BellSouth Corp. announced it will buy Ram Broadcasting Corp., thereby gaining complete control of Ram Mobile Data USA’s wireless data network, which the two companies co-own.
Under a definitive agreement signed Friday, BellSouth also will fully acquire Ram Mobile Data Ltd., a United Kingdom-based wireless data operation. Bill Lenahan will remain in his position as Ram’s president and chief executive officer. Terms of the transaction were not released.
Currently, BellSouth has a 49-percent interest in the network. Ram Broadcasting owns 51 percent. If approved by the Federal Communications Commission, the transaction will give BellSouth a 90-percent interest in the network and 100 percent operating control.
L.M. Ericsson, along with a Swedish bank called Nordbanken, are currently creditors of BellSouth and Ram Broadcasting. However, once the deal receives regulatory approval, Ericsson and Nordbanken will become limited partners and will hold the other 10-percent interest in Ram Mobile Data. BellSouth will have the option to buy that 10-percent interest in the future, said BellSouth spokesman Al Schweitzer. Ram’s wireless data network is based on L.M. Ericsson’s Mobitex technology.
Michael Harrell, president of BellSouth’s subsidiary, BellSouth Mobile Data Inc., said that the United States and United Kingdom are the two most developed mobile data markets, and BellSouth wanted to become more established in them.
“While we have had an excellent relationship with Ram Broadcasting, the opportunity to have a controlling position in these markets will afford us even greater flexibility toward implementing our mobile data strategies in the future,” he said.
