LITTLE ROCK, Ark.-Although Alltel last week announced it will sell 20 of its personal communications services licenses to Verizon Wireless, it will keep another 42 licenses. The company also plans to buy some of NextWave Telecom Inc.’s licenses during the auction scheduled for next month, an Alltel spokesman said.
“The licenses that we sold do not fit into our strategic plan,” said Andrew Moreau, an Alltel spokesman.
However, some of NextWave’s licenses, which will be on the table in the Federal Communication Commission’s auction set for Dec. 12, do fit that plan, he said.
“We may participate in that (auction); we may be interested in some of those licenses,” said Moreau.
Alltel is not the only company repositioning its licenses-like chess players with their pieces-before the December auction. CenturyTel Inc. announced last week it’s selling licenses covering about 7 million potential customers, and Pocket Communications Inc. offered up 12 of its PCS licenses in a private auction last month.
“When we looked at what we had, the 20 licenses that we sold do not overlap with the markets that we have today,” Moreau said. “This is just an acknowledgement that we have no plans to build out those 20 markets.”
Alltel is selling 20 PCS licenses in six states covering 11.4 million potential customers to Verizon.
The companies did not disclose the financial details of the deal. The transaction, which covers Atlanta and other major areas, is expected to be complete in the first quarter of next year.
The licenses cover areas in Anninston, Decatur, Florence, Gadsden and Huntsville, Ala.; Chattanooga, Cleveland and Memphis, Tenn.; Kansas City, Poplar Bluff, Jefferson City, Joplin, Rolla and Sedalia, Mo.; Atlanta, Athens, Gainesville, Rome and Macon-Warner-Robins, Ga.; and Lawrence, Kan.
Alltel’s other 42 PCS licenses cover more than 17 million potential customers. The company now has 10 million customers in 24 states and 55 countries and territories.