AT&T will acquire Alltel, the mobile operator owned by Atlantic Tele-Network, Inc. (ATNI), for $780 million in cash.
The deal includes wireless licenses, wireless properties, network assets, retail stores and approximately 585,000 subscribers. This business generated revenues for the first nine months of 2012 of approximately $350 million.
Alltel operates a CDMA network covering approximately 4.6 million people in primarily rural areas across six states — Georgia, Idaho, Illinois, North Carolina, Ohio and South Carolina.
Once the network is upgraded to 4G, AT&T said the Alltel assets will be complementary to its own network. Alltel’s spectrum is in the 700 MHz, 850 MHz and 1900 MHz bands.
“We are pleased that AT&T recognizes the value of our U.S. wireless retail operations and is acquiring these assets,” said Michael T. Prior, Chief Executive Officer. “Alltel’s customers will benefit from access to a nationwide 4G network, a larger device selection, additional retail locations and a broader range of product offerings. Additionally, many of our employees should benefit from new career opportunities within AT&T. We will work closely with AT&T to close the transaction and to ensure a smooth transition for our customers and employees.”
http://www.alltelwireless.com/
- The current Alltel brand, which is owned by Atlantic Tele-Network, was formed in early 2010 following ATNI’s acquisition of wireless properties, licenses and network assets from Verizon Wireless, which was required by the FCC to sell these coverage areas.
- In January 2009, Verizon Communications acquired the original Alltel Corporation for approximately $5.9 billion. The FCC and the Department of Justice required Verizon to divest assets in 100 areas in 22 states to win approval for the deal.
- The original Alltel traced its heritage back to the foundation of the Allied Telephone Company in Arkansas in 1943.