To clear the way for its merger with AT&T Wireless, Cingular Wireless has
sold spectrum licenses in Dallas and Detroit to MetroPCS for $230 million,
the companies announced today.
The transaction mirrors a $170 million deal Cingular struck with Alltel
on Friday for airwave space in Connecticut, Georgia,
Kansas, Kentucky, Mississippi, Oklahoma and Texas.
Both divestitures are part of the Atlanta carrier’s agreement with the
federal regulators who were concerned with the impact of Cingular’s $41
billion takeover of AT&T Wireless on customers and rivals.
The Department of Justice (DoJ) approved
the mega-merger, provided Cingular sold spectrum and customer contracts in
11 states.
For the regional players, the sales help them expand their regional
footprints.
“[The spectrum purchase] will allow us to develop two more of the largest
markets in the United States with our unique service,” Roger Linquist, CEO
of MetroPCS, said in a statement.
MetroPCS is based in Dallas. The spectrum acquisition, which is expected to
close during the first quarter, puts its service in five of the top 12 U.S.
markets, including Atlanta, Miami and San Francisco, the company said.
Cingular is also making other moves as the integration of AT&T Wireless
approaches. CEO Stan Sigman recently revealed that the company will cut
about 7,000 jobs, a little more than 10 percent of the workforce beginning
in January.
The positions will likely be concentrated in administrative departments,
rather than the customer service organizations. It’s unclear what
percentage of the cuts will hit former AT&T Wireless employees.
