Under the terms of the agreement, AT&T will acquire licenses, network assets and subscribers of Verizon owned Rural Cellular in the Burlington metropolitan service area and in rural service areas in New York, Vermont and Washington. Further, AT&T said that it will also gain a cellular license from Verizon in Kentucky.
Meanwhile, Verizon will get some of Dobson Communications’ licenses, network assets and subscribers in Kentucky from AT&T. Verizon will also receive 10 MHz of personal communications service spectrum for wireless services in some markets.
AT&T has also agreed to sell Dobson’s Cellular One brand to Trilogy Partners following the completion of the acquisition. Federal regulations required AT&T to divest certain licenses, network assets and subscribers formerly controlled by Dobson in several rural markets, including Kentucky, Texas and Oklahoma.
AT&T and Dobson operate a GSM network, while Verizon operates a CDMA network. Rural Cellular uses both CDMA and GSM technology.
AT&T acquired Dobson for $2.8 billion in cash and gained 1.7 million subscribers in November. The company added that the swapping of wireless assets with Verizon will widen its coverage and services in New York, Vermont, Washington and Kentucky.
The agreement is expected to be completed by the middle of next year.
Source: ComputerWire daily updates
