AT&T Pays $780 Million for Rural CDMA Network
Published on: 22nd Jan 2013
Note -- this news article is more than a year old.
USA based AT&T has signed an agreement with Atlantic Tele Network to acquire the company's U.S. retail wireless operations, operated under the Alltel brand, for USD780 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. Alltel's 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.
Alltel currently operates a CDMA network, and AT&T plans to overlay that with its own 3G based service.
AT&T expects integration costs for network conversion from CDMA will not result in significant dilution to profits 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.