Thursday, June 28, 2007

AT&T to Acquire Cellular One for $2.8 Billion

AT&T agreed to acquire Dobson Communications, which markets itself under the Cellular One brand, for approximately $2.8 billion in cash.

Dobson Communications operates in more than 60 wireless markets in 17 states, covering a population base of over 12.4 million and serving 1.6 million subscribers. It is the largest wireless provider in Alaska. It uses both TDMA and GSM/GPRS/EDGE technologies.

In addition to Alaska, Dobson's network covers rural and suburban areas in Arizona, Illinois, Kansas, Kentucky, Maryland, Michigan, Minnesota, Missouri, New York, Ohio, Oklahoma, Pennsylvania, Texas, Virginia, West Virginia and Wisconsin.

The companies said Dobson's network overlaps minimally with AT&T's. Additionally, Dobson's 850 MHz spectrum will enhance AT&T's service quality in those rural and suburban markets.

Following the acquisition, Dobson will be incorporated into AT&T's wireless operations, which are led by Stan Sigman, president and chief executive officer AT&T Mobility.

"This acquisition is an excellent fit for AT&T," said Sigman. "We've worked with Dobson for years. It's a good company, with great people, the same GSM/EDGE technology and coverage that dovetails almost perfectly with our own. We welcome the opportunity to serve Dobson's customers and look forward to a smooth transition thanks to Dobson's strong leadership and employee team."http://www.att.com