Monday, May 11, 2009
AT&T and Verizon Sitting in a Tree, D-U-O-P-O-L-Y
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. The company 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.
Verizon may well want to add the iPhone to its mobile device lineup but it’s doing perfectly well without it. The company posted earnings this morning that bested analyst estimates thanks to a strong wireless business that continues to compensate for its declining wireline division. 
So much for last year’s $27.5 billion privatization of Alltel …Verizon Communications (VZ) will acquire Alltel, the nation’s fifth largest wireless-phone company, for $28.1 billion. 
