Home » Uncategorized » AT&T Wireless to Buy U.S. Cellular Network

AT&T Wireless to Buy U.S. Cellular Network

CHICAGO — United States Cellular Corporation today announced that it has entered into a definitive agreement to sell certain wireless properties to AT&T Wireless Services, Inc. of Redmond, Wash. for $95 million in cash, subject to certain closing provisions. The transaction is subject to regulatory approval and is expected to close in the first quarter of 2004.

The U.S. Cellular assets to be sold to AT&T Wireless include 25 MHz Metropolitan Statistical Area (MSA) and Rural Service Area (RSA) licenses representing 1.3 million population equivalents, approximately 150 cell sites and 74,000 customers. For the nine months ending Sept. 30, 2003, total U.S. Cellular revenue from these markets was $45 million.

The markets to be sold include MSA operations in Corpus Christi, Laredo and Victoria, Texas, as well as RSA operations in Texas RSA 18, 19 and 20. A complete list of the licenses can be found in Exhibit A. A map illustrating the properties to be sold is available at http://www.teldta.com/whatsnew/feature112003.html .

John E. Rooney, president and chief executive officer of U.S. Cellular, commented, “This transaction is further affirmation of our strategy to exit markets that are not strategic to the company’s long-term success. These properties, while valuable in their own right, neither complement the geographic footprint of the company nor strengthen its competitive position in its larger, more well-established markets.

“Proceeds from the sale may be used to reduce debt or offset the cost of building out several of the new markets we acquired recently from AT&T Wireless in another transaction or to fund spending requirements related to our technology upgrade to CDMA 1XRTT,” said Rooney.

Falkenberg Capital Corporation of Denver, Colo. represented U.S. Cellular in the transaction.

As of Sept. 30, U.S. Cellular Corporation, the nation’s eighth largest wireless service carrier, provided wireless service to nearly 4.3 million customers in 141 markets throughout 25 states. The Chicago-based company operates on a customer satisfaction strategy, meeting customer needs by providing a comprehensive range of wireless products and services, superior customer support and a high-quality network.

About Fabrizio Pilato

Check Also


Try Oculus Rift And Wii To Roam Around On The Back To The Future Hoverboard

Check out how you can fly in virtual space by using an Oculus Rift and a Wii Balance Board.


Amazon Appstore for Android Holiday Deals, Including Free Apps

There are tons of deals from the Amazon Appstore that will be offered starting now and throughout the holiday shopping season. They say that they will have "hundreds of titles that are eitehr free... or available between 50-90% off" the regular price.


Black Friday: Google Play Store Apps, Games and Content on Sale All Weekend

Case in point, if you head over to the Google Play Store right now, you'll find that Google is celebrating all Cyber Weekend with discounts on all sorts of content. This includes many popular apps and games


Black Friday Deal: Samsung Galaxy Tab 3 10.1-Inch for $100 Off

Did you manage to score any epic Black Friday deals this morning? Are you still ...


Arduino Co-Creator Releases Plans for $200 DIY Mobile Phone

Mellis was one of the people who came up with the now hugely popular Arduino platform and now he has come up with plans for people to build their own cell phone for about $200 in parts.


No Discounts for Apple Black Friday, Just Free Gift Cards

If you were hoping to save yourself some cash as you brave the Black Friday shopping crowds, you'll want to go somewhere other than the official Apple Stores.