AT&T/Verizon Swap Frequencies

AT&T/Verizon Swap Frequencies

Posted by Sam Churchill on December 22nd, 2008

AT&T announced today that they have finalized a swap of wireless assets with Verizon Wireless, following regulatory approval from the FCC and Department of Justice. The asset swap extends AT&T Mobility’s coverage in New York, Vermont, Washington State and Kentucky while Verizon got cash and some AT&T frequencies

Under the terms of the agreement, AT&T Mobility acquired some properties owned by former Rural Cellular Corporation and acquired by Verizon Wireless. They are in Burlington, Vt. and in rural service areas (RSAs) in New York (RSA-2), Vermont (RSA-1, RSA-2) and Washington (RSA-2, RSA-3). AT&T also acquired a cellular license from Verizon Wireless in portions of Kentucky RSA-6.

The former Dobson Communications, now a part of AT&T, traded some properties with Verizon, including licenses, network assets and subscribers, in Kentucky RSA-6 and RSA-8. Verizon Wireless also acquired 10 MHz of PCS spectrum in a number of areas for cash.

These transactions satisfy the divestiture requirements related to AT&T Mobility’s acquisition of Dobson last year. This agreement was signed on Dec. 3, 2007, and received final regulatory approval on Dec. 18, 2008.

Verizon Wireless announced earlier this year that it will buy the fifth largest cellular operator in the United States, Alltel for $5.9 billion.

Alltel has 13.2 million subscribers in 34 states, mainly in rural areas away from the coasts which would be added to Verizon Wireless 67.2 million subscribers. The size of the combined company would have more than 80 million customers, surpassing AT&T, currently the largest U.S. cellular provider, with some 71.4 million subscribers.

AT&T has mostly held the lead for total wireless subscribers since merging with Cingular back in 2004. AT&T bought Dobson for $2.8 billion last year. Dobson had 850MHz spectrum in rural areas. Verizon Wireless bought Rural Cellular Corp. for $2.67 billion in 2007. Verizon Wireless also plans to expand its wireless coverage in rural areas.

Both AT&T and Verizon may plan on getting subsized by U.S. taxpayers using the Universal Service Fund and their new 700 MHz frequencies.

source : dailywireless.org