AT&T and Verizon Agree to Wireless Asset Swap

AT&T Inc. will trade wireless assets with Verizon Wireless to fill in network coverage, the companies said Tuesday,.

After Verizon finalizes its acquisition of Rural Cellular Corp., AT&T will take over some licenses, network assets and subscribers of the former Rural Cellular, in Burlington, Vt., and rural service areas (RSAs) in New York, Vermont and Washington. AT&T will also acquire a cellular license from Verizon in a Kentucky RSA.

Meanwhile, Verizon will receive licenses, network assets and subscribers in other parts of Kentucky from the former Dobson Communications Corp, acquired by AT&T earlier this year. Verizon will also get 10MHz of PCS spectrum in a number of markets and receive an additional cash consideration from AT&T.

AT&T and Verizon made Dobson and Rural Cellular acquisitions earlier this year in order to expand their market share among rural wireless subscribers. As part of the merger with Dobson, which operates under the Cellular One brand, AT&T is required to meet certain divestiture requirements. To meet those requirements, it will sell the Cellular One brand to Trilogy Partners, it said, and it has entered into a separate agreement with MTPCS LLC to sell Dobson licenses, network assets and subscribers in Texas and portions of Oklahoma.

All transactions are contingent upon regulatory approval and are expected to close by mid-2008.

AT&T Inc. www.att.com
Verizon Wireless www.verizonwireless.com