AT&T Inc. has wrapped the acquisition of Verizon Wireless assets in a number of states, but Verizon customers’ plans and coverage will stay the same for about the next year.
In 2008, Verizon pushed for another mega-merger – the first was the MCI takeover – with the $28.1 billion purchase of Alltel, creating the nation’s largest wireless service provider. To complete the deal, though, Verizon had to sell properties in mostly rural areas in 18 states. So, AT&T bought the 1.6 million subscribers covered by Verizon’s network in those regions. But it will be another 12 months before those customers must switch to AT&T devices and contracts. AT&T won’t charge those Verizon users to upgrade their handsets.
AT&T purchased the Verizon assets for about $2.35 billion in cash. All in all, AT&T said it plans to invest between $18 billion and $19 billion this year, “assuming a favorable regulatory environment,” in its wireless networks and wireline backhaul.
The “favorable regulatory environment” comment refers to the FCC’s recent move to codify Net neutrality principles as law. AT&T CEO Randall Stephenson has threatened to cut funding of the U-verse IPTV product if the FCC tries to regulate the company too much.
Shares of AT&T closed 8 cents higher at $25.44 on Wednesday.
