BELLEVUE, Wash.-Western Wireless Corp., Bellevue, Wash., said it will pay approximately $195 million to buy rural service area licenses covering about 520,000 people in Arkansas, Texas and Utah from K.O. Communications Inc., NetWireless L.L.C. and American Rural Cellular Inc.
As of June 30, these markets had about 27,000 customers and produced about $7.8 million in cash flow during the first six months of this year, Western Wireless said.
“The markets are under-penetrated relative to other markets in their areas and contain significant stretches of interstate highway,” Mikal Thomsen, president and chief operating officer, said.
“These markets will allow us to expand coverage areas to our existing wireless subscribers as well as provide new opportunities for subscribers in each of the new markets.”
Western Wireless expects to close the transactions by the end of the year, subject to various federal and state regulatory approvals, according to the company.
