AT&T announced this morning that they have entered into a deal to acquire the Alltel wireless network currently owned by Atlantic Tele-Network, Inc. AT&T will pay cash to acquire the wireless properties, licenses, network assets, retail stores, and roughly 585,000 Alltel subscribers. Alltel currently operates in Georgia, Idaho, Illinois, North Carolina, Ohio, and South Caroline, primarily in rural areas that cover about 4.6 million people. The purchase will help AT&T secure additional spectrum in the 700 MHz, 850 MHz and 1900 MHz bands. Alltel operates a CDMA network that should prove complementary to AT&T’s network. Once upgraded, AT&T expects customers in the covered “areas will enjoy an enhanced mobile Internet experience.”
The deal is subject to FCC and Department of Justice review and approval. AT&T anticipates the deal will close in the second half of 2013. Hit the break for the full press release.
AT&T To Acquire Wireless Spectrum and Assets from Atlantic Tele-Network, Inc., Enhance Wireless Coverage in Rural Areas
DALLAS–(BUSINESS WIRE)–AT&T* today announced that it has signed an agreement with Atlantic Tele-Network, Inc. (ATNI) to acquire the company’s U.S. retail wireless operations, operated under the Alltel brand, for $780 million in cash. Under terms of the agreement, AT&T will acquire wireless properties, including licenses, network assets, retail stores and approximately 585,000 subscribers.
ATNI operates under the Alltel name in the U.S., and its network covers approximately 4.6 million people in primarily rural areas across six states — Georgia, Idaho, Illinois, North Carolina, Ohio and South Carolina. The acquisition includes spectrum in the 700 MHz, 850 MHz and 1900 MHz bands and is largely complementary to AT&T’s existing network. ATNI currently operates a retail CDMA network for its subscribers in these areas. AT&T expects that as it upgrades the network, ATNI customers and existing AT&T customers who roam in these areas will enjoy an enhanced mobile Internet experience.
AT&T expects integration costs for network conversion from CDMA will not result in significant dilution to EPS or impact to cash flow. The transaction is subject to review by the Federal Communications Commission and the Department of Justice and to other customary closing conditions and is expected to close in the second half of 2013.
*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.
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