AT&T, Verizon Wireless agree to sell and swap assets
By Dusan Belic on Monday, May 11th, 2009 at 1:43 AM PST In AT&T, Announcements, Verizon
AT&T (NYSE: T) issued a press release announcing its intent to purchase certain Alltel assets as well as some Verizon (NYSE: VZ) and Rural Cellular assets from Verizon Wireless. Under the terms of the deal, AT&T will pay $2.35 billion to acquire licenses, network assets and 1.5 million subscribers in 79 regions which include rural areas of Alabama, Arizona, California, Colorado, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, South Dakota, Tennessee, Utah, Virginia and Wyoming.
The problem, though, is that Alltel’s network relies on CDMA technology, whereas AT&T uses GSM and we’re not sure what will AT&T do about it — they haven’t unveiled details of the transition. They did, however, said the complete AT&T offering (devices, 3G services and WiFi hotspots) will be available to newly acquired customers.
On the other side, AT&T agreed to sell some Centennial Communication assets to Verizon for $240 million in an effort to prevent overlap in some regions. With this deal, Verizon will get about 120,000 subscribers in Louisiana and Mississippi…
[Via: PhoneScoop]
