AT&T Moves to Buy Alltel for $780 Million
If you guys remember, back in 2011, one of the big news stories in the US, was AT&T's attempted buyout of T-Mobile. That deal was derailed by industry watchdogs and the Federal Government because it would have very likely created a far less competitive carrier ecosystem. Even though that buyout died, it looks like AT&T is still doing it's best to gobble up smaller carriers. Luckily, today's news is not nearly as menacing as the previous buyout attempt. AT&T is moving forward with a planned purchase of the smaller Alltel wireless company, and plan to acquire it for $780 Million dollars. Here's a quote with some of the details,
More than likely this deal will easily pass regulatory scrutiny, since Alltel is a much smaller fish, and won't create a virtual monopoly between titans like the previous deal would have. What do you guys think? Just life in the big wireless ocean?
AT&T will buy Alltel’s wireless business for a cool $780 million in cash. That means that AT&T will get Alltel’s licenses, network assets, and retail stores – essentially the entirety of the wireless carrier known as Alltel. AT&T will also be getting Alltel’s 585,000 subscribers, of course.
Alltel operates primarily in rural areas in Georgia, Idaho, Illinois, North Carolina, Ohio, and South Carolina, and this buyout will help AT&T improve its coverage and spectrum in those areas. The company even mentioned that the acquired spectrum is “largely complementary” to its existing network. It expects voice services as well as the mobile internet experience in these areas to become significantly better for its customers if the buy is approved by the FCC and DOJ.