BEDMINSTER, New Jersey, United States—Verizon Wireless signed definitive agreements to acquire certain Dobson Communications wireless operations in California, Georgia, Ohio and Tennessee for approximately US$465 million. The Tennessee market, which Dobson said it was selling for US$202 million, was the property of American Cellular, its joint venture with AT&T Wireless.
Verizon Wireless said the markets, covering nearly 1 million potential customers, were virtually encircled by its current networks serving as significant roaming markets for customers traveling through the local footprint. The carrier also said it would begin converting Dobson’s current TDMA operations in the markets to CDMA once the transaction closes early next year.
“These assets are a strong strategic fit for our business,” said Denny Strigl, president and chief executive officer of Verizon Wireless. “Our experience has shown that by taking over these fill-in markets, we can guarantee significant cost savings for the business and greatly enhance customer satisfaction through investment in the local network infrastructure.”
In addition to the network, Verizon Wireless will acquire all the Dobson operations in the markets including network facilities, certain retail stores, customer service operations and about 125 employees. Dobson’s current service, marketed under the Cellular One and Alex Wireless brand names, will also convert to the Verizon Wireless name after the deal closes.
Verizon Wireless and Dobson said they are still negotiating on a separate transaction involving Dobson’s 75 percent ownership in Arizona RSA #5, which was part of the original negotiations begun in mid-September.
