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AT&T and Verizon Wireless Agree to Sale and Further Asset Swap

May 8, 2009, 3:19 PM by Eric M. Zeman
updated May 9, 2009, 11:21 AM

AT&T formally announced its intent to purchase certain former Alltel assets (as well as Verizon and Rural Cellular assets) from Verizon Wireless for the sum of $2.35 billion. As part of the deal, AT&T will acquire Verizon's licenses, network assets and 1.5 million subscribers in 79 regions, including rural areas of the following states: Alabama, Arizona, California, Colorado, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, South Dakota, Tennessee, Utah, Virginia and Wyoming. In addition to that purchase, AT&T is going to sell certain Centennial Communication assets to Verizon for $240 million. AT&T had announced its intent to buy Centennial in 2008, and that deal is still pending regulatory approval. The sale to Verizon includes 120,000 subscribers spread across Louisiana and Mississippi. This second transaction is meant to prevent overlap in some regions. AT&T said it will offer its new subscribers access to all its devices, 3G services and Wi-Fi hotspots. The former Alltel assets are all CDMA-based, however, and AT&T uses GSM technology. AT&T didn't provide details nor a time frame on how or when it would transition those 1.5 million CDMA customers to GSM-compatible equipment.

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Comments

This forum is closed.

This forum is closed.

WiWavelength

May 8, 2009, 9:48 PM

In a nutshell...

To be allowed to devour ALLTEL, VZW has to divest some overlap (licenses, network, subscribers). And AT&T is now the likely buyer.

Simply put, VZW mildly loosens its grip, while AT&T tightens its squeeze, and both increase their nearly duopolistic hegemony on the domestic wireless market.

Yeah! Great job of regulation, FCC!

AJ

pfs2009

Ma Bell rises again.

...

Slammer

WiWavelength said:
To be allowed to devour ALLTEL, VZW has to divest some overlap (licenses, network, subscribers). And AT&T is now the likely buyer.

Simply put, VZW mildly loosens its grip, while AT&T tightens its squeeze, and

...
(continues)

...

neovox

May 11, 2009, 7:05 AM

So...

So, what exactly does this mean for the consumer in the way of service impact? I'm particularly interested in the impact for Michigan customers, but I suppose it applies to customers in any of the affected areas?

trophynuts

Yeah im wondering the same thing. I live in North Alabama and would love to be able to swap to an IPhone..Vzw hasn't come out with any cool new phones in a while..im not a crackberry fan.

...

tacoma

May 11, 2009, 4:52 PM

GSM where in VA?

Anyone know of what area or counties in VA.?

maxrebo

May 11, 2009, 12:27 AM

GSM

So .... all the areas of RCC/Unicel in southern Minnesota that were required to get new CDMA devices when going from Cellular One/Alltel to Unicel will now once again get forced to change phones again (but this time it makes more sense since it is CDMA to GSM)!

knoxvegas75

May 9, 2009, 10:08 PM

US Cellular? what about the other million customers?

Ok so the rumor is 1.5 million will go to AT&T

well that leaves around 1 million or so left and plenty of markets?

1. Any news of US Cellular making a grab?

2. can verizon sell the gsm network in a hypothetical market and the cdma and customers to another?

anyone know more details about what was exactly sold.

thanks

ps aj great maps

dave73

knoxvegas75 said:
Ok so the rumor is 1.5 million will go to AT&T

well that leaves around 1 million or so left and plenty of markets?

1. Any news of US Cellular making a grab?

2. can verizon sell the gsm network in a hypoth

...
(continues)

wrightN

May 9, 2009, 9:46 AM

question for an expert on this situation

my store is located in an at&t area that is rural almost 20-25 miles out in about any direction. alltel (cdma in general) has way better coverage out there.

since this is a divested market, is it possible that at&t may pick up some spectrum? and or some towers they can convert to gsm?

jskrenes

wrightN said:
my store is located in an at&t area that is rural almost 20-25 miles out in about any direction. alltel (cdma in general) has way better coverage out there.

since this is a divested market, is it possible that at&

...
(continues)

...

WiWavelength

wrightN said:
my store is located in an at&t area that is rural almost 20-25 miles out in about any direction. alltel (cdma in general) has way better coverage out there.

since this is a divested market, is it possible that at&

...
(continues)

...

ajlineman

May 8, 2009, 4:38 PM

So... Assets?

Assets meaning subscribers too? Is this going to put AT&T back ahead of Verizon in overall amount of subscribers?
Do we get to rearrange the forum list yet again?

fahrende

I think they just meen spectrum/towers. Alltel owns some GSM infrastructure due to its earlier buyout of Western Wireless, but I'm not so sure if they also have to give up some of their CDMA markets as well...

...

familyguync07

no we don't even if they get those customers it wouldnt be enough to take over no.1 even if they do they still are not number one in my book

Burger Time

ajlineman said:
Assets meaning subscribers too? Is this going to put AT&T back ahead of Verizon in overall amount of subscribers?
Do we get to rearrange the forum list yet again?

Alltel just used its GSM network to...
(continues)

...

cellphoneslinger

May 8, 2009, 4:04 PM

OK .....

So which markets will be bought anybody know yet?

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