OKLAHOMA CITY-Rural carrier Dobson Communications Corp. announced it purchased the wireless assets of Michigan carrier RFB Cellular Inc. out of bankruptcy for $29.3 million. Dobson said the deal gives it access to 256,000 pops and 25,900 subscribers in the area.
“This represents further progress in increasing our strategic coverage footprint in Michigan. The acquisition enhances the value of calling plans that we sell in the state and enables us to reduce roaming expenses statewide,” said Everett Dobson, the carrier’s chief executive officer and president.
Dobson said it will operate under a spectrum lease with RFB pending regulatory approval of the license assignments for the 850 MHz cellular licenses in Michigan 2 and 4 Rural Service Areas and the 1900 MHz PCS licenses in Basic Trading Areas for Alpena, Escanaba, Mount Pleasant, Petoskey, Saginaw, Sault Ste. Marie, and Traverse City. Dobson’s acquisition of the licenses covering the leased spectrum is expected to close in 2005, after FCC approval. Dobson said it will upgrade RFB’s CDMA/analog network to GSM/GPRS/EDGE technology, and will market the network under the Cellular One brand.
Dobson said it will fund the purchase with cash raised from its recent senior secured notes offering.
