FCC clears Alltel purchase of Western Wireless
Reuters
Mon Jul 11, 2005 5:22 PM ET
http://today.reuters.com/investing/financeArticle.aspx?type=governmentFilingsNews&storyID=URI:urn:newsml:reuters.com:20050711:MTFH31431_2005-07-11_21-22-05_N11499459:1
WASHINGTON, July 11 (Reuters) - Alltel Corp. (AT.N: Quote, Profile,
Research) on Monday won approval from U.S. communications regulators to
acquire rural wireless carrier Western Wireless Corp. (WWCA.O: Quote,
Profile, Research) on the condition they divest certain assets in 16 markets.
The U.S. Federal Communications Commission said it unanimously agreed to
permit the deal on the condition Alltel sell Western Wireless customers,
infrastructure and wireless airwaves in markets in three states: Arkansas,
Kansas and Nebraska.
In cases where Alltel does not have automatic roaming agreements, the
company was barred from preventing its customers from choosing to roam on
other available wireless networks unless a subscriber specifically requests
that option be blocked, according to the FCC.
"This action will ensure that consumers continue to receive the benefits of
competition, such as lower prices and higher quality service," FCC Chairman
Kevin Martin said in a statement.
The divestiture requirement mirrors conditions imposed by the U.S. Justice
Department's antitrust division, which approved the roughly $4.3 billion
transaction last week. Alltel will also assume about $1.5 billion in debt
as part of the deal.
Alltel provides a variety of communications services to more than 13
million residential and business customers in 27 states. Western Wireless
has about 1.23 million customers in 19 U.S. states and about 1.67 million
subscribers in 10 nations.
Mobile operators in the fiercely competitive U.S. market are combining to
cut costs and boost marketing clout amid falling call prices and a
declining number of potential first-time wireless customers.
The agency is also considering another major acquisition in the wireless
industry, Sprint Corp.'s (FON.N: Quote, Profile, Research) proposed
purchase of Nextel Communications Inc. (NXTL.O: Quote, Profile, Research)
FCC staff have recommended approval of that deal as well, a source familiar
with the matter told Reuters last week. It was not immediately known if the
staff also suggested conditions.
Alltel shares closed up 5 cents to $64.65 on the New York Stock Exchange
while Western Wireless shares also moved up 5 cents to close at $43.80 on
Nasdaq.
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923 Fax: 713-743-3927
antunes at uh dot edu
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