AUSTIN, Texas—KGI Wireless Inc. said it snagged a multi-year deal to manage Alltel Corp.’s 3,000 wireless tower sites. The agreement represents the first time a domestic wireless carrier has selected a company to direct the marketing and licensing of its national tower inventory, KGI noted.
Privately-held KGI has been marketing towers and managing real estate for some 20 years. The company says its portfolio includes 6,000 managed sites nationwide and more than $600 million worth of radio tower assets from Alltel, Charter Communications, Mediacom Corp. and Time Warner Cable.
Little Rock, Ark.-based Alltel has about 10 million wireless customers in 33 states. Last year, the company spun off its wireline business to become a pure-play wireless carrier. Alltel then expanded its wireless footprint, acquiring rural operator Western Wireless Corp., Midwest Wireless and First Cellular of Southern Illinois. More recently, Alltel purchased the remaining 50-percent interests in 10 partnerships with Palmetto MobileNet L.P. that it did not already own. The partnerships cover about two million potential customers in North and South Carolina.
Speculation about Alltel being bought by Verizon Wireless has been steady, particularly in light of AT&T Inc.’s planned acquisition of BellSouth Corp., which will wipeout the Cingular brand. Alltel and Verizon Wireless both operate CDMA-based networks that use Qualcomm Inc.’s BREW platform and the two have roaming agreements in place valid through 2010.
Terms of the agreement between KGI and Alltel were not disclosed.
