AT&T Inc. has announced a definitive agreement with Verizon Wireless to conduct a swap of wireless assets.
Under the terms of the agreement, AT&T will acquire -- upon Verizon's acquisition of Rural Cellular Corporation -- some former Rural Cellular properties, including licenses, network assets and subscribers, in the Burlington, Vt. metropolitan service area and in rural service areas (RSAs) in New York (RSA-2), Vermont (RSA-1, RSA-2B1) and Washington (RSA-2, RSA-3). AT&T will also acquire a cellular license from Verizon in Kentucky RSA-6.
Also under terms of the agreement, Verizon will acquire from AT&T some former Dobson Communications Corporation properties, including licenses, network assets and subscribers, in Kentucky RSA-6 and RSA-8. Verizon will also acquire 10 MHz of PCS spectrum in a number of markets and receive an additional cash consideration from AT&T.
As required, AT&T has also agreed to sell the Cellular One brand to Trilogy Partners. In addition, to fulfill the remaining divestiture requirements, AT&T has entered into a separate agreement with MTPCS, LLC to sell the former Dobson property, including licenses, network assets and subscribers, in Texas RSA-10 and AT&T's share of the former Dobson partnership holding licenses, network assets and subscribers in portions of Oklahoma RSA-5. Together, these transactions satisfy AT&T's divestiture requirements related to its recent acquisition of Dobson.
The transaction with Verizon will extend AT&T's coverage and services in New York, Vermont, the state of Washington and Kentucky. Consumers in those markets will gain access to the nation's largest digital voice and data network. AT&T's fully integrated GSM network covers more than 290 million people in 13,000 U.S. cities and towns.
All transactions were signed on December 3, 2007, and are contingent upon regulatory approval and are expected to close by mid-2008.