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Dobson Considers Sale, Too

Article Comments  33  

Jun 25, 2007, 1:36 PM   by (staff)

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.

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nextel18

Jun 25, 2007, 5:17 PM

My Views ..

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 th...
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1. Cingular. The problem comes into play is that there is a roaming deal in effect so why would they want to spend $3.85 b for DCEL.


How much does AT&T pay Dobson NOW per minute in roaming charges? If over the next 5 to 10 years Dobson would make...
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gsmrulz

Jun 29, 2007, 5:17 PM

Guess who just bought Dobson?

That's right, AT&T!!! There is no stopping the #1 wireless provider in the US.
So bring on the CDMA haters.
amen Brother!!!
Pink Jazz

Jun 25, 2007, 2:53 PM

AT&T, T-Mobile, or private equity group?

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...
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Read my answer in my views. https://www.phonescoop.com/news/discuss.php?f m=m&ff=2258&fi=1236242
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...
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The funny thing about this is if AT&T did wind up purchasing Dobson, everyone on the Cell One GSM network here is Alaska will wind up right back where we started.

AT&T wireless started offering cell coverage here in the early 90's, and I signed up...
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Iselltheshitoutofphones

Jun 27, 2007, 11:07 AM

Not the last...

Cell One East Texas still exists with the Cell One marquee. This company was formed via the divestured AT&T customers in East Texas during the 3rd quater of 2005.

Will
Cell One in Texas isn't part of Dobson Communications. Same name, but the two aren't affiliated.
bocephus22

Jun 25, 2007, 2:46 PM

T-mobile Shoud buy Dobson

I think T-mobile should by DObson Cellular System since it would give them more coverage in several states as well as more 850MHz band coverage.
T-Mobile might be a good fit. I think SunCom would be better geographically. The 2 combined would be over 2.5 mill customers and could compete better against the big 3.
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Yea but $3.8 billion is a lot of money just for acquiring some more POPs, 1.2 million customers, and more spectrum. Plus they already have a roaming agreement.
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 ...
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sangyup81

Jun 25, 2007, 4:34 PM

Spectrum Holdings

How come no one ever thinks of this when talking about buyouts?

If you talk to insiders, this is one of the biggest reasons why Cingular bought AT&T Wireless and why Sprint bought Nextel (for the 2500mhz licenses that will become used for wimax)

So anyways, does Dobson have many of those valuable 3G/4G spectrum licences?

If they don't, I don't think at&t or T-Mobile USA will be interested.
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...
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