Alltel Buys Old AT&T Wireless Spectrum
Alltel (AT) - Get Atlantic Power Corporation Report has agreed to pay Cingular $170 million for portions of the former AT&T Wireless business in six states as part of a mandated divestiture.
To gain approval for its $41 billion buyout of AT&T Wireless last month, federal regulators required Cingular to sell wireless properties in 13 cities in 11 states where Cingular and AT&T Wireless have overlapping networks.
Cingular, a joint venture between
SBC
(SBC)
and
BellSouth
(BLS)
, is now the nation's largest cell-phone service provider with about 47 million subscribers. No. 2 wireless telco
TheStreet Recommends
Verizon Wireless
-- a joint venture between
Verizon
(VZ) - Get Verizon Communications Inc. Report
and
Vodafone
(VOD) - Get Vodafone Group Plc Report
-- has more than 40 million customers.
Alltell will purchase radio wave spectrum and network assets in Oklahoma City and Grant, Okla.; Sherman-Denison and Jack, Texas; Owensboro and Fulton, Ky.; Litchfield, Conn.; Yalobusha, Miss.; Wichita, Kan.; and several counties in Georgia and Texas.
In early trading Friday, SBC shares rose 14 cents to $25.50, BellSouth was up 22 cents to $27.28 and Alltel was up 49 cents to $56.88.
