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Verizon asks FCC for 60-day extension

Alltel sale may be delayed

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It may be at least two more months before Black Hills and South Dakota Alltel cell phone customers know who gets the check for their phone bills.

The S.D. Public Utilities Commission Monday morning forwarded information that Verizon has asked the Federal Communications Commission for a 60-day extension to sell Alltel services.

Apparently a similar 60-day request from Verizon also had to be made of the U.S. Department of Justice.

South Dakota, according to information forwarded by PUC Commissioner Dusty Johnson Monday, is only one of 105 cellular market areas ordered sold by the PUC when Verizon bought Alltel as of January.

Athough the state PUC has some control over operations of cell firms in the state, the purchase is entirely under federal jurisdiction. PUC commissioners have said they have had to receive information on the sale from third party sources rather than the companies directly involved.

Verizon's FCC filing apparently said the complexity of finding buyers "particularly during the current economic crisis" is the reason for requesting the extension.

If approved, that could push the sale of Alltel "properties" in South Dakota to July 8 from the current May 9 deadline.

Johnson said last week that about 30 applicants initially had been listed as possible suitors for the Alltel service in South Dakota.

Verizon's request to the FCC stated that it had signed 70 agreements with more than 70 prospective buyers - but that some of the leading bids would only be in effect after Verizon gave the bidders more information.

The FCC approved the Verizon Wireless purchase of Alltel last November, but required that Alltel in South Dakota be sold to another firm.

Since both Alltel and Verizon each hold about half of South Dakota's total cellular phone business, the purchase would have given Verizon a virtual monopoly on cell service in the state.

Johnson said the sale shouldn't affect cell customers in the Black Hills area or statewide other than perhaps using another company name and address when they pay their bills.

He said he hoped that whoever purchased the Alltel properties - equipment, real estate and service agreements - would continue to work with state officials to help fill in "dead spots" for cellular service in less populated areas of South Dakota.

If Verizon does not complete the sale within the current or extended time period, it appears the FCC would assign a "divestiture trustee" to handle the sale and manage the markets where a sale has been mandated by federal officials.

In the Black Hills area, both Verizon and Alltel customer sales and individual service agreements have been handled both by company "stores" and by private contractors.

Belle Fourche customers, for example, may set up their cell service through the local Radio Shack dealer for Verizon, and Express Wireless for Alltel.

Oz Hespe at Radio Shack in Belle Fourche has said he is probably the most longtime cell phone franchise vendor in Western South Dakota and has been involved in the business since the first towers extended service to the Northern Hills.

Express Wireless has outlets for its franchise service in Belle Fourche, Spearfish, Hot Springs and Buffalo.

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