Helio No More!: Virgin Mobile strengthens its 18-24 Demographic Monopoly?

Virgin Mobile USA Buys Helio for $39 Million

Friday, 8:54 AM by Eric M. Zeman

Today Virgin Mobile USA announced that it will buy Helio from SK Telecom and Earthlink for about $39 million. In return, SK Telecom will invest in Virgin Mobile USA and acquire about 17 million shares of Virgin Mobile USA, as well as two seats on its board. Virgin will acquire Helio's customers, handset inventory, and will have access to its post-paid billing systems, allowing Virgin Mobile USA to begin offering post-paid accounts. Virgin also expects that it will be able to negotiate better rates with its network operator partner Sprint, and will explore how to best offer Helio's content and other services to its existing customer base. The companies expect the deal to close during the third quarter of 2008.

New Sprint Pricing: Trying to Reinvent the wheel, and stop the churn

Sprint Simplifies Pricing, Makes Picking the Perfect Plan As Easy As 1-2-3
New Streamlined Options Include Share Plans with Unlimited Data and Messaging for Less Than Competitors

OVERLAND PARK, Kan.--(BUSINESS WIRE)--June 12, 2008--Sprint (NYSE:S) is giving customers an easier way to budget for their monthly wireless expenses with the launch on June 15 of new simplified pricing plans. Building on the popularity of Sprint's $99 Simply Everything(SM) plan, new share plans for families will include unlimited messaging and data for one low price, so there's no calculator needed to figure out wireless costs for the whole family's favorite services.
"These days, many families are facing tight finances, and unexpected extra charges on a wireless bill can make budgeting difficult - but with Sprint plans that include all the services customers want for one low price, they can have peace of mind that they're getting a lower price than competitors offer," said Will Souder, vice president of pricing for Sprint. "We want customers to be able to easily see the value in these options, so we've removed the clutter of more complicated plans. Customers can quickly compare and see which plan is best for them."
The new simplified pricing makes choosing the right plan to fit each customer's needs and budget as easy as 1 - 2 - 3:
1. Choose an individual plan for a single line or a share plan for multiple lines.2. Choose voice only, voice with unlimited messaging, or voice with unlimited messaging and unlimited data.3. Choose the number of minutes.
For individuals, new voice-only Talk plans will be available for $39.99 for 450 minutes or $59.99 for 900 minutes. These plans join the Talk/Message/Direct Connect(R) plans introduced in February at $49.99 for 450 minutes, $69.99 for 900 minutes or $89.99 for unlimited minutes; and the Everything plans introduced in February at $69.99 for 450 minutes, $89.99 for 900 minutes or $99.99 for Simply Everything with unlimited minutes.

3G iPhone: It's here, it's faster, it's chepaer, it's better

Today at Apple's WordWide Developer's Conference it announced the next version of the iPhone, complete with 3G. This new iPhone has thinner edges, a black, plastic back cover, a flush 3.5mm headset jack and solid metal buttons.

It carries over the same 3.5-inch display, and has improved audio quality. Apple says that talk time with 3G will be 5 hours, and stand-by time will be 300 hours. 3G browsing time will be 5 to 6 hours, with 7 hours of video playback, and 24 hours of audio playback. GPS will be built into the device.

The 8GB version will sell for the price of $200, a 16GB model will sell for $300, and it will also come in white. It will be available July 11. It will support tri-band UMTS/HSDPA bands at 850/1900/2100MHz. Coincidentally, the FCC approved the 3G version of the iPhone today.

Watch Out iPhone: Samsung Omnia joins the touch screen game

Samsung today announced the Omnia, a high-end smartphone that combines Windows Mobile 6.1 with Samsung's TouchWiz finger-touch interface. The Omnia supports quad-band GSM/EDGE, plus HSDPA 7.2 for Europe and Asia.

Key features include a 3.2-inch wide touch display, GPS, stereo Bluetooth, WiFi, and up to 16 GB of internal memory plus a memory card slot. A 5-megapixel camera is also included, and sports auto-focus, geo-tagging, auto-panorama, stabilizer, face detection, smile detection, and video editing.

FM radio and auto-rotation round out the features packed into the 12.5mm body. The Omnia will be available in Asia starting in June, followed by Europe in July. The Omnia's model number is SGH-i900; an SGH-i907 (with the "7" implying an AT&T model) was recently approved by the FCC.

And Then There Were Four: Verizon Wireless Buys Alltel!

BASKING RIDGE, N.J., and LITTLE ROCK, Ark. — Verizon Wireless has entered into an agreement with Alltel Corporation and Atlantis Holdings LLC, an affiliate of private investment firm TPG Capital and GS Capital Partners, to acquire Alltel Corporation in a cash merger. Verizon Wireless is a joint venture of Verizon Communications (NYSE: VZ) and Vodafone (NYSE and LSE: VOD).

Under the terms of the agreement, Verizon Wireless will acquire the equity of Alltel for approximately $5.9 billion. Based on Alltel’s projected net debt at closing of $22.2 billion, the aggregate value of the transaction is $28.1 billion.

The parties are targeting completion of the merger by the end of the year, subject to obtaining regulatory approvals.

Once this transaction closes, customers of both companies will have access to an expanded range of products and services, including a premier lineup of basic and advanced devices and an expanded IN Network calling community. Alltel customers also will benefit from advanced services including over-the-air downloadable music from a three-million-song library, and a network that is nationwide, for a uniform coast-to-coast experience. They also will be able to take advantage of industry-leading consumer policies, including Test Drive and Worry Free Guarantee®.

“This move will create an enhanced platform of network coverage, spectrum and customer care to better serve the growing needs of both Alltel and Verizon Wireless customers for reliable basic and advanced broadband wireless services,” said Lowell McAdam, Verizon Wireless president and chief executive officer.

Alltel serves more than 13 million customers in markets in 34 states. This includes 57 primarily rural markets that Verizon Wireless does not serve. The transaction puts the Alltel markets and customers on a path to advanced 4th generation services as Verizon Wireless deploys LTE technology throughout its network over the next several years. Alltel’s customers also will reap the benefits of Verizon Wireless’ Open Development initiative, which welcomes third-party devices and services to use the Verizon Wireless network.

Verizon Communications, the owner of the majority stake in Verizon Wireless, expects that the transaction will be immediately accretive, excluding transaction and integration costs. “This is a perfect fit, with Alltel’s high-value post-paid customer base, its solid financials, our common network technology, and significant, readily attainable synergies,” said Ivan Seidenberg, Verizon chief executive officer and chairman of the Verizon board. “Verizon Wireless’ acquisition of Alltel clearly provides opportunities for enhanced value for Verizon shareholders.”

Alltel President and Chief Executive Officer Scott Ford will continue in his current position as head of Alltel until the merger is completed.

“Both Alltel and Verizon Wireless have long track records of delivering a high-quality customer experience in the marketplace,” Ford said. “The combination of our two companies will continue and improve upon that heritage as, together, we can more quickly deliver an expanded range of innovative products and services to our customers.”

Verizon Wireless expects to realize synergies with a net present value, after integration costs, of more than $9 billion driven by reduced capital and operating expense savings. Synergies are expected to generate incremental cost savings of $1 billion in the second year after closing.
Alltel and Verizon Wireless both use a common network technology, which provides advantages of a seamless transition for Alltel customers, ease in integrating the two companies’ networks, and scale efficiencies in operating the larger integrated network.

Morgan Stanley acted as financial advisor to Verizon Wireless on this transaction and is providing bridge financing. Debevoise & Plimpton LLP acted as legal advisor to Verizon Wireless.
Citibank, Goldman Sachs and RBS advised the sellers on the transaction. Wachtell, Lipton, Rosen & Katz acted as legal advisor to Alltel, and Cleary Gottlieb Steen & Hamilton LLP and Ropes & Gray LLP acted as legal advisors to the sellers.

About Verizon Wireless Verizon Wireless operates the nation’s most reliable wireless voice and data network, serving 67.2 million customers. Headquartered in Basking Ridge, N.J., with 69,000 employees nationwide, Verizon Wireless is a joint venture of Verizon Communications (NYSE: VZ) and Vodafone (NYSE and LSE: VOD). For more information, go to: http://www.verizonwireless.com/. To preview and request broadcast-quality video footage and high-resolution stills of Verizon Wireless operations, log on to the Verizon Wireless Multimedia Library at www.verizonwireless.com/multimedia.

About Alltel Alltel delivers voice and advanced data services nationwide to more than 13 million customers. Headquartered in Little Rock, Arkansas. Alltel is a Forbes 500 company with annual revenues of nearly $9 billion.