Dobson Becomes Largest Operator in Alaska

The USA's Dobson Communications and AT&T Wireless have completed their exchange of wireless properties in California and Alaska. AT&T Wireless transferred its ownership in the Anchorage Metropolitan Service Area (Anchorage MSA) market and the Alaska Rural Service Area (RSA) 2 market to Dobson. The addition of these markets to the two that Dobson already operates in Alaska -- Alaska RSA 1, which includes the city of Fairbanks, and Alaska RSA 3, which includes Juneau -- now makes Dobson the largest wireless services provider in the state.

The Anchorage MSA has a population of approximately 262,100, while the licensed area in Alaska RSA 2 that Dobson acquired has a population of approximately 121,000. Geographically, this area in Alaska RSA 2 encompasses the cities of Wasilla, Palmer and Glenallen to the north and northeast of Anchorage; Valdez, Homer and Seward to the south; and significant tourist destinations in the south central region of the state.

Dobson transferred to AT&T Wireless its ownership in the Santa Cruz, California MSA and California RSA 4 markets. The Santa Cruz MSA covers a population of approximately 255,600, and California RSA 4 includes a population of approximately 386,900.

"This transaction benefits Dobson Communications by combining the state's three largest population centers into one statewide, wireless footprint that covers 91 percent of Alaska's population," said Everett Dobson, chairman, chief executive officer and president for Dobson Communications. "We plan to expand wireless coverage and introduce new voice and data services throughout Alaska."

From a financial perspective, he noted that the property swap complements Dobson's emphasis on developing its subscriber service business, in contrast to its wholesale roaming business. The two California properties generated a high level of roaming revenues, with the great majority of roaming minutes provided by AT&T customers traveling through Santa Cruz and California RSA 4. In contrast, the exchange will result in a net gain of almost 77,000 subscribers for Dobson."

Posted to the site on 27th June 2003