More than 660,000 U.S. and Canadian customers subscribed to GSM wireless service in the second quarter of 1999, according to the North American GSM Alliance. This brings the total number of GSM customers in North America to 4.2 million.
Canada
Bell Canada announced plans to purchase for CAN$1.6 billion (US$1.06 billion) the minority interests in BCE Mobile Communications. Bell Canada currently owns 65 percent of the outstanding common shares of BCE Mobile. Bell Canada said it will finance the offer through the issue of new equity to its two shareholders-BCE Inc., which owns 80 percent, and U.S.-based Ameritech, which owns 20 percent of the company.
British Telecom and AT&T have jointly bought a 33-percent stake in Canadian operator Rogers Cantel Mobile Communications for CAN$1.4 billion (US$937 million). BT and AT&T also announced that BT will acquire a 9-percent stake in AT&T Canada by acquiring for CAN$600 million (US$401.6 million) 30 percent of AT&T’s current 31-percent stake in AT&T Canada.
United States
Finish operator Sonera agreed to purchase 9.1 percent of U.S. GSM operator Powertel. Sonera will acquire 100,000 Powertel shares from Ericsson for US$122.7 million. Sonera already owns 19.4 percent of Aerial Operating Co., a wholly owned subsidiary of U.S. GSM operator Aerial Communications. Sonera’s investment in Powertel, whose footprint covers much of the U.S. Southeast, gives it access to a GSM player in a strong position to merge.
Qwest Communications International wooed U S West away from its original bidder, Global Crossing, and dropped its bid for Frontier. Global Crossing and Frontier plan to go ahead with the merger agreement they originally forged in March. Shortly after the new merger arrangements were settled, Frontier announced plans to sell its wireless interests to Bell Atlantic Mobile, which is a 50-50 partner with Frontier in service areas in the U.S. states of New York and Pennsylvania.
Vodafone AirTouch acquired rural cellular carrier CommNet Cellular. Analysts say other rural carriers like Rural Cellular Corp. and Dobson Cellular may begin to look extremely attractive to larger operators as a way to reduce roaming costs.
