LONDON: British telecom giant Vodafone said that Verizon Wireless and its affiliate in the US, will acquire American rural mobile major Alltel in a deal valued at 28.1 billion dollars.Alltel is the 5th largest mobile operator in the US, with over 13 million customers across 34 states. Commenting on the deal, Vodafone's outgoing CEO Arun Sarin, a person of Indian origin, said the acquisition is expected to significantly increase the value of its 45 per cent interest in VZW.

The deal reinforces Vodafone's leading position in the world's largest mobile market by revenues, he added.Last month, Sarin announced his resignation with effect from July 29 after a five-year stint as the CEO of UK-based Vodafone, the world's largest mobile operator.
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Sarin has led a number of strategic initiatives by Vodafone such as last year's acquisition of Hutch-Essar, then India's fourth largest mobile operator. After acquisition, the name of the company has changed to Vodafone Essar.Sarin said VZW's free cash flows will initially be deployed in reducing net debt and the VZW Board has agreed to conduct an annual dividend review process and to the payment of enhanced tax distribution.

Vodafone said the deal reinforces VZW's position as the leading mobile operator in the US with 80 million customers and pro-forma CY2007 revenues of 52.7 billion dollars.Along with the spectrum acquired in the recent auctions in the US, the deal also strengthens VZW's spectrum status leaving it well-positioned to capitalize on the continued growth of the US mobile market.