subject: History Of Alltel [print this page] It was formed in'83 by the merger of two telephone operators formed in the'40s, associated telephone and Mid-continent telephone firms at a point when the telecomms industry was undergoing some kind of transition when the North American telecommunications giant AT&T was being split into smaller operational units, precisely eight units, thus opening up a massive range of possibilities in the phone industry.
At this time the company made a call to diversify its operations in the telephone industry in order to deal with the then growing competition as the industry had been opened up to a more competitive business environment as more companies moved into areas they had not before.
In the months after the merger the company went on to consolidate its acquisitions by focusing on its normal areas of operation acquiring three phone corporations in West Virginia to boost its subsidiary of Mountain state company. The acquisitions fostered the company's growth in its local operations and it also sought to upgrade its network quality and efficiency.
Other awfully moneymaking subsidiaries included its publishing unit which coordinated activities live advertising, printing, sales and distribution of a large number of telephone directories in about 20 states. It minimized investment risks by buying into already operational ventures other than beginning its own which would require large capital investments. By'87 the company was providing about 1.2 million telephone lines across 25 states.
Returns from the local telephone operations of the company were hit by the early 90s recession and further, laws against it were made after it was found that its returns were at a higher rate than the allowed one. Its subsidiary in the info services, Systematics, commanded a leading role in data processing and software development services and to improve its activities in the info processing area, it acquired PC Power which specialised in mortgage processing, but in spite of high revenues from these areas profits were kept low by the heavy costs incurred while venturing into them.
by: Andre Hansen
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