Add to del.icio.us     Digg this

Dec. 5, 2007

Overall, Verizon Wireless' acquisition of Rural Cellular Corp. will probably create a certain domino effect.

Verizon Wireless and AT and T have decided in swapping specific wireless assets.

After Verizon closes its acquisition of RCC, AT&T will acquire some former Rural Cellular properties, including licenses, network assets and subscribers, in the Burlington Vermont metropolitan service area, and in rural service areas in New York, Vermont and Washington, according to the terms of an agreement between Verizon Wireless and AT&T.

The phone giant will also acquire a cellular license from Verizon in Kentucky.

Additionally, Verizon said it will acquire from AT&T some former Dobson Communications properties, including licenses, network assets and subscribers in Kentucky.

In addition to that, it will also buy 10 MHz of PCS spectrum in a number of rural markets for an additional sum of cash.

The net effect of this swap will fulfill divestiture requirements for AT&T's recent purchase of Dobson.

AT&T has also agreed to divest itself of the Cellular One brand to Trilogy Partners, as well as entered into a separate agreement with MTPCS to sell the former Dobson property in rural areas of Texas and Oklahoma.

The transaction with Verizon will extend AT&T's coverage and services in New York, Vermont, Washington and even Kentucky.

AT&T's swap with Verizon is contingent upon the FCC's regulatory approval and is expected to close some time in June or July 2008.

The phone giant also announced that, through an affiliate, it has agreed to acquire Edge Wireless, a regional wireless company with about 172,000 subscribers operating in several markets in the Pacific Northwest.

This acquisition is subject to the FCC's green light, and is expected to also close in the middle of next year.

Under the terms of the agreement, AT&T, which has held a minority ownership interest since Edge Wireless' inception more than seven years ago, will acquire the remaining 64.29 percent of the company.

Add to del.icio.us     Digg this

Source: Wireless Week