AT&T Inc. (T): Alltel Assets Acquisition Complete
AT&T Inc. (NYSE:T) has closed their acquisition of Atlantic Tele-Network’s U.S. retail wireless assets under the Alltel brand. AT&T acquired wireless properties in 6 states, including spectrum licenses, network assets, and retail stores. The acquisition also includes around 590,000 subscribers.
Alltel’s former network covers around 4.5 million people in rural areas in Georgia, Idaho, North Carolina, Ohio, South Carolina, and Illinois. AT&T bought the wireless properties for $780 million. AT&T is going to immediately upgrade the former Alltel network and will move their customers to the AT&T network by mid-year 2014.
AT&T is expecting record third-quarter smartphone sales as driven by strong customer response to new marketing programs, new devices, and their 4G LTE network. This covers around 240 million people. AT&T is expecting third quarter smartphone upgrades to be higher year over year, which is similar to second quarter 2013. They are expecting to grow their smartphone base by over 1 million in the quarter.
AT&T is expecting lower year-over-year smartphone upgrades in Q4. However, the company is expecting higher upgrade expectations for the third quarter and the new 24-month upgrade policy.
AT&T is investing aggressively in the Project VIP network expansion and they are continuing to see strong U-verse sales. AT&T Inc. (NYSE:T) is expecting to reach 10 million total U-verse subscribers by the end of Q3 and are expecting to reach 10 million total U-verse subscribers by the end of the third quarter.