Slash LaneThe deal for $2.35 billion in cash will see the exclusive US iPhone carrier take control of 18 of the 24 markets that Verizon is divesting as part of its recent acquisition of Alltel Wireless, which helped the telecommunications firm snatch the title of the largest US wireless carrier away from AT&T.
More specifically, Friday's agreement will see AT&T acquire wireless properties, including licenses, network assets and 1.5 million current subscribers in 79 service areas, primarily in rural areas of Alabama, Arizona, California, Colorado, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, South Dakota, Tennessee, Utah, Virginia and Wyoming.
"Wireless continues to be AT&€™s greatest growth driver, and this transaction will complement our existing network coverage, particularly in rural areas," said AT&T chief executive Ralph de la Vega. "The acquisition will add network assets, distribution channels and 850 MHz spectrum in a significant portion of the U.S., enabling even better coverage for AT&T’s subscribers in those areas."
Converting those markets from Verizon’s CDMA network to GSM technology and transitioning operations to AT&T is expected to take about 12 months and cost about $400 million. Once the transition is complete, subscribers in those areas will be able to take advantage of AT&T's 3G network and supporting devices like the iPhone and BlackBerry Bold.
AT&T told investors the deal is expected to deliver substantial long-term stockholder value. It's the latest move on the part of the Dallas-based company to build out its mobile data services, which represent its key area of growth. In 2008, AT&T pumped more than $15 billion into building out its wireless network.
Christine McKee
Wesley Hilliard
Malcolm Owen
Andrew Orr
William Gallagher
Sponsored Content
42 Comments
Can you here me NOW?
Good, AT&T needs to beef up their rural areas.
Q: Are the tower placements for CDMA (I assume these were the previous AMPS towers) also ideal for GSM on the 850MHz spectrum?
Q: How will they transition the Alltel users from CDMA to GSM? Have both technologies running at the same time for certain duration and then offer the stragglers a cheap GSM phone when they plan to cut off the CDMA? How did they do it last year when switching out all the AMPS for CDMA?
to complain, than to be the champion, eh, Verison?
Too bad they aren't touching upstate NY. AT&T's coverage around here sucks rocks!!!!
to complain, than to be the champion, eh, Verison?
If that was a joke, I don't get it. This is not a surprise, nor is it bad news for Verizon. Verizon knew all along that it would have to divest some assets as a condition of gaining approval for its deal to acquire Alltel.
(source)