AT&T to buy territories from Verizon for $2.35B
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(Is anybody concerned about this....?!!!!)
AT&T to buy territories from Verizon for $2.35B
AT&T Inc. said Friday it will buy the assets of Verizon Wireless in 79 mainly rural areas for $2.35 billion, a deal that will affect more than 1 million subscribers.
Verizon Wireless was forced to sell the service areas, which are spread over 18 states, to satisfy regulatory conditions of its purchase of Alltel Corp. The areas are mainly Alltel territories that overlap with Verizon's own coverage, but also some Verizon territories and areas covered by Rural Cellular, another carrier Verizon bought last year.
Dallas-based AT&T, the country's largest telecommunications company, was the expected winner of the auction for the assets.
AT&T is getting spectrum licenses, cell towers and 1.5 million subscribers in the deal. Since AT&T phones aren't compatible with Alltel or Verizon phones, these subscribers will need new phones to use AT&T's network.
AT&T said the deal is expected to close in the fourth quarter. After that, it will take less than a year to convert the areas to its own network technology, which will require about $400 million in investment.
The states with areas included in the deal are Alabama, Arizona, California, Colorado, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, South Dakota, Tennessee, Utah, Virginia and Wyoming.
AT&T also said it had agreed to sell five Centennial Communications Corp. service areas in Louisiana and Mississippi to Verizon Wireless for $240 million. AT&T announced plans to acquire Centennial in November 2008, and the deal is awaiting regulatory approval. AT&T said it expects that the sale of Centennial service areas that overlap with its own will boost the of approval.
Verizon Wireless is a joint venture of Verizon Communications Inc. of New York and Vodafone Group PLC of Britain.
Copyright � 2009 The Associated Press. All rights reserved.05-09-09 07:30 AMLike 0 -
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This will not affect coverage or pricing for VZW customers in those areas. What you are not being told, is that VZW has coverage in those already and does not need these assests anyway.05-09-09 07:57 AMLike 0 -
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This will not affect coverage or pricing for VZW customers in those areas. What you are not being told, is that VZW has coverage in those already and does not need these assests anyway.
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Lastraid - so If I understand correctly, I'm a current VZW in Arizona (Prescott) and I will not be forced to switch to AT&T - did I get that correct?05-09-09 08:19 AMLike 0 -
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(Is anybody concerned about this....?!!!!)
AT&T to buy territories from Verizon for $2.35B
AT&T Inc. said Friday it will buy the assets of Verizon Wireless in 79 mainly rural areas for $2.35 billion, a deal that will affect more than 1 million subscribers.
Verizon Wireless was forced to sell the service areas, which are spread over 18 states, to satisfy regulatory conditions of its purchase of Alltel Corp. The areas are mainly Alltel territories that overlap with Verizon's own coverage, but also some Verizon territories and areas covered by Rural Cellular, another carrier Verizon bought last year.
Dallas-based AT&T, the country's largest telecommunications company, was the expected winner of the auction for the assets.
AT&T is getting spectrum licenses, cell towers and 1.5 million subscribers in the deal. Since AT&T phones aren't compatible with Alltel or Verizon phones, these subscribers will need new phones to use AT&T's network.
AT&T said the deal is expected to close in the fourth quarter. After that, it will take less than a year to convert the areas to its own network technology, which will require about $400 million in investment.
The states with areas included in the deal are Alabama, Arizona, California, Colorado, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, South Dakota, Tennessee, Utah, Virginia and Wyoming.
AT&T also said it had agreed to sell five Centennial Communications Corp. service areas in Louisiana and Mississippi to Verizon Wireless for $240 million. AT&T announced plans to acquire Centennial in November 2008, and the deal is awaiting regulatory approval. AT&T said it expects that the sale of Centennial service areas that overlap with its own will boost the of approval.
Verizon Wireless is a joint venture of Verizon Communications Inc. of New York and Vodafone Group PLC of Britain.
Copyright � 2009 The Associated Press. All rights reserved.
So does this mean AT&T will finally compete with Verizon in SW Wyoming?
Interesting...05-09-09 08:23 AMLike 0 -
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It appears this way. Competition is good.
But as the article states, it will take less than a year to convert the area and by then VZW should be rolling out LTE. Although I am sure the roll out will be covering larger metropolitan areas first.Last edited by lastraid; 05-09-09 at 08:31 AM.
05-09-09 08:28 AMLike 0 -
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I vaguely remember reading as well it had something to do with monoply issues. I read that a while back......05-09-09 08:35 AMLike 0 -
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It has to do with the fact that VZW cannot own both sides of the spectrum. As a part of the the Altell merger VZW now owned both the A and B sides of the spectrum and this creates a monopoly in the area. It actually ends up being a good thing for both companies as AT&T will gain much needed coverage and VZW gains capital.05-09-09 08:45 AMLike 0 -
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Well I live about an hour or so from SLC, but I am sure SW Wyoming will be last on the list for LTE.05-09-09 08:45 AMLike 0 -
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In the grand scheme, it's not going to affect any existing VZW customers. This is part of the requirement for VZW to close the ALLTEL deal. These are ALLTEL overlap markets, rural, and it's only going to affect about 2 million subs. AT&T will be acquiring ALLTEL spectrum, assets and customers.05-09-09 08:49 AMLike 0 -
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It does affect some existing subscribers you say it yourself in the 3rd sentence. These customers are in what is now called the Trust and it is unclear what is going to happen at this point.In the grand scheme, it's not going to affect any existing VZW customers. This is part of the requirement for VZW to close the ALLTEL deal. These are ALLTEL overlap markets, rural, and it's only going to affect about 2 million subs. AT&T will be acquiring ALLTEL spectrum, assets and customers.05-09-09 08:52 AMLike 0 -
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Thank u for clarifying that I kinda glossed over the article when I saw it, and it was some time ago that I read it....It has to do with the fact that VZW cannot own both sides of the spectrum. As a part of the the Altell merger VZW now owned both the A and B sides of the spectrum and this creates a monopoly in the area. It actually ends up being a good thing for both companies as AT&T will gain much needed coverage and VZW gains capital.05-09-09 08:57 AMLike 0 -
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I said, it's not going to affect any existing VZW customers.
These are ALLTEL customers. The merger has closed, the integration of companies has not completed yet. ALLTEL customers in these MSAs did not magically become VZW customers. In fact, when AT&T acquires these resources, the ALLTEL subs won't instantaneously become AT&T customers either.
Verizon to Sell Some Alltel Assets to AT&T - WSJ.com
In this WSJ article, they note that VZW is picking up a few properties from AT&T...I'm curious as to where those are (small deal, $240M)...05-09-09 09:00 AMLike 0 -
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Your welcome and it is understandable that you wouldn't go into detail on it. This really only matters to the subscribers affected as it was something that had to be done and really does help both companies. AT&T had to do the same thing a while back and actually ended up getting fined for not complying with FCC regulations.05-09-09 09:01 AMLike 0 -
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It is to early to flame people and I am in a good mood so I am only going to point out that you said exactly what I just said.I said, it's not going to affect any existing VZW customers.
These are ALLTEL customers. The merger has closed, the integration of companies has not completed yet. ALLTEL customers in these MSAs did not magically become VZW customers. In fact, when AT&T acquires these resources, the ALLTEL subs won't instantaneously become AT&T customers either.
Verizon to Sell Some Alltel Assets to AT&T - WSJ.com
In this WSJ article, they note that VZW is picking up a few properties from AT&T...I'm curious as to where those are (small deal, $240M)...05-09-09 09:05 AMLike 0 -
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I don't think it will happen outside of bankruptcy. VZW would gain nothing, they'd have to divest, since there's about a 99% overlap. Same for AT&T. T-Mobile won't be able to I don't think because that would put two major systems under ownership of a foreign company.
Having said that, Sprint isn't bankrupt...yet...one more write down like they did last year over Nextel though ($30B), and that could seal it.
Who might be the unlikely suitor then if the time arises?
Don't rule out TDS (Telephone and Data Systems, owner of US Celluar).05-09-09 09:06 AMLike 0 -
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I too am not trying to be abrasive, I was answering the question of if it would affect VZW customers, as asked by Budkiss:
You responded to me saying it would affect "existing subs"...I was simply ensuring clarification.And the at&t thing is news to ME.... maybe others
Should verizon customers in those areas be concerned about rate changes and service?
As to flaming me, never be afraid to do that, because I know this is the internet, and IDGAF...
05-09-09 09:11 AMLike 0 -
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Funny thing is, that there has been more banter about VZW buying US Cell then there has been buying SprintI don't think it will happen outside of bankruptcy. VZW would gain nothing, they'd have to divest, since there's about a 99% overlap. Same for AT&T. T-Mobile won't be able to I don't think because that would put two major systems under ownership of a foreign company.
Having said that, Sprint isn't bankrupt...yet...one more write down like they did last year over Nextel though ($30B), and that could seal it.
Who might be the unlikely suitor then if the time arises?
Don't rule out TDS (Telephone and Data Systems, owner of US Celluar).05-09-09 09:26 AMLike 0
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AT&T to buy territories from Verizon for $2.35B
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