Background: I've been watching the "cellular scene" in Oregon for the past seven years. Cellular service here in Oregon is not very developed especially in rural locations. It always seemed to me that even a relatively modest investment in Oregon could turn the tide in terms of who is on-top. Historically, the big daddy 800Mhz (A and B) carriers would roam on smaller rural carriers to complete their coverage map. Verizon typically roamed on the state's largest rural CDMA carrier "US Cellular" and AT&T would roam on Unicel (was Cellular One NW) and Edge Wireless. While a Verizon phone could theoretically roam on Unicel, it didn't happen much because the only technology they had in common was analog. Unicel is/was a TDMA & Analog, and then GSM carrier.

What Happened? Verizon recently acquired both RCC Unicel and Ramcell. Ramcell was no real surprise given that they already were a roaming partner and using the same CDMA technology as Verizon. Frankly, Ramcell was already dead in the sense that they could not afford to improve their network, so for Ramcell customers they really only have one direction to go (up). For example, a note on their web page indicates that they closed all of their stores in Oregon. The purchase of Unicel is quite surprising as they provided the competing GSM coverage, so their acquisition will involve a complete CDMA overlay on their existing GSM network. Verizon has stated that they will not dismantle the GSM network so that GSM users will still have somewhere to roam. The magnitude of this issue is that both of the largest (by geographic coverage) rural players in Oregon are now going to be CDMA.

Speculation: While Verizon will keep the GSM network alive, all of their native customers will be forced to switch to CDMA. It is also likely the CDMA side may fare better over time both in terms of maintenance and upgrades. If I were AT&T or T-Mobile, I'd absolutely be concerned. In fact, you may even see AT&T attempt to acquire US Cellular to ensure GSM rural coverage-- but perhaps not. Bear in mind that US Cellular is a family owned operation, and may not even be acquireable.

Who is this good for? In some ways this will be good, at least initially for both Verizon, Alltel, and Sprint customers (or other CDMA folks) as the vast geographic coverage in places covered will be available to anyone with a CDMA phone capable of roaming on Verizon. The Ramcell acquisition will be good for everyone (including their own customers) as Verizon has already announced plans to upgrade their network to EVDO rev. A. An upgrade that probably never would have occured under the old management due to lack of resources. The Unicel acquisition is well, unexpected, given that they haven't traditionally operated a CDMA network. It's unclear what this will mean for our GSM users in the state over time.

What's the catch? Less competition tends to mean more expensive service (at least over time), and perhaps a more arrogant Verizon less interested in listening to customers who may feel they lack any other real option (at least here in Oregon). If Verizon had the option to effectively remove roaming coverage, they would have a real strong-hold on the state of Oregon users of cellular service. See the article linked just below for why this appears to be impossible now...

Other Important FCC News and its Effects: The FCC has passed an ammendment that will require technology compatible carriers to be able to roam on each other. This has huge implications, but for starters it may mean smaller carriers like T-Mobile will have the option to fill-in their coverage with the likes of AT&T, and CDMA carriers will have the right to roam on the likes of Verizon. The way I read the story this doesn't mean an individual can complain to the FCC about lack of coverage (even where roaming exists) but it does mean that the carrier itself can require another technology compatible carrier to permit its customers to roam (if they are willing to pay the roaming fees). This could also damage a carriers competitive advantage, and subequently reduce their interest in creating new coverage. I do not know if this is a good thing or a bad thing yet, but my guess is that it will ultimately be good for consumers.