to and from any 5, 15, or 25 numbers on any network. Alltel Wireless was also the first to offer Anytime Plan Changes, giving customers the flexibility to change their calling plans at any time without extending their contract.

For more information on concerning the sale of the divested markets, consumers can visit and log on to www.alltel.com, and go to the Customer Q&A section."



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