Alltel Corp. reported a deal with U.S. Cellular Corp. to swap 15 rural markets in Nebraska and Kansas that Alltel acquired when it purchased Western Wireless Corp. for two Rural Service Area markets in Idaho currently operated by U.S. Cellular and $50 million in cash.
Alltel will receive cellular licenses covering 500,000 potential customers in Idaho RSAs 5 and 6; 91,000 retail customers; 84 cell sites; six company-owned retail locations; and 32 authorized agents. The carrier said the pair of markets include 20 counties in southeastern Idaho that are adjacent to current operations.
U.S. Cellular will receive cellular licenses covering 1.4 million potential customers, roughly 125,000 retail customers, 193 cell sites, 15 company-owned retail location and 89 authorized agent locations. U.S. Cellular currently offers service in 25 counties in southeastern Nebraska, including Omaha and Lincoln, and in 10 counties in northeastern and southeastern Kansas, as well as an option to purchase licenses for Wichita and Lawrence.
Alltel said that it will retain ownership of the Lincoln, Neb., market that was owned by Western Wireless, as well as ownership of all of the properties in Kansas and Nebraska that it operated prior to its acquisition of Western Wireless. The carrier also said the deal meets a substantial portion of the divestiture requirements related to its acquisition of Western Wireless.
Alltel also said it expects to divest a rural market in southwest Arkansas and the Cellular One brand name that is controlled by Western Wireless within the four-month allotted time frame. Analysts have noted that several regional carriers that currently use the Cellular One brand, including Dobson Communications Corp. and Rural Cellular Corp., are likely to acquire the rights to the brand.
