Oct. 15 (Bloomberg) -- Federal Communications Commission Chairman Kevin Martin backed Verizon Wireless's $28.1 billion purchase of Alltel Corp. as long as the carrier sells off more wireless assets to preserve competition.

Verizon should sell operations in five rural markets, in addition to divestitures the carrier has already negotiated with the Justice Department, Martin said today at a press conference in Washington. A vote is scheduled for Nov. 4.

The acquisition, also subject to Justice Department approval, would let Verizon Wireless overtake AT&T Inc. to become the largest U.S. wireless carrier. Last week, Verizon offered to sell assets in 15 additional markets, bringing the total to 100, to ease regulators' concern that the combined company will have too much market power.

Goldman Sachs Group Inc. and TPG Inc., the sellers, bought Alltel last year in a leveraged buyout valued at $24.7 billion. Verizon Wireless, owned by Verizon Communications Inc. and Vodafone Group Plc, plans to pay $5.9 billion in cash and $22.2 billion in debt for Little Rock, Arkansas-based Alltel.

Martin recommended approving Sprint Nextel Corp.'s planned wireless venture with Clearwire Corp., and also proposed letting unlicensed wireless devices use vacant television airwaves if they include technology to prevent them interfering with broadcast-TV signals. The FCC plans to vote on both those measures at the Nov. 4 meeting.

Verizon Communications, based in New York, fell $2.31, or 8 percent, to $26.64 at 4 p.m. in New York Stock Exchange composite trading. The shares have fallen 39 percent this year.

To contact the reporter on this story: Molly Peterson in Washington at mpeterson9@bloomberg.net

Last Updated: October 15, 2008 16:30 EDT