Alltel Acquires Midwest Wireless

Rural cellular carrier Alltel said on Friday it would acquire Midwest Wireless in a deal worth just over $1 billion. The purchase would give Alltel another 400,000 customers, and help it better compete with the four major carriers. Midwest would add to Alltel's network across the states of Minnesota, Iowa and Wisconsin.

The Midwest merger is Alltel's second this year. In January, the company merged with Western Wireless in a $6 billion transaction. Analysts say they expect more consolidation in the industry. Possible buyout targets include local GSM operators Centennial and Dobson, mixed network operator Rural Celullar, and CDMA provider Leap Wireless.