AT&T is making news with its plans.This company is on the verge of acquiring the wireless spectrum.It is planning to dish out $780 million for this acquisition.
It is looking at reaching out to more than four million people living in the country side. AT&T will take over the operations of Atlantic Tele-Network’s wireless operations in the US and cover six states which include Georgia, Illinois, North and South Carolina, Ohio and Idaho.So far, the wireless spectrum operates under the brand name of Alltel and has 4.6 million users.
AT&T is a Dallas based company whereas Atlantic Tele-Network originates from Beverly.This news had a positive effect on the shares of Atlantic Tele-Network which rose with the announcement of this news.
AT&T will need to get the necessary licenses, assets and retail stores to get going.They are eyeing 585,000 subscribers to increase their subscriber base substantially.
For its 4G LTE network, AT&T makes use of 700MHz band; for its 2G and 3 G networks it uses 8500 MHz and 1900 MHz bands respectively. The Federal Communications Commission along with US Department of Justice have to still sign the deal to take place between these two companies.
So far AT&T uses CDMA network in these places. With this new network spectrum, AT&T expects to give its existing users a better web connectivity and at the same time increase its subscriber base in the rural areas.
On the business front, AT&T does not expect that this shift from CDMA to wireless spectrum will cause any adverse effect to its cash flows.
After getting due permission from the authorities, AT&T expects the deal to be struck by the end of this year. It is one bit of news that is going to bring cheer to AT&T’s subscribers.