The acquisition will provide AT&T with network operations of rural GSM and enhanced data rates for global evolution (EDGE) in 17 states including Illinois, Kentucky, Michigan, Texas and Wisconsin. Dobson is an existing roaming partner for AT&T with 1.7 million customers and operates in the 850 MHz range.
With the addition of Dobson, AT&T’s GSM network will cover more than 290 million people in 13,000 US cities and towns. The addition of Dobson’s 850 MHz spectrum will also enable it to further expand its 3G GSM technology throughout the US. AT&T obtained the approvals from the Department of Justice (DoJ) and the Federal Communication Commission according to which it can divest assets of Dobson in four primary rural areas in the US.
The company expects to complete the re-branding of Dobson by December 9, 2007. The net present value of potential synergies between the companies is approximately $2.5 billion including reduction of roaming and savings in overhead and operations.
Source: ComputerWire daily updates
