Syniverse may lose from Verizon/Alltel merger

Sue Marek — Thu, 03 Jul 2008 11:22:31 -0400

Verizon Wireless planned $28.1 billion acquisition of Alltel may prove a losing deal for vendors such as Syniverse. Although both operators are customers of Syniverse, the combination of the two carriers could reduce Syniverse's overall revenue. Currently, Verizon represents 14 percent of Syniverse's revenue and Alltel is one of the firm's top 10 customers, which in total make up 46 percent of the company's total revenue.

Syniverse handles the roaming transactions that occur between the two firms. The merger would mean an end to those transactions. Syniverse CEO Tony Holcombe says the company is working hard to reduce the impact of the merger by broadening its customer base.

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