|Cingular Wireless and NextWave Telecom Close Transaction|
Posted: 12-Apr-2004 [Source: Cingular]
[Cingular closes deal on acquisition of 34 PCS licenses from NextWave covering approximately 83 million potential customers.]
Atlanta and Washington -- Cingular Wireless and NextWave Telecom Inc. announced today the closing of Cingular's acquisition of 34 PCS licenses from NextWave. The licenses, covering approximately 83 million potential customers, are for spectrum primarily in markets where Cingular currently has voice and data operations.
"Closing this transaction is a significant milestone for Cingular," said Ralph de la Vega, chief operating officer for Cingular Wireless. "This spectrum will greatly benefit our customers, allowing us to deliver additional products and services, expand coverage in key markets and better accommodate overall future growth."
"Today's closing is a very important event for NextWave," said Allen Salmasi, Chairman and CEO of NextWave Telecom. "It strengthens NextWave's capitalization and positions the company to complete its reorganization."
Under terms of the deal, Cingular paid $1.4 billion in cash, and obtained FCC licenses to operate on 10 MHz of broadband PCS (1900 MHz) spectrum in the following markets: Los Angeles, CA; Chicago, IL; San Francisco, CA; Dallas, TX; Houston, TX; Washington, DC; Atlanta, GA; Boston, MA; San Diego, CA; Baltimore, MD; Portland, OR; Sacramento, CA; Las Vegas, NV; Salt Lake City, UT; Allentown, PA; Harrisburg, PA; Springfield, MO; Sarasota, FL; Manchester, NH; Portland, ME; Lakeland, FL; York, PA; Lancaster, PA; Poughkeepsie, NY; Reading, PA; Hagerstown, MD; Temple, TX; Gainesville, FL; Tyler, TX; Joplin, MO; Salisbury, MD; and Kankakee, IL. Cingular also obtained FCC licenses to operate on 20 MHz in the 1900 MHz band in Tampa, FL and El Paso, TX.
Cingular currently provides service in all of these markets except for Portland, OR; Salt Lake City, UT; El Paso, TX; Manchester, NH; Hagerstown, MD; Salisbury, MD; and Kankakee, IL.
All claims of the FCC and third parties related to these 34 licenses have been satisfied, including $714 million owed by NextWave to the FCC for these licenses, which was paid directly to the FCC out of the $1.4 billion total.
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