Thursday, April 3, 2008

CenturyTel Pursues Overlay of Existing Operations in 700 MHz

CenturyTel, which was the successful bidder for 69 licenses in the FCC's recent 700 MHz auction, said the newly-acquired spectrum will create a highly contiguous footprint that closely overlaps its existing local exchange and long-haul fiber networks. CenturyTel serves small-to-mid-size cities in 25 states. Key markets include Arkansas, Louisiana, Montana, Ohio, Alabama, Colorado, Illinois, Michigan, Missouri, Oregon and Wisconsin.

The spectrum is being acquired at an average price per megahertz pop of $.70 and a total cost of $149 million. CenturyTel said it is paying an overall average price per MHz Pop of $.70 versus $1.92 national average for A & B blocks combined.

"While it is too early to discuss financial and operational details, we are acquiring spectrum that overlaps our core ILEC and fiber transport networks. This should enable us to utilize our existing operations, including our current distribution and technical support infrastructure, to cost-effectively deploy wireless services, both in our existing markets and in selective contiguous markets, where we believe profitable growth is achievable," said Glen F. Post, III, chairman and chief executive officer.

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