In a surprising confirmation of yesterday’s rumor, Verizon has indeed agreed to buy Alltel wireless for $28.1 billion in cash. The deal is a huge story for Verizon, who after the deal will rip away the title of largest carrier by subscriber in the nation from AT&T. The merger will make a carrier with over 80 million subscribers, thanks to the 13 million Alltel currently has.

The deal also has a tremendous advantage for Verizon, in that they will acquire all of Alltel’s spectrum. The overlapping spectrum will most likely be sold off to help cover the cost of the acquisition. Verizon will also gain coverage in 57 markets they have no coverage in as of now, thanks to the Alltel acquisition. Another advantage are synergy sites, which will save Verizon tons of cash, as they will not have to build new cell sites, just install their equipment.

The news comes just minutes after Vodafone, who holds 45% stake in Verizon Wireless, confirmed that they two carriers are in talks. They released this statement.

Vodafone confirms that Verizon Wireless is in advanced discussions regarding the potential acquisition of Alltel Corp. There is no assurance that a transaction will be forthcoming.

Verizon has now issued their press release on the matter, which can be read here. They give confirmation of the rumor, and details on how the merger will work.