Advertisement
News
Advertisement

AT & T Pays $944M for Centennial

Mon, 11/10/2008 - 7:20am
Evan Koblentz. Wireless Week

AT&T is buying smaller GSM operator Centennial Communications for $944 million in cash, the company said late last week.

The addition brings 1.1 million customers and fortifies AT&T's coverage in rural parts of the Midwest, Southeast and in the Caribbean.  The deal is subject to regulatory approval and should be complete in the second quarter of 2009, officials said.

When shopping to expand, there weren’t many companies left for AT&T to acquire.  Verizon Wireless picked up Alltel, while T-Mobile would probably meet government objections because of its size.  Most other U.S. carriers are based on CDMA networks.

Centennial announced a first-quarter profit of $7.5 million ($0.07 per share) last month.

“They’ve been on the market for years,” but probably had a high asking price, industry analyst Roger Entner said, of Nielsen-IAG Research.

However, industry consolidation may still occur among CDMA operators.  Leap Wireless and MetroPCS will probably merge, Entner predicted.  U.S. Cellular may also be an acquisition target, he said.

More Broadband Direct:

• Motorola bows IPTV integration suite for service providers

• Insight builds on success in Q3

• GCI picks Verimatrix, CSI Digital for IPTV

• Ericsson brings IMS / IPTV middleware to TelcoTV

• Videotron deploys Openet's mediation platform

• Actiontec debuts xDSL gateway

• Vudu says its tops in online HD content

• AT&T Pays $944M for Centennial

• Ethernet Microwave Coming to North America

• Dish Network 3rd-quarter profit slides 54 percent

• Nortel reports Q3 loss; cuts to come

• Broadband Briefs for 11/10/08

Advertisement

Share This Story

X
You may login with either your assigned username or your e-mail address.
The password field is case sensitive.
Loading