AT&T Completes Acquisition of Alltel Assets; Provides Third-Quarter Update on Strong Smartphone and U-verse Sales
DALLAS--(BUSINESS WIRE)-- AT&T Inc. (NYS: T) today closed its acquisition of Atlantic Tele-Network, Inc.'s U.S. retail wireless assets operated under the Alltel brand. AT&T acquired wireless properties in six states, including spectrum licenses, network assets, retail stores and approximately 590,000 subscribers.
The former Alltel network covers approximately 4.5 million people in mainly rural areas in Georgia, Idaho, Illinois, North Carolina, Ohio and South Carolina. AT&T purchased the wireless properties for $780 million. AT&T will immediately begin upgrading the former Alltel network and plans to move customers to the AT&T network by midyear 2014.
Separately, the company expects record third-quarter smartphone sales, driven by strong customer response to new marketing programs, new devices and AT&T's fastest and most reliable in the nation 4G LTE network, which now covers 240 million people. The company expects third quarter smartphone upgrades to be higher year over year, similar to second quarter 2013, and expects to grow its smartphone base by more than 1 million in the quarter. AT&T expects lower year-over-year smartphone upgrades in the fourth quarter, however, given the higher upgrade expectations for the third quarter and the new 24-month upgrade policy.
AT&T continues to invest aggressively in the Project VIP network expansion, and as a result continues to see strong U-verse sales. The company expects to reach 10 million total U-verse subscribers by the end of the third quarter and expects consumer wireline revenue growth for the third quarter to be consistent with second quarter 2013. In wireline business, the company continues to see strong sales of its strategic business services, but with continued economic pressure on legacy services and overall wireline business revenue growth.
AT&T said it is exploring opportunities to monetize some or all of its remaining wireless tower assets. Any potential transaction is dependent on achieving the appropriate long-term operating terms and conditions to enable the company to maintain its leadership in wireless network quality and capabilities.
The company is not changing its full-year 2013 guidance provided in January.
AT&T will release its full third-quarter 2013 financial results after market close on October 23.
AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.
AT&T Inc. (NYS: T) is a premier communications holding company and one of the most honored companies in the world. Its subsidiaries and affiliates - AT&T operating companies - are the providers of AT&T services in the United States and internationally. With a powerful array of network resources that includes the nation's fastest and most reliable 4G LTE network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet, voice and cloud-based services. A leader in mobile Internet, AT&T also offers the best wireless coverage worldwide of any U.S. carrier, offering the most wireless phones that work in the most countries. It also offers advanced TV service with the AT&T U-verse® brand. The company's suite of IP-based business communications services is one of the most advanced in the world.
Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at http://www.att.com/aboutus or follow our news on Twitter at @ATT, on Facebook at http://www.facebook.com/att and YouTube at http://www.youtube.com/att.
© 2013 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise.
KEYWORDS: United States North America Texas
The article AT&T Completes Acquisition of Alltel Assets; Provides Third-Quarter Update on Strong Smartphone and U-verse Sales originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.