AT&T buying Alltel for $780 million, getting more coverage in six states
This will buy AT&T licenses, network assets, retail stores and some 585,000 subscribers.
Alltel’s network covers nearly 4.6 million people in rural areas throughout the states of Georgia, Idaho, Illinois, North Carolina, Ohio and South Carolina. This expanded coverage will obviously be of biggest benefit to AT&T.
Not least, AT&T will get a hold on spectrum in the 700MHz, 850MHz and 1,900MHz bands. All those are frequencies that should easily be integrated in AT&T’s existing network.
If the FCC and the Departmen of Justice greenlight the deal, it should close sometime in the second half of 2013.
source: The Next Web
AT&T To Acquire Wireless Spectrum and Assets from Atlantic Tele-Network, Inc., Enhance Wireless Coverage in Rural Areas
DALLAS--(BUSINESS WIRE)--AT&T* today announced that it has signed an agreement with Atlantic Tele-Network, Inc. (ATNI) to acquire the company's U.S. retail wireless operations, operated under the Alltel brand, for $780 million in cash. Under terms of the agreement, AT&T will acquire wireless properties, including licenses, network assets, retail stores and approximately 585,000 subscribers.
ATNI operates under the Alltel name in the U.S., and its network covers approximately 4.6 million people in primarily rural areas across six states - Georgia, Idaho, Illinois, North Carolina, Ohio and South Carolina. The acquisition includes spectrum in the 700 MHz, 850 MHz and 1900 MHz bands and is largely complementary to AT&T's existing network. ATNI currently operates a retail CDMA network for its subscribers in these areas. AT&T expects that as it upgrades the network, ATNI customers and existing AT&T customers who roam in these areas will enjoy an enhanced mobile Internet experience.
AT&T expects integration costs for network conversion from CDMA will not result in significant dilution to EPS or impact to cash flow. The transaction is subject to review by the Federal Communications Commission and the Department of Justice and to other customary closing conditions and is expected to close in the second half of 2013.
*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.
AT&T Inc. (NYSE:T) is a premier communications holding company and one of the most honored companies in the world. Its subsidiaries and affiliates – AT&T operating companies – are the providers of AT&T services in the United States and internationally. With a powerful array of network resources that includes the nation's largest 4G network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet, voice and cloud-based services. A leader in mobile Internet, AT&T also offers the best wireless coverage worldwide of any U.S. carrier, offering the most wireless phones that work in the most countries. It also offers advanced TV services under the AT&T U-verse® and AT&T │DIRECTV brands. The company's suite of IP-based business communications services is one of the most advanced in the world.
Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at http://www.att.com/aboutus or follow our news on Twitter at @ATT, on Facebook at http://www.facebook.com/att and YouTube at http://www.youtube.com/att.
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Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise.
1. 14545 (Posts: 985; Member since: 22 Nov 2011)
Wait, huh? I thought alltel was owned, merged, or partnered with Verizon? Am I missing something?
5. deago78 (Posts: 154; Member since: 08 Oct 2009)
As did I. I remember a number of Alltel stores being converted to verizon locations a number of years ago in my home town in Ohio.
18. corporateJP (Posts: 1289; Member since: 28 Nov 2009)
Verizon bought Alltel and Unicel around the same time a few years back and was ordered on completion to divest some markets by the FCC so it would not be considered a monopoly. AT&T got some of it earlier, AtlanticTel got most of the rest of Alltel, and a small few markets went independent.
AT&T seems to want all the rest of it now.
2. IamTheGodfatherofCell (Posts: 33; Member since: 05 Oct 2011)
Yeah Alltell was bought out by Verizon a few years back....not making much sense there....further explanation please
3. gameday78 (Posts: 47; Member since: 17 Mar 2012)
alltel was bought out by Verizon a few years ago. When that happened they were only able to buy something like 90% of the company and its assets... That way Verizon didnt have a monopoly in some markets. This is what is left of alltel that att is snatching up.
6. TheMan (Posts: 346; Member since: 21 Sep 2012)
What I recall is then #2 Verizon announced a deal to buy then #7 Alltel. But the deal ran into some competitive issues with the regulators in some markets, so VZW was permitted to buy *most* of Alltel (I'm remembering 59%, but don't quote me). Verizon was required to sell some assets (which AT&T took advantage of last year). Eventually, Verizon's Alltel's customers that hadn't been converted already were folded into the Verizon brand 12-18 months ago.
What remained of Alltel continued to operate independently (as far as I know) until Atlantic Tele-network bought them 2-3 years ago. Now AT&T wants them.
8. ibap (Posts: 675; Member since: 09 Sep 2009)
OK, but Alltel is CDMA, and AT&T is GSM. So how is this going to work? We wound up on Sprint because Verizon didn't work at our high school while our daughter was there. Alltel worked as well, but AT&T was totally dead. This is going to thrill a lot of Alltel customers (please note - sarcasm).
9. MartyK (Posts: 669; Member since: 11 Apr 2012)
My question also, GSM and CDMA?...
Unless they are going to run straight LTE off these frequencies..hummm
10. 14545 (Posts: 985; Member since: 22 Nov 2011)
Yeah, that along with the VZW deal, none of this makes sense. To run GSM off those towers I'm sure would require a complete upgrade to them. Then the remaining alltel customers would lose their roaming deals because VZW doesn't, can't, have a roaming deal with ATT since ATT is all GSM. I really wish the article would explain more about this.
11. Charlie_boy (Posts: 51; Member since: 04 Jan 2013)
If they're going straight to LTE.. Subscribers with old (non LTE) handsets will have problems..
13. cybervlad81 (Posts: 83; Member since: 04 Apr 2011)
If I remember correctly Alltel actually had both GSM and CDMA, the majority of it's network was CDMA but they did have some GSM, in other words - Alltel was a mess. Also, the spectrum is what really matters, converting equipment is done pretty regular anyways as technology changes.
12. Zero0 (Posts: 561; Member since: 05 Jul 2012)
Same way MetroPCS will merge into T-Mobile, I assume. They're almost the same deal. Major GSM carrier buying a CDMA carrier with compatible spectrum.
After the deal is approved, new phones will be launched which are AT&T compatible. In existing AT&T markets, they'll add GSM spectrum to towers as time goes on. The new coverage areas will get upgraded AT&T towers, with CDMA spectrum being gradually moved over as Alltel customers upgrade phones.
15. 14545 (Posts: 985; Member since: 22 Nov 2011)
Maybe, one can hope anyway, these carriers buying other carriers will lead to an era of unlocked, unbranded phones. Ones that can run GSM, CDMA, LTE, Evdo, HSPDA and +, etc. That way we can buy our phone off contract and then pick the carrier we want. Doubt it though.
17. corporateJP (Posts: 1289; Member since: 28 Nov 2009)
Yeah...don't hold your breath on that one.
14. jiggaphone (Posts: 8; Member since: 25 Mar 2011)
so as some one else stated verizon had purchased alltel but due to monopoly rights had to sell some off to other companies and some of the other companies choose to keep the alltel name due to it being more well known. now it those other companies that att wants. all of south dakota and most and majority of north dakota were sold to att and the conversion was a pain in the ... but it happened and it will probably be smoother the second time around. so yes there are some companies around that just took the alltel name.
16. corporateJP (Posts: 1289; Member since: 28 Nov 2009)
AT&T dropped the ball in the Dakotas BIG TIME when they received the Verizon leftovers, I witnessed it with my own eyes.
I personally can't see anything good happening once AT&T touches it.
19. corporateJP (Posts: 1289; Member since: 28 Nov 2009)
To be brutally honest, I'd rather go back to "Regional Carriers".
These big companies are just into greed and we are all just becoming meaningless numbers.
21. 1ceTr0n (Posts: 441; Member since: 20 May 2012)
Then dont buy a contracted smartphone, get a pay as you go one. No ones got a gun to your head