Verizon Wireless Divests 800K Subs to ATN
Posted by Jesse Ward on Monday, June 15, 2009 · 
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Verizon Wireless has sold Alltel Corp.-related assets to Atlantic Tele-Network Inc. (ATN) for $200 million.
Under terms of the agreement, Salem, Mass.,-based ATN will acquire wireless properties, including wireless spectrum licenses and network assets, serving more than 800,000 subscribers primarily in rural areas across Georgia, North Carolina, South Carolina, Illinois, Ohio and Idaho. Verizon Wireless is required to divest these properties as part of the regulatory approvals granted for its purchase of Alltel earlier this year.
The acquisition is subject to customary closing conditions and regulatory approvals. ATN expects the transaction to close in the third or fourth quarter of 2009.
“This is a very attractive transaction for ATN and it accomplishes what we have been patiently seeking over the past few years,” said Michael Prior, ATN’s president and chief executive officer. “It provides ATN with enhanced scale and revenue diversification and enables us to expand meaningfully our U.S. wireless business.” After the transaction closes, ATN will have wireless operations in rural areas of more than 10 states.
Verizon already has sold the bulk of the assets it was required to divest to AT&T Inc. AT&T is spending $2.35 billion to buy 79 of the 105 licenses Verizon has to let go.
Verizon has asked the FCC to give it until July 8 to sell the remaining licenses. Many different bidders have expressed interested in the spectrum.
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