Verizon Wireless is offering to divest airwaves in 85 markets as a part of talks with the Justice Department over a pending merger with Alltel.

The separations would appease regulators' antitrust concerns over the proposed merger, which would create the nation's largest cellphone company.

In comments filed to the Federal Communications Commission on Tuesday, Verizon Wireless said it is committed to divesting overlapping properties with Alltel in the entire states of North Dakota and South Dakota and in parts of 16 additional states.

In a statement, Verizon Wireless said the markets in which it is volunteering to strip holdings represent a preliminary list that may be expanded following additional discussions with the Justice Department.

The deal must be approved by both the Justice Department and the Federal Communications Commission before it can be finalized.

Verizon Wireless also promised to give small, rural carriers the option of maintaining any roaming agreements they now have with Alltel after the merger. The company also said small and rural companies that have roaming agreements with both Alltel and Verizon Wireless can opt for either agreement to govern all roaming traffic after the merger.

The FCC declined to comment on the filing. A DOJ spokeswoman was not immediately available for comment.

Source:Dow Jones