AT&T to buy rural carrier Alltel for $780 million

AT&T announced today that it intends to buy regional wireless carrier Alltel for $780 million. As part of the deal, AT&T will receive Alltel’s 585,000 subscribers and the carrier’s assets including its retail stores, wireless licenses and networking infrastructure.

This purchase will boost AT&T’s coverage in rural areas that are covered by Alltel, These areas include Georgia, Idaho, North Carolina, Ohio and South Carolina. AT&T will also get access to  spectrum in the 700 MHz, 850 MHz and 1900 MHz bands, which are complimentary to AT&T current GSM service. Alltel’s service, however, is CDMA-based and AT&T plans upgrade the network. The carrier says this conversion process “will not result in significant dilution to EPS or impact to cash flow.”

The transaction must be approved by both the Federal Communications Commission and the Department of Justice. Both AT&T and Alltel expect to close the deal in the second half of 2013.

[Via AT&T]

  • http://twitter.com/gadgetman Marc Kleinmaier

    Huh? Verizon Wireless already purchased Alltel back in 2008. It was this move that turned VZW into the nation’s largest operator.

  • http://twitter.com/gadgetman Marc Kleinmaier

    Huh? Verizon Wireless already purchased Alltel back in 2008. It was this move that turned VZW into the nation’s largest operator.

  • http://twitter.com/gadgetman Marc Kleinmaier

    Verizon Wireless already purchased Alltel back in 2008. It’s that deal that turned VZW into the nation’s largest operator. What AT&T just announced, is the purchase of some outstanding spectrum assets that VZW was forced to divest in order for the acquisition of Alltel to be approved by regulators.

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