Largest wireless company to add licenses

Verizon Wireless said Tuesday that it plans to spend $3 billion to upgrade its network and to offer shares to the public later this year.<br><br>The company, a new combination of the wireless operations

Thursday, April 6th 2000, 12:00 am

By: News On 6

Verizon Wireless said Tuesday that it plans to spend $3 billion to upgrade its network and to offer shares to the public later this year.

The company, a new combination of the wireless operations of Bell Atlantic, Vodafone AirTouch and PrimeCo Personal Communications, also said it would seek to expand its coverage by buying new wireless licenses.

It is already by far the nation's largest wireless company, with 16 million mobile phone customers and nearly 4 million paging customers.

Verizon also announced national pricing plans, including one that offers 400 minutes for $55 a month, with no long-distance or roaming fees. Customers who want the plan must buy new phones or, in some cases, upgrade existing handsets that can work on three technology standards. Owning networks over a larger territory allows mobile phone companies to operate more efficiently and offer flat-rate pricing.

News of another combination, between the wireless operations of SBC Communications and BellSouth, is expected Wednesday.
Verizon executives said that there would be minimal job cuts at PrimeCo's Dallas-area operations, including its Westlake headquarters, and that overall employment is expected to grow. "There's 100 percent certainty that the closer you are to the customer, there'll be no impact," said Benjamin F. Kahrnoff, president of Verizon's Westlake-based South Central area.
PrimeCo employs about 600 in Westlake, down 100 from last year through a combination of layoffs and attrition. A Las Colinas office will close, with about 80 workers transferred to the company's Westlake facility.

About 100 telemarketing and customer care employees will remain with PrimeCo, supporting operations in Houston, Chicago and Virginia that aren't being absorbed by Verizon. The company is seeking a buyer for those operations.

Verizon will have dual headquarters in New York City and Bedminster, N.J., and about 24,000 employees. It expects to add the wireless operations of GTE Corp., if the government approves Bell Atlantic's plans to merge with GTE.

Then, Verizon Wireless would have about 24 million mobile phone customers and 30,000 employees.

Besides the new brand, the main change for Verizon customers will be the new national pricing plans. The company will continue to offer regional calling plans better suited to subscribers who don't travel frequently.

And later this year, Verizon will offer national prepaid calling plans, short-messaging service and more robust Internet access.

"PrimeCo did not have the nationwide reach that we really needed to compete effectively. What we've really done now is bring a whole new array of services to the PrimeCo customer," said Lowell McAdam, Verizon's chief operating officer and PrimeCo's former CEO. The combination also includes AirTouch's Dallas-based paging operations.