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AT&T Now Owns Verizon Assets in 18 States

More than 1 million Verizon customers in 18 states now are AT&T subscribers, but their plans wont change for a while.

Kelly Teal

June 23, 2010

1 Min Read
AT&T Now Owns Verizon Assets in 18 States

AT&T Inc. has wrapped the acquisition of Verizon Wireless assets in a number of states, but Verizon customers plans and coverage will stay the same for about the next year.

In 2008, Verizon pushed for another mega-merger the first was the MCI takeover with the $28.1 billion purchase of Alltel, creating the nations largest wireless service provider. To complete the deal, though, Verizon had to sell properties in mostly rural areas in 18 states. So, AT&T bought the 1.6 million subscribers covered by Verizons network in those regions. But it will be another 12 months before those customers must switch to AT&T devices and contracts. AT&T wont charge those Verizon users to upgrade their handsets.

AT&T purchased the Verizon assets for about $2.35 billion in cash. All in all, AT&T said it plans to invest between $18 billion and $19 billion this year, assuming a favorable regulatory environment, in its wireless networks and wireline backhaul.

The favorable regulatory environment comment refers to the FCCs recent move to codify Net neutrality principles as law. AT&T CEO Randall Stephenson has threatened to cut funding of the U-verse IPTV product if the FCC tries to regulate the company too much.

Shares of AT&T closed 8 cents higher at $25.44 on Wednesday.

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About the Author(s)

Kelly Teal

Channel Futures

Kelly Teal has more than 20 years’ experience as a journalist, editor and analyst, with longtime expertise in the indirect channel. She worked on the Channel Partners magazine staff for 11 years. Kelly now is principal of Kreativ Energy LLC. Follow her on LinkedIn at /kellyteal/.

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