US mobile carrier AT&T has made another acquisition, this time it is the US retail wireless business of Alltel, and the deal is reported to be worth around $780 million US dollars.
The deal means that AT&T will acquire Alltel’s wireless properties, network assets, around 585,000 subscribers and licenses, and AT&T are hoping the deal will improve its coverage in rural areas.
ATNI operates under the Alltel name in the U.S., and its network covers approximately 4.6 million people in primarily rural areas across six states — Georgia, Idaho, Illinois, North Carolina, Ohio and South Carolina. The acquisition includes spectrum in the 700 MHz, 850 MHz and 1900 MHz bands and is largely complementary to AT&T’s existing network. ATNI currently operates a retail CDMA network for its subscribers in these areas. AT&T expects that as it upgrades the network, ATNI customers and existing AT&T customers who roam in these areas will enjoy an enhanced mobile Internet experience.
Strategic Importance of the Acquisition
This acquisition is a strategic move for AT&T as it aims to bolster its presence in rural areas, which have traditionally been underserved in terms of high-speed mobile internet. By acquiring Alltel’s assets, AT&T gains access to a significant number of new subscribers and valuable spectrum licenses. The spectrum in the 700 MHz, 850 MHz, and 1900 MHz bands is particularly valuable as it enhances AT&T’s ability to provide robust and reliable coverage in areas where it previously had limited reach.
The rural market is becoming increasingly important for mobile carriers as urban markets become saturated. By improving its rural coverage, AT&T can attract new customers who have been underserved by other carriers. This move also helps AT&T to better compete with other major carriers like Verizon and T-Mobile, who are also looking to expand their rural coverage.
Impact on Customers and Network Upgrades
For the 585,000 Alltel subscribers, this acquisition means a transition to AT&T’s network, which promises enhanced services and better coverage. AT&T has committed to upgrading the existing CDMA network to its more advanced LTE technology. This upgrade will not only improve the quality of voice calls but also provide faster mobile internet speeds, which is crucial for modern smartphone users who rely heavily on data services.
Existing AT&T customers who travel through or live in these newly acquired areas will also benefit from the improved network infrastructure. Enhanced coverage and faster internet speeds will make it easier for customers to stay connected, stream videos, and use data-intensive applications without interruption.
Moreover, the acquisition is expected to bring economic benefits to the rural areas involved. Improved mobile infrastructure can attract businesses and boost local economies by providing better connectivity for remote work, online education, and telehealth services.
In conclusion, AT&T’s acquisition of Alltel’s US retail wireless business is a significant step towards improving its rural coverage and expanding its customer base. The deal not only benefits AT&T by enhancing its network capabilities but also promises better services for existing and new customers in rural areas. As AT&T continues to upgrade the network, the overall mobile internet experience in these regions is expected to improve significantly.
Source The Next Web
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