WEST POINT, Ga.-Powertel PCS Partners L.P. has selected Global System for Mobile communications technology for the personal communications services network that will be built by Powertel.
Powertel paid $124.5 million for licenses for three major markets, Memphis, Tenn., Birmingham, Ala. and Jacksonville, Fla. InterCel Inc., which is also a member of the partnership and is working to acquire Powertel, will manage Powertel’s PCS operations.
“We believe the selection of the GSM technology will reduce our time to market in deploying PCS in our markets,” said Allen E. Smith, InterCel president and chief executive officer. “GSM is the only proven digital technology commercially available to wireless carriers in the new PCS frequency bands. It is already used in more than 50 countries outside the United States.”
The open architecture of GSM will allow the operator to mix components from different vendors, and worldwide sales of GSM handsets have reduced the handset cost for users, Smith said.
Powertel’s PCS coverage territory includes about 9 million people.
In other news, West Point, Ga.-based InterCel said it has signed a definitive business combination agreement to acquire Powertel. However, the business combination is subject to a number of conditions, including receiving regulatory and InterCel stockholder approvals, as well as additional funding of InterCel.
InterCel filed registration statements with the Securities and Exchange Commission late last month for the offering of 7.3 million shares of common stock and $150 million in gross proceeds of senior discount notes. Of the shares to be offered, 7 million will be offered by the company and 373,443 will be offered by stockholders. Morgan Stanley & Co. Inc., PaineWebber Inc., The Robinson-Humphrey Co. Inc. and Wheat First Butcher Singer will lead manage the common stock and debt offerings.
