Under the terms of the deal, AT&T will acquire the company's retail wireless operations in this country, which includes nearly 600,000 paying customers and, more importantly, a whole bunch of spectrum. Alltel currently has chunks of the 700, 850 and 1900 MHz cellular frequencies.
Alltel reportedly covers nearly 4.6 million people in a number of primarily rural areas in Georgia, Idaho, Illinois, North Carolina, Ohio and South Carolina.
That's the good news. But, there's a slight catch. While the 850 and 1900 MHz bands are compatible with current AT&T operations, Alltel uses the CDMA data standard, while AT&T's nationwide network uses GSM technology. According to the press release:"AT&T expects that as it upgrades the network, ATNI customers and existing AT&T customers who roam in these areas will enjoy an enhanced mobile Internet experience." That also means that current Alltel customers should expect to purchase new GSM-based handsets in the near future. AT&T says it expects the integration of Alltel services "will not result in a significant dilution to EPS or impact cash flow." Pending the FCC review, AT&T hopes to complete the deal later this year. --Written by Gary Krakow in New York. >To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV