AT&T and Verizon Sitting in a Tree, D-U-O-P-O-L-Y
by John Paczkowski
Posted on May 11, 2009 at 6:32 AM PT
AT&T has beaten out some 30 telecommunications carriers and private equity groups to buy the wireless spectrum and other assets that rival Verizon Communications was required to divest as a condition of its recent acquisition of Alltel Wireless. AT&T said this weekend that it will pay $2.35 billion in cash to buy licenses, network assets and some 1.5 million wireless subscribers across 18 states, mostly in rural areas. “Wireless continues to be AT&T’s greatest growth driver, and this transaction will complement our existing network coverage, particularly in rural areas,” said Ralph de la Vega, president and CEO, AT&T Mobility and Consumer Markets. “The acquisition will add network assets, distribution channels and 850 MHz spectrum in a significant portion of the U.S., enabling even better coverage for AT&T’s subscribers in those areas.”
The deal will put AT&T (T) that much closer to parity with Verizon (VZ), which surpassed AT&T to become the largest wireless carrier after its January acquisition of Alltell. Together, the two account for about 60 percent of all U.S. cellular subscribers.
[Image Credit: IntoMobile]
Comments
AT&T… didn’t that used to be Motel 6?
Seriously it’s almost impossible to keep track of these companies constantly merging with old well known, but failed, enterprises and taking on their name.
It’s also too bad that in the technology space the winners and losers seemed to be determined more by these back-room exclusive deals (AT&T-Apple, Amazon-Sprint, Microsoft-Intel) than by actual quality of service to individual customers. That latter relationship will ultimately make a difference and individuals who feel they have been conspired against by their vendors of choice may well shy away from being burned twice.
Of course people like me who hold a grudge these days can quickly scratch everyone off their list. Are there ANY good guys out there?
Posted by Mac Beach at May 11th, 2009 at 1:24 pm