[Breaking News - It's Official, AT&T has agreed to buy Alltel here in Montana, of couse how the transition will go is still just my best guess based on my knowledge of past transactions]
Well, it's all over the news today - AT&T is rumored (and I note, rumored) to be close to buying most of the Alltel divested markets. See
FierceWireless and many other sources. If you're an Alltel customer in Montana, you probably wonder what this means to you.
First, we have to take a step back. In January, Verizon Wireless completed a deal to purchase Alltel. The FCC and DOJ approved this conditional on them selling 105 market areas where Verizon and Alltel would have a near monopoly (including 9 of the 10 market areas in Montana, the 1 remaining Montana market has no Verizon service so they were allowed to keep Alltel there). Montana and the Dakotas have essentially Verizon and Alltel. There is some competition but not nearly enough. I have MTPCS CellularOne and I like them, but they have a very small number of customers.
So how does this affect you, the Montana Alltel customer. Well, today, it looks like AT&T is probably set to become your new wireless carrier. That's a good thing, really. It's not certain either - the AT&T deal may not go through, and even if it does, they might sell Montana to someone else - the news only says AT&T is ready to buy most of the Alltel markets that have to be divested, not all of them. We'll continue on the assumption AT&T does pick up Montana, but it's not certain yet.
In the short term, nothing at all will change for you. But over time, AT&T will make changes. Alltel (like Verizon) uses a type of network known as a CDMA network. AT&T uses the same type of network as MTPCS CellularOne (unrelated to the old CDMA CelluarOne that became Alltel), this is known as GSM. In order to offer AT&T phones, AT&T is going to need to convert to GSM. If you are familiar with what happened with CellularOne for months when they did this, you may be dreading this process. Honestly, I love CellularOne's service, but AT&T can pull off this transition much more smoothly.
Alltel already has some GSM coverage in Montana created for a roaming agreement with T-Mobile that has been around for years. Since it's not their main network, their GSM is not nearly as good as their CDMA, but AT&T has a building block to start from and AT&T customers from out of state will be able to be on an AT&T owned network from day one.
I imagine that AT&T will want to stop selling CDMA handsets as soon as possible so that there is less equipment that won't work on their network. I expect AT&T to begin immediately following the closure of their sale to make the major network improvements (especially in switching) required to begin selling GSM handsets in Montana. I fully expect them to maintain a transition period where existing Alltel CDMA customers stay on the Alltel CDMA network; at least until the GSM network is fully built-out.
Following this network completion, I expect the pressure to start gently but get stronger and stronger to buy a GSM handset. You'll probably be given an extremely good price on a GSM handset as well as the promise of better coverage outside of Montana, since you'll be able to stay on AT&T's network. Possibly even better coverage in Montana if they add new sites ("towers") since they will be GSM only.
AT&T has some great handsets, including the iPhone. GSM also offers some very nice benefits over CDMA - SIM card access control (a card in your phone is activated instead of the phone itself so you can buy a cheap generic GSM phone on eBay instead of an overpriced one from your carrier when your phone breaks - just pop in your SIM to activate it), global roaming (Verizon global phones are GSM/CDMA dual-mode phones; most of the world is just GSM), and much better three-way calling are the three biggest I can think of.
Will there be a downside? Well, AT&T costs more than Alltel (they have similar pricing to Verizon). I expect them to honor Alltel contract pricing at least for the length of the contracts, though. Also, GSM technology is based on a time-division system where if you get too far from a site you end up out of your time slot even if you have great signal. This limit is 35km. It is very unlikely this limit will ever affect you, since terrain and capacity issues usually limit cell sites to much less than 35km. In a few cases in the flat plains of eastern Montana it is possible Alltel has a few sites that are expected to cover more than 35km, if this is the case, it would not be very difficult for AT&T to add fill in coverage.
But for most people, this is great news. It means another national network competing here, and in the long run - with more competition - probably better coverage for all Montanans (including those on Verizon). This is a good thing.
P.S. Remember this is all speculation based on the latest news and on how customers have been handled in past acquisitions by a carrier that uses a competing technology. Until it's officially announced, nothing is certain.