Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Mobile Tech
Real-time info services with Neustar
Average Rating:
Rate this article:  
How Alltel Acquisition Helps AT&T
How Alltel Acquisition Helps AT&T

By Jennifer LeClaire
January 22, 2013 2:20PM

    Bookmark and Share
AT&T's $780 million Alltel buyout is the latest in a string of AT&T spectrum acquisitions. AT&T has also purchased Wireless Communications Service licenses via spectrum purchases from NextWave, SDG&E, Horizon and Comcast in the past year. AT&T can now cover 82 percent of the U.S. population.
 


AT&T on Tuesday announced an agreement to acquire wireless spectrum and assets from Atlantic Tele-Network. The wireless giant will pay $780 million in an all-cash deal to acquire Atlantic's wireless network and retail operations that operate under the Alltel brand in six states.

Under terms of the agreement, AT&T will acquire wireless properties, including licenses, network assets, retail stores. Alltel also adds about 585,000 subscribers to AT&T's customer base.

AT&T and Alltel are hardly strangers. AT&T bought $2.35 billion in Alltel wireless assets in 2009. That move came in the wake of Verizon's failed acquisition of Alltel and before AT&T's failed acquisition of T-Mobile.

What AT&T Gets

The Alltel U.S. network covers about 4.6 million people in primarily rural areas across six states -- Georgia, Idaho, Illinois, North Carolina, Ohio and South Carolina. The acquisition gives AT&T fast access to 700 MHz, 850 MHz and 1900 MHz bands and is largely complementary to AT&T's existing network.

Alltel operates a retail CDMA network for its subscribers in these areas. AT&T said expects that as it upgrades the network, Alltel customers and existing AT&T customers who roam in these areas will see a better mobile Internet experience.

AT&T expects integration costs for network conversion from CDMA will not result in significant dilution to earnings per share or hurt cash flow. The transaction is subject to review by the Federal Communications Commission and the Department of Justice and to other customary closing conditions, and is expected to close in the second half of 2013.

The Alltel buyout is the latest in a string of AT&T spectrum acquisitions. AT&T has also purchased Wireless Communications Service licenses via spectrum purchases from NextWave, SDG&E, Horizon and Comcast in the past year. AT&T can now cover 82 percent of the U.S. population.

AT&T's Alltel Attraction

Rob Enderle, principal analyst at the Enderle Group, told us AT&T's motivation is about acquiring resources, whether that's spectrum, buried fiber or access.

"If you are going to roll out a wired service or increase your coverage with wireless service you need to often buy the rights that are already there. The easiest way to buy the rights is to buy a company that already owns the rights," Enderle said.

Alltel, for its part, has been working to improve its network. The firm recently activated a new digital cell site in Georgia to improve voice and high speed data services in the area. The improvement was part of Alltel's multimillion-dollar investment to enhance its network and systems, continuing its commitment to improving service across the state of Georgia.

"Traditional phone companies are looking for access to homes," Enderle said. "You can use their cable to get access to the homes and then you can use that access to roll out your enhanced services to those homes. It's the same reason that cable companies buy other cable companies, is to get that access."
 

Tell Us What You Think
Comment:

Name:

mark:

Posted: 2013-01-22 @ 5:33pm PT
Verizon's FAILED acquisition of Alltel? That they completed years ago successfully?



Get Powerful App Acceleration with Cisco. In a world where time is money, you need to accelerate the speed at which data moves through your data center. Cisco UCS Invicta delivers powerful, easy-to-manage application acceleration for data-intensive workloads. So you can make decisions faster and outpace the competition. Learn More.


 Mobile Tech
1.   Android Hits 85% Market Share
2.   BBM Now Available on Windows Phone
3.   Smartphone Slowdown Hits Samsung
4.   Virgin Mobile Offers Custom Plans
5.   Asana Revamps Mobile App


advertisement
Android 'Fake ID' Puts Millions at Risk
Users: stick to apps from Google Play.
Average Rating:
Researchers Tout Battery Breakthrough
Lithium anode could triple capacity.
Average Rating:
Smartphone Slowdown Hits Samsung
Reports its worst quarter in two years.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Ruling Against Microsoft Raises E-Mail Privacy Concern
Microsoft has been ordered to hand over e-mails to law enforcers in the United States as part of a criminal investigation, even though the e-mail is stored at a data center in Dublin,Ireland.
 
Twitter Buys Password Manager Startup Mitro
Following on the heels of another acquisition earlier this week, Twitter is adding to its fold a password-manager security startup called Mitro, which in turn is releasing its code as open source.
 
Government Requests for Customer Data Skyrocket
Requests for customer data from the government jumped 50 percent in the first half of 2014, according to Twitter, which received more than 2,000 requests for user info from gov't agencies.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.