AT&T has bought regional US telco Dobson for $2.8 billion in cash and the assumption of $2.3 billion in debt, bringing the total price to $5.1 billion. Oklahoma City-based Dobson markets wireless services under the Cellular One brand and has provided roaming service to AT&T and predecessor companies since 1990. Dobson has 1.7 million subscribers across 17 states.
AT&T Mobility President and CEO Stan Sigman says this acquisition will be an excellent fit for AT&T as the transaction will enhance the company's wireless network coverage in the United States by combining the two companies' networks.
In addition, by becoming part of AT&T's network, Dobson's customers will be able to order the Apple iPhone (recently reviewed by the MPB) and take advantage of the computer company's music subscription service. AT&T is the exclusive wireless carrier for Apple.
AT&T is already the largest wireless carrier in the US, servicing over 62 million subscribers as of the end of March but they are in a tight race with Verizon (+/- 60 million) over subscriber additions. AT&T will surely get a boost from the iPhone release, but getting almost 2 million paying subscribers from this acquisition will give them some breathing room in their battle.
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[Source: Mobile Phone Blog]
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