NTELOS To Buy Allegheny Network For $27 Million

WAYNESBORO, Va. (AP) — Wireless phone service provider NTELOS Holdings Corp. said Tuesday it agreed to purchase Allegheny Communications Connect from Allegheny Energy Inc. for $27 million.

The Allegheny subsidiary owns and runs a fiber optic network mostly in Pennsylvania and West Virginia with parts in Maryland, Kentucky and Ohio, extending some 2,200 miles.

NTELOS Executive Vice President Frank Berry said the acquisition helps reposition the company's wireline business from providing voice access lines to providing high-bandwidth data products.

NTELOS said it expects the network to generate $8 million in revenue and $4.5 million operating profit this year. The company said because it is a customer on the network, it will save $500,000 annually upon closing.

The deal is expected to close by the end of the year subject to regulatory approvals and customary closing conditions.

NTELOS shares rose 38 cents, or 2.2 percent, to $17.75 in afternoon trade, while Allegheny shares gained 17 cents to $26.05.