FCC Approves AT&T Acquisition Of Centennial, With Conditions
06 Novembre 2009 - 4:45PM
Dow Jones News
The Federal Communications Commission this week conditionally
approved AT&T Inc.'s (T) $944 million acquisition of Centennial
Communications Corp (CYCL).
The telecommunications companies say the merger will bring
broader and faster wireless coverage to Centennial's customers in
the Midwest, Southeast, Puerto Rico and the U.S. Virgin Islands and
help deploy more broadband Internet access to rural parts of the
country.
As part of a settlement with the Department of Justice, the
companies will sell Centennial's wireless licenses and assets in
eight areas in Louisiana and Mississippi. The licenses will be sold
to one purchaser in each of three regions to retain their
competitiveness. AT&T agreed in May to sell Centennial's assets
in five areas to Verizon Communications Inc (VZ).
AT&T also promised to honor Centennial's current agreements
with other carriers to provide roaming services to the end of their
term. Any carrier with fewer than 10 million subscribers that has a
roaming agreement with Centennial will be allowed to maintain those
terms with AT&T for four years or the agreement's end.
AT&T will not have to sell its assets in Puerto Rico but
agreed to limit the services it provides to America Movil (AMX),
which competes with Centennial in Puerto Rico and the U.S. Virgin
Islands.
FCC Commissioner Michael Copps concurred in the decision to
approve the merger but cautioned that concentration of
telecommunications companies doesn't always benefit consumers.
"Too many rural areas have been abandoned when the marriage
didn't produce the big company profits sought by the market," Copps
said in a statement.
The two companies agreed to merge last November, with AT&T
acquiring Centennial for $944 million in cash. Centennial
stockholders will receive $8.50 per share upon completion of the
deal.
"The addition of Centennial will enhance AT&T's assets in
wireless--a strategic priority and one of our biggest growth
drivers," Ralph de la Vega, president and chief executive officer
of AT&T Mobility and Consumer Markets, said in a statement on
Friday.
AT&T expects to place its products and services at
Centennial's mainland retail locations by January 2010 and take
over Puerto Rico services later next year.
-By Kristina Peterson, Dow Jones Newswires; 202-862-6619;
kristina.peterson@dowjones.com
Centennial Communications (NASDAQ:CYCL)
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