Regional wireless operator Centennial Communications Corp. said it expanded its Midwest footprint into Grand Rapids and Lansing, Mich.
Centennial acquired the 10-megahertz of spectrum used for the expansion from AT&T Wireless Services Inc. last October for $19.5 million. The carrier also acquired spectrum in Indianapolis and Lafayette, Ind., as part of the deal, and then resold that spectrum to Verizon Wireless for $24 million.
Overall, the deal netted Centennial 2.2 million incremental potential customers and $4.5 million in cash. The carrier said it planned to spend approximately $35 million during the next two years building out the acquired pops, and that it expected to have 1.4 million of the pops covered by the end of this year.
Centennial’s management noted the new markets will anchor its operations and represent positive growth possibilities for the carrier.
“This targeted expansion significantly improves our Midwest footprint, strengthening our competitive advantage and setting a course for renewed subscriber growth in our U.S. wireless business,” said Michael Small, chief executive officer of Centennial. “Grand Rapids and Lansing will be the anchor of our Michigan footprint, representing an attractive growth opportunity on its own merit and making us stronger in many of our existing markets.”
Centennial reported last month that it lost 500 customers in its domestic operations during its third fiscal quarter ended Feb. 28, ending the quarter with 544,500 total domestic subscribers.
