Posts filed under ‘Alltel’

AT&T Offering Phones, BlackBerrys On Rural Spectrum (USA)

AT&T announced that the 1.5 million subscribers it will acquire from Verizon Wireless will be shifted from Verizon’s CDMA network to AT&T’s GSM network within 12 months of the deal’s completion. The assets were previously owned and managed by Alltel, which was acquired by Verizon Wireless earlier this year for $28.1 billion. AT&T, which will pay $2.35 billion for the assets, said it will spend another $400 million on the switchover. The AT&T-Verizon deal is expected to close in the fourth quarter of 2009, AT&T said. Subscribers in the mostly rural regions will be able to receive mobile broadband on AT&T smartphones, including iPhones and BlackBerry Bolds, after the transition is completed, the company indicated in an announcement late Friday. In a smaller deal in the wireless-infrastructure musical chairs exercises between the two largest U.S. wireless carriers, AT&T said it will sell some wireless assets of Centennial Communications to Verizon Wireless.

Wireless Industry News


May 13, 2009 at 20:31 1 comment

AT&T to acquire mobile assets from Verizon Wireless (USA)

AT&T has agreed to acquire mobile assets from Verizon Wireless for USD 2.35 billion in cash. AT&T will acquire mobile properties, including licences, network assets and 1.5 million current subscribers in 79 service areas, primarily in rural areas across eighteen states. Verizon Wireless is required to divest these properties as part of the regulatory approvals granted for its purchase of Alltel earlier this year. The states represented are Alabama, Arizona, California, Colorado, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, South Dakota, Tennessee, Utah, Virginia and Wyoming. While the transaction primarily represents former Alltel assets, but it also includes assets from Verizon Wireless and the former Rural Cellular. AT&T expects integration costs for network conversion, amortisation of intangible assets and subscriber migration to result in dilution to EPS of approximately USD 0.06 per share in the first year after closing and to improve thereafter. Network conversion from Verizon’s CDMA network to GSM technology and transition of the operations to AT&T is expected to take no longer than 12 months from the date the transaction closes and to result in an additional planned capital investment of approximately USD 400 million over 2009 and 2010. The transaction is contingent upon regulatory approval and is expected to close in the fourth quarter. AT&T has also agreed to sell certain mobile assets of Centennial Communications to Verizon Wireless for USD 240 million.

Wireless Industry News

May 11, 2009 at 23:11 Leave a comment

Alltel continues with services until buyer found

US cellular operator Alltel has confirmed that it is continuing to provide services to the 2.2 million customers in 22 states which Verizon Wireless has agreed to divest under the terms of its USD28.1 billion acquisition of Alltel. Alltel says these subscribers will have no change to their services while a buyer for the networks is sought. Verizon leapfrogged AT&T to take the number one spot in the US wireless market when it bought out Alltel; AT&T is hoping to close the gap by acquiring the operations in the markets now being divested. These have been valued at around USD3 billion.

Wireless Industry News

February 11, 2009 at 16:57 Leave a comment

AT&T seeks Verizon Wireless assets?

AT&T is intending to bid for around USD3 billion worth of Verizon Wireless assets reported the Wall Street Journal (WSJ). Verizon must sell off the assets as a condition set in the approval of its USD28.1 billion acquisition of Alltel which was completed last month. The assets include 2.1 million mobile subscribers across 22 states, wireless spectrum and other resources.

Other interested parties include a joint bid from private-equity firms Carlyle Group and Kohlberg Kravis & Roberts & Co; Providence Equity Partners LLC; and possibly at least one cable provider. AT&T is in the strongest financial position of all the potential bidders and should acquire the lion’s share. However, Gigi Sohn, president of the public interest group Public Knowledge, said the government should encourage Verizon to sell the assets to smaller players to enhance competition. The Department of Justice said it would examine affected markets and any competitive issues before giving its approval to the divestitures.

Wireless Industry News

February 5, 2009 at 17:04 Leave a comment

Verizon Communications reports 15.2% increase in Q4 net profit

Verizon Communications has reported a 15.2% increase in its net profit for the fourth quarter of 2008 to USD1.24 billion, with the growth driven largely by the cellular unit Verizon Wireless. Revenues for the quarter were up 3.4% at USD24.65 billion. Sales at the wireless unit rose 12.3% year-on-year to reach USD12.8 billion, with 1.2 million retail net subscriber additions taking its total customer base to 72.1 million. This will rise to over 80 million once subscribers of newly acquired Alltel Corp are transferred to the Verizon Wireless network. The fixed line division lost 911,000 customers in the final three months of 2008 and the ADSL broadband subscriber base also fell, losing 68,000 users. This was offset by growth at the FiOS fibre-optic broadband business, where 282,000 net new customers were added, taking the total to almost 2.5 million.

For the full year 2008 Verizon reported revenues of USD97.35 billion, up 4.2% on the 2007 figure. Consolidated net income was up 16.4% at USD6.43 billion. Capital expenditures totalled USD17.2 billion in 2008 compared with USD17.5 billion the previous year. ‘Verizon has shown that it is able to compete effectively in this economic environment,’ said Chairman and CEO Ivan Seidenberg. ‘We grew profits and maintained strong cash flows throughout 2008. In the fourth quarter, we continued to produce top-line growth, fuelled by strong sales volumes for broadband, wireless and strategic business services.’

Wireless Industry News

January 28, 2009 at 17:24 Leave a comment


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