AT&T continues to gobble up regional wireless operators, announcing it has agreed to purchase wireless network assets and subscribers from Iowa-based Long Lines Wireless for an undisclosed amount. The deal also includes the purchase of transport services from Long Lines using its fiber optic network.
Long Lines cited an increasingly competitive environment for the sale.
“Regional wireless providers have limited access to the latest smartphones and other devices, and it has become increasingly difficult for Long Lines Wireless to meet the digital mobile needs of our customers,” said Brent Olson, CEO of Long Line. “We concluded that Long Lines could best serve our customers by focusing our attention and investing our resources in providing new features for our non-wireless services including voice, broadband services and cable TV, and in expanding our fiber optic network to reach more communities and customers. Long Lines remains committed to our customers and will continue to provide the most dependable and reliable service our customers need and expect.”
Long Lines, which launched wireless services in 2006, said the deal will provide additional choices for its customers in regards to service plans, including access to “4G”plans and phones offered by AT&T. The carrier currently offers service across portions of Iowa, Nebraska, Minnesota and South Dakota using a GSM/GPRS/EDGE network.
Long Lines added that the deal will not include its non-wireless services, including landline communications, broadband Internet and cable television programming. The deal is expected to close later this year or in early 2014.
For AT&T, the deal is the latest in a string of acquisitions following its failed attempt to acquire T-Mobile USA in 2011. AT&T announced earlier this month plans to acquire Leap Wireless for about $1.2 billion, or $15 per share. Analysts noted that with Leap’s substantial debt load the total price is in excess of $4 billion. AT&T is in the process of acquiring regional operator Atlantic Tele-Network, which was announced earlier this year for $780 million. That deal includes spectrum license in the 700 MHz, 850 MHz and 1.9 GHz bands, as well as Atlantic Tele-Network’s approximately 585,000 customers.
AT&T has also made deals to acquire spectrum licenses, including plans to acquire 700 MHz licenses for $1.9 billion from Verizon Wireless, and 1.7/2.1 GHz and 2.3 GHz licenses from Comcast, Horizon, NextWave and San Diego Gas & Electric.
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