Alltel Wireless is shortening its standard 2-year service contract to one year effective June 5, and handset prices will remain the same. However, there’s a catch: The deal is only available to customers in the 91 cellular market areas that Verizon Communications is required to divest.

Aside from the contract change, Alltel will carry on business as usual in the areas which Verizon is divesting, including the areas being acquired by AT&T pending regulatory approval.

Verizon was required to divest 2.1 million wireless subscribers in 22 states as well as spectrum and business management assets as a result of regulatory approvals related to its $28.1 billion purchase of Alltel earlier this year.

AT&T also was required to divest some of its Centennial Communications assets. As a result, the rival carriers agreed to an asset swap.

AT&T will pay $2.35 billion in cash for Verizon assets covering 1.5 million subscribers in 18 states, primarily in rural areas. The transaction has not yet been approved by the government but is expected to close in the fourth quarter of this year.

AT&T will have to convert the Verizon assets from CDMA to GSM. The undertaking is expected to take about a year and cost AT&T about $400 million.

In turn, Verizon will buy AT&T assets in five areas covering 120,000 subscribers for $240 million as a result of government approvals related to AT&T’s purchase of Centennial Communications in November of last year.

Verizon is still actively working on the sale of properties in Idaho, Illinois, Ohio, North Carolina, South Carolina and Georgia.