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Dobson Considers Sale, Too

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

Pink Jazz

Jun 25, 2007, 2:53 PM
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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nextel18

Jun 25, 2007, 5:25 PM
Read my answer in my views. https://www.phonescoop.com/news/discuss.php?f m=m&ff=2258&fi=1236242
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algorithmplus

Jun 25, 2007, 6:23 PM
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 the number of subscribers, but for other assets, such as spectrum licenses, and the infrastructure was compatible, and subscriber and employees came with the package.
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colione112

Jun 25, 2007, 9:36 PM
It's possible AT&T would buy them just for the rural coverage. It would fill out the coverage map while lowing roaming fees.
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nextel18

Jun 25, 2007, 10:02 PM
$3.8B is a lot of money just for the additional rural coverage. Roaming fees over a period of time decrease anyway. Take a look at my post https://www.phonescoop.com/news/discuss.php?f m=m&ff=2258&fi=1236642 it explains the roaming. As well as https://www.phonescoop.com/news/discuss.php?f m=m&ff=2258&fi=1236242.
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colione112

Jun 25, 2007, 11:31 PM
I already read it.

My point is it would allow AT&T to cover more rural area, while also giving them more Spectrum in these markets to target these customers, while expanding the "largest voice and data network".

Honestly 3 or 4 billion is a drop in the bucket to this company. They spend more just to turn the lights on and fire up the computers everyday.
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johnnycashak

Jun 27, 2007, 7:46 PM
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 with them shortly after because they were one of the first to offer a statewide/nationwide flat rate without roaming charges. (AK is a big state, and if your job keeps you on the move, roaming fees can kill ya) Things were kosher until early 2003 when AT&T put out a full page ad in the local paper notifying it's customers that we would all be Dobson customers by the end of the week, as the two were basically doing a region swap, and AT&T was trading us for some of Dobson's customers in Californ...
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