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AT&T Buying Verizon’s Alltel Assets
Monday, May 11th, 2009 at 8:05 AM - by Jeff Gamet
AT&T and Verizon have struck a US$2.35 billion deal that will give the U.S. iPhone partner an additional 1.5 million subscribers across 18 states. The deal helps Verizon comply with regulatory requirements linked to its purchase of rival cell carrier Alltel.
The agreement turns over Alltel licenses and network gear in 79 service regions from mostly rural areas, extending AT&T's coverage area into U.S. areas where it's had weak or no service availability.
AT&T said the subscribers it gets as part of the deal will be able to take advantage of the same services existing customers have such as 3G coverage and AT&T Wi-Fi hotspots. That might, however, take a little time since AT&T will have to deal with converting Verizon's CMDA gear to its own GSM technology.
Both companies are awaiting regulatory approval before closing the deal, and anticipate wrapping up the transaction before the end of 2009.
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