Verizon Wireless must sell more assets in 11 markets
So who will pick up these properties and what will they do with them? - DPR
telecomclick.com
By Kevin Fitchard
June 23 (WirelessClick) - Despite the sale of three large
networks to AT&T Wireless this week, Verizon Wireless
must still unload networks in another 11 markets by June
30 to meet federal guidelines.
The joint venture of Vodafone AirTouch and the merging
GTE and Bell Atlantic must rid itself of overlapping
interests in Chicago, Seattle, Cincinnati, Dayton, San
Antonio, Austin and several other smaller markets in
Texas and Washington to meet the merger terms of the
U.S. Justice Department. If not, the properties all will go
into trust where they will operate independently from
Verizon Wireless and its parent companies until buyers are
found.
"It's likely we'll be announcing some agreements soon,"
said Verizon Wireless spokesman Brian Wood. "In any
case, we'll resolve these issues before long. Our preference
is to swap properties as opposed to selling them off."
When the Justice Department first approved the GTE-Bell
Atlantic merger, the company had overlapping interests in
47 markets to divest. Since then, Verizon Wireless has
disposed of 36 of them through sale and exchange
agreements. In February, AllTel exchanged an estimated $3
billion in wireless assets in 13 states, taking care of 27 of the
overlapping markets in one stroke. In return for networks
in Alabama, Arizona, Florida, Ohio, New Mexico and
South Carolina, AllTel gave Verizon Wireless markets in
Illinois, Indiana, Iowa, Nevada, New York and Pennsylvania.
The most recent deal was struck earlier this week with
AT&T Wireless, which outright bought Verizon Wireless
networks in three of the largest markets in the country.
AT&T added licenses and networks in Houston, San Diego
and San Francisco to its extensive nationwide footprint.
AT&T, however, will have to convert the Houston and San
Diego networks from CDMA to TDMA technology.
Once the dust settles and all deals are done, the GTE-Bell
Atlantic-Vodafone venture will have about 23 million
voice subscribers and 4 million paging customers, making it
by far the largest carrier in the U.S. Verizon Wireless,
officials predict. The venture is incorporating the assets of
AirTouch Cellular, AirTouch Paging, Bell Atlantic Mobile,
PrimeCo (a former venture of Vodafone and Bell Atlantic),
GTE Mobility and whatever assets are gained through deals
struck with other carriers. |
