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July 03, 2007
AT&T to Acquire Dobson to Expand Wireless Coverage
By Niladri Sekhar Nath TMCnet Contributing Editor
AT&T (News - Alert) Inc. is set to acquire Dobson Communications Corporation, a provider of rural and suburban wireless communications services. The acquisition is expected to improve AT&T's wireless network coverage in the United States by uniting the two companies' complementary networks.
Dobson, which offers wireless service under the Cellular One brand, has provided roaming
service to AT&T and predecessor companies since 1990. With this combination, AT&T will be able to deliver a better customer experience to its wireless customers, including Dobson's 1.7 million subscribers.
service to AT&T and predecessor companies since 1990. With this combination, AT&T will be able to deliver a better customer experience to its wireless customers, including Dobson's 1.7 million subscribers."AT&T is focused on mobility, which includes offering our customers in markets large and small the best and broadest wireless network," said Randall L. Stephenson, chairman and CEO of AT&T. "The rural market is attractive to us, and the addition of Dobson to our wireless family will expand our network coverage and better allow the customers of both companies to be connected whenever, wherever and however they want.
"The combination of our two companies also will create value for AT&T's stockholders," explained Stephenson. "Our wireless business is a significant and growing revenue generator and is critical to our future. This combination brings two key assets—Dobson's 1.7 million customers and its strong, compatible network—to AT&T, delivering both growth and cost savings opportunities."
Following the acquisition, Dobson will be incorporated into AT&T's wireless operations, which are led by Stan Sigman, president and chief executive officer AT&T Mobility.
"Dobson is proud of the role we have played in bringing wireless service to rural customers, but we also take pride that these operations will become part of a company with the resources and potential of AT&T,” said Everett Dobson, chairman of Dobson Communications. “Our customers will gain access to the wide range of innovative products and services AT&T offers, such as the revolutionary iPhone (News - Alert), to which they would not have access without this merger."
Dobson's network covers rural and suburban areas in Alaska, Arizona, Illinois, Kansas, Kentucky, Maryland, Michigan, Minnesota, Missouri, New York, Ohio, Oklahoma, Pennsylvania, Texas, Virginia, West Virginia and Wisconsin. Because Dobson's network overlaps minimally with AT&T's, the acquisition will spread out geographic coverage for both companies' customers. In addition, Dobson's 850 MHz spectrum will enhance AT&T's service quality in those rural and suburban markets.
Niladri Sekhar Nath is a contributing writer for TMCnet covering telecommunications, service providers and networking
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