DENVER, United States-AT&T Wireless Services’ two largest affiliates, TeleCorp PCS and Tritel, agreed to merge in an all-stock, tax-free transaction. The deal is valued at about US$5.3 billion. Both carriers operate TDMA networks.
TeleCorp is AT&T Wireless’ largest affiliate with 142,231 subscribers at the end of last year and markets covering 16.7 million people in the states of Louisiana, Tennessee, Arkansas, New Hampshire and Massachusetts, as well as the U.S. commonwealth of Puerto Rico. Tritel, AT&T’s second-largest affiliate, has licenses covering 14 million pops in the states of Mississippi, Tennessee, Alabama, Kentucky and Georgia. Both companies market their service under the SunCom brand name.
The combined company, which will have a licensed service area covering 35 million people in 14 states and Puerto Rico, will be called TeleCorp PCS.
In a separate agreement, TeleCorp and AT&T Wireless agreed to swap certain markets-TeleCorp is trading 1.9 million pops in its New England region markets for 1.9 million AT&T Wireless pops in the state Wisconsin. In addition, TeleCorp is acquiring 4 million pops from AT&T Wireless covering other areas of Wisconsin, as well as areas around Des Moines, Iowa.
In total, the transactions will make TeleCorp the ninth-largest wireless carrier in the United States and the third-largest pure personal communications services player, said TeleCorp.
