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Verizon completes purchase of Gila River stake

PHOENIX—Verizon Wireless reported it had completed the previously announced acquisition of Dobson Communication Corp.’s 75-percent controlling interest in the Gila River Cellular General Partnership operating in the Arizona #5 RSA for approximately $85 million. The remaining 25-percent partnership interest is held by Gila River Telecommunications.

Verizon said the RSA, which covers approximately 200,000 potential customers, will expand its service footprint serving southern Arizona east of Phoenix and north of Tucson.

“The wireless system that we now control is virtually surrounded by our current operations and serves as a major roaming territory for customers travelling across the southern portions of the state,” said Ralph Martinez, president of the desert mountain region for Verizon Wireless. “Now that we control the business, we’ll be making the necessary network investments to improve service levels for customers moving between Phoenix and Tucson.”

The network changes include replacing the current TDMA infrastructure to CDMA and converting the current operating name from the Cellular One brand name to Verizon Wireless.
Dobson said it would use proceeds from the sale to reduce debt.

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