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View Full Version : AT&T to buy areas of Verizon/Alltel network


Wraith
05-11-2009, 12:07 PM
Verizon/Alltel agreed to give up several markets to other carriers as a condition of their merger. AT&T recently announced (http://www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=26803) that it plans to buy a large portion of these divested markets for $2.35 billion.AT&T today announced a definitive agreement to acquire wireless assets from Verizon Wireless for $2.35 billion in cash. Under terms of the agreement, AT&T will acquire wireless properties, including licenses, network assets and 1.5 million current subscribers in 79 service areas, primarily in rural areas across 18 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.

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After operations transition to AT&T, the primarily rural subscribers added through this transaction will be able to experience mobile broadband on all the smartphones AT&T offers.

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The transaction is contingent upon regulatory approval and is expected to close in the fourth quarter of 2009.A map of the divested areas can be found here (http://www.howardforums.com/showthread.php?t=1455277) (in red and dark blue). Apparently U.S. Cellular is interested in some of the remaining markets that AT&T isn't picking up.

cppcrusader
05-11-2009, 12:27 PM
So...does this mean Verizon customers in those areas now become AT&T customers and have to buy new phones?

Wraith
05-11-2009, 12:34 PM
So...does this mean Verizon customers in those areas now become AT&T customers and have to buy new phones?I'd assume so, especially since AT&T is GSM and Verizon/Alltel are CDMA. Maybe they'll have some program for existing customers so they don't have to shell out so much to replace their phones.

Verizon/Alltel will keep providing service until AT&T is ready to take over (which sounds like it won't be until late this year/early next).

Shadowstorm
05-11-2009, 12:37 PM
Ugh, damnit.

PathMaster
05-16-2009, 08:34 PM
I would assume they grabbed just the tower spots and that other coverage exists for those areas. That is what they did around here. Verizon lost sites, but still had coverage. Still sucks mind you, service gets worse for VZ customers.

Brady
05-18-2009, 07:29 PM
I'm pretty sure what really happens is AT&T would now own those towers. They are still available to use for the VZW/Alltel people though, Verizon basically would have to pay a lease to AT&T to continue to use the towers they built.

I doubt anything will really change for any customers in the affected areas, it will really just change the flow of money.