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Nov. 10, 2008

AT&T confirms that it has acquired Centennial Communications for $944 million in cash.

When the deal closes, AT&T will add 1.1 million Centennial customers to its current customer base of 74.9 million.

The deal won't help AT&T regain the top spot in the U.S. market however. Although the carrier currently holds the position, it will soon lose it to the combination of Verizon Wireless with 70.8 million customers, and Alltel Communications with 13 million customers.

Additionally, AT&T added that the acquisition would enhance its coverage in the rural areas of the Midwest and Southeast U.S., in Puerto Rico and also in the U.S. Virgin Islands.

AT&T said it hopes to obtain the necessary FCC and other regulatory approvals for this new acquisition by the second quarter of 2009.

Ralph de la Vega, CEO of AT&T Mobility said "overall, wireless is a vital investment area for AT&T and constitutes our company's biggest growth driver. This acquisition further enhances our network coverage for our consumer and business customers, and is largely expected to create long-term value for all AT&T's shareholders.”

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Source: AT&T.