Frequently Asked Questions
Q. What is AT&T acquiring from Verizon Wireless?
A. AT&T acquired select Alltel, Unicel, and Verizon Wireless properties, including licenses, network assets and approximately 1.6 million subscribers in 79 service areas across 18 states.
The states represented are: Alabama, Arizona, California, Colorado, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, South Dakota, Tennessee, Utah, Virginia, and Wyoming.
The properties are primarily in rural areas and complement AT&T’s existing wireless footprint. Once network integration work is completed, AT&T will have expanded its 3G coverage by more than 400,000 square miles.
Q. Why did AT&T acquire these wireless properties from Verizon Wireless?
A. This acquisition enhances AT&T’s assets in a key area - mobility. Mobility is a key investment area for AT&T and our biggest growth driver, with strong revenue growth driven by the explosion in wireless data, which increased 5,000 percent in the three-year period from 2007 to 2009.
AT&T’s wireless capabilities differentiate the company from its competitors with both consumers and businesses, and this acquisition expands AT&T’s wireless network coverage in primarily rural areas across 18 states. Once network integration work is completed, AT&T will have expanded its 3G coverage by more than 400,000 square miles.
This transaction demonstrates AT&T’s commitment to rural coverage and allows AT&T to:
- Enter nearly 50 new service areas.
- Offer a full portfolio of wireless and wired services to new and existing customers in the acquired areas that fall within the company’s wired footprint.
- Expand its wireless footprint, making AT&T even more attractive to business customers who demand an integrated provider.
Given AT&T’s strategic focus on mobility, this deal makes financial sense for the company and will create value for our shareowners, with synergies expected in areas including corporate functions, advertising and network operations.
Q. How will new and existing AT&T customer benefit from this acquisition?
A. Our current wireless customers will benefit from an expanded network, allowing them to make more on-network and Mobile to Mobile calls. The customers who are joining AT&T as a result of this transaction will enjoy significant benefits upon the transition of their service to AT&T. AT&T’s subscribers today enjoy a number of benefits including access to:
- The nation’s fastest 3G network with the ability to talk and email or surf the Web at the same time.
- The industry’s leading lineup of devices - one of the reasons more smartphone users have chosen AT&T over any other wireless carrier in the U.S. - and 225,000-plus applications.1
- The best international coverage of any U.S. wireless provider.
- Features such as AT&T A-List, which allows unlimited calling to and from subscribers’ five favorite numbers (10 for FamilyTalk plans) at no additional cost, and Rollover® Minutes, which allows subscribers to carry over unused minutes for up to 12 months.
Q. How many wireless subscribers did AT&T acquire as a result of this transaction?
A. AT&T acquired approximately 1.6 million subscribers across 79 service areas in 18 states.
Q. Will subscribers in these areas have access to 3G services? If so, when will they have access to 3G?
A. Yes, AT&T expects to roll out 3G service to all of the acquired properties. That said, the network integration and customer transition process will take approximately 12 months. We’ll be introducing service on a market-by-market basis as this work is completed.
Q. How much did AT&T pay for these wireless properties?
A. AT&T paid $2.35 billion in cash.
Q. What will happen to customers during the transition period?
A. We will roll out service on a market-by-market basis as our network launches occur over the next year.
Throughout the process, subscribers in these areas will be well taken care of. AT&T will inform customers of changes in advance, and we are committed to making the transition as easy and convenient as possible while working to ensure they receive a high level of service. For more information on customers, see the Customer FAQs section of this site.
Q. Are you acquiring employees and stores as part of this transaction?
A. Yes, AT&T has acquired approximately 1,000 employees, primarily sales and network/IT personnel, and some retail stores and agent locations.
1Access to applications is dependent on wireless device.