Dobson Communications, the largest remaining carrier using the Cellular One name, is considering selling its network. The firm has reportedly hired Morgan Stanley to explore the possibility, however this does not guarantee the company is up for sale. Alltel, another large regional carrier which purchased fellow Cellular One licensee Western Wireless, was recently sold to a team of private equity partners. Dobson could follow suit or angle for a sale to Tier 1 GSM carriers AT&T or T-Mobile.
I think this is a very this company perhaps to be bought out because it relies heavily on roaming revenues primarily from Cingular or the new AT&T, which stands at 89% of DCEL’s roaming traffic which was up 9% year over year. DCEL also has an alliance with T-mobile. Through the current valuation, that Alltel was bought out for $27.5 billion for 12 million subscribers, which is about $2291 per subscriber. DCEL has 1.7 million subscribers using that multiple of $2291 per subscriber values the company at $3.895 billion. I think it will be difficult for them to grow in the future, as there are stronger players in this industry who are stronger than DCEL such as the major carriers. The good thing, however, DCEL serves in the rural areas where ... (continues)
Could this be another buyout from AT&T (formerly Cingular)? Cingular bought out the old AT&T Wireless. Cingular's larger parent company, SBC Communications, bought out the original former "Ma Bell", AT&T and kept the AT&T name. The new AT&T then bought out Cingular's other parent company, BellSouth, and absorbed them into the AT&T brand. The Cingular brand was also changed to AT&T after the BellSouth buyout. With Verizon catching up in number of subscribers, this could be a good investment for AT&T to mantain their lead.
As for T-Mobile, I am not sure whether Deutsche Telekom is really interested in making anymore U.S. buyouts. Yes, they did buy out VoiceStream and absorbed them under the T-Mobile brand. However, it was once rumore... (continues)
I don't think AT&T would look at acquisitions merely for the number of subscribers, I think they would take a cost-benefit analysis to determine whether the cost of the acquisition would pay off or not.
I think AT&T Wireless was not bought for th... (continues)
I doubt Deuthsche Telekon will sell Tmobile USA because a good chunk of DT profits comes from Tmobile USA. This will definately be a good investment for tmobile. ATT is still dealing with their recent mergers. The FCC probably will not be too kind to ... (continues)
Well remember, DCEL is a company that reveries revenues from the like of Cingular, T-Mobile and others. They do have spectrum though and they bought recently AWS spectrum during that auction by the FCC. They paid $66 million for 85 licenses during tha... (continues)