WEST POINT, Ga.-Powertel Inc. announced two strategic investments as part of a plan to manage DigiPH PCS properties.
The carrier said it will purchase a 49.9-percent equity interest in Eliska Wireless Ventures I Inc., an entity in which Eliska Wireless Investors I L.P. and Sonera Corp. are also investing. In addition, Sonera has agreed to purchase about $125 million in Powertel common stock to help fund Powertel’s investment in Eliska.
In a separate transaction, Eliska Wireless Ventures I Inc. has agreed to purchase the assets and assume certain liabilities of the personal communications services operations of DiGiPH PCS Inc. for $375 million, subject to certain adjustments.
Eliska Wireless Ventures and Powertel intend to enter a management agreement that allows Powertel to manage the operations of the wireless markets under the control and direction of Eliska Wireless Ventures. Powertel will extend its brand name throughout DigiPH’s footprint, provide technical and consulting services, expand distribution channels and increase network coverage.
DigiPH’s footprint is contiguous with Powertel’s Southeast footprint. The Global System for Mobile communications carrier owns eight PCS licenses in Alabama, Florida and Mississippi, covering 2.4 million pops. At the end of April, DigiPH had about 78,900 subscribers, yielding a penetration rate of about 3.2 percent and 4.9 percent of its covered population.
“By hiring Powertel to manage these properties, we will be able to offer Powertel-branded wireless services to these areas, thereby allowing current DiGiPH and Powertel customers to take advantage of the extended Powertel service area across the Southeast,” said James Hayles Jr., chief executive officer of Eliska Wireless Ventures I.
