June 23, 2010

AT&T Completes Acquisition of Divestiture Properties from Verizon Wireless

AT&T has completed its acquisition of wireless assets from Verizon Wireless. The transaction enhances AT&T’s wireless network coverage in primarily rural areas in 79 service areas across 18 states. To secure regulatory approvals for its purchase of Alltel in 2009, Verizon Wireless agreed to divest the properties.

Once network transition work is completed, the approximately 1.6 million subscribers in these service areas will have access to AT&T’s 3G mobile broadband network. AT&T expects to roll out its 3G service to all of the acquired properties.

The transaction extends AT&T’s wireless network coverage in primarily rural areas of Alabama, Arizona, California, Colorado, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, South Dakota, Tennessee, Utah, Virginia and Wyoming.

Over a period of approximately 12 months, AT&T will launch service on a market-by-market basis as network integration work is completed. For now, there are no changes to customers’ phone numbers, rate plans, network coverage, customer service contacts or processes for making monthly bill payments.

Under terms of the agreement, AT&T is purchasing the assets for approximately $2.35 billion in cash. The transaction primarily represents former Alltel assets, but it also includes assets from Verizon Wireless and the former Rural Cellular Corporation.