Good news for iPhone owners...

Jun 30, 2007 15:08 GMT  ·  By

Amidst customer dissatisfaction regarding the problems encountered by some when activating their iPhones, AT&T has announced that it will be acquiring Dobson Communications Corporation. The provider of rural and suburban wireless communications services will be acquired for approximately $2.8 billion in cash.

The deal will see a significant improvement in AT&T's wireless coverage in the United States by combining the complementary networks of the two companies. Previously, Dobson provided roaming service to AT&T and predecessor companies. Now AT&T will be able to deliver a better customer experience to its wireless customers including the 1.7 million Dobson subscribers.

"AT&T is focused on mobility, which includes offering our customers in markets large and small the best and broadest wireless network," said Randall L. Stephenson, chairman and CEO of AT&T, in the press release. "The rural market is attractive to us, and the addition of Dobson to our wireless family will expand our network coverage and better allow the customers of both companies to be connected whenever, wherever and however they want."

"The combination of our two companies also will create value for AT&T's stockholders," Stephenson added. "Our wireless business is a significant and growing revenue generator and is critical to our future. This combination brings two key assets -- Dobson's 1.7 million customers and its strong, compatible network -- to AT&T, delivering both growth and cost savings opportunities."

"This transaction reflects the natural evolution of the wireless industry. With Dobson's network reaching nearly 13 million consumers in 17 states, the acquisition will expand AT&T's reach in rural and suburban markets," said Everett Dobson, chairman of Dobson Communications, in the press release. "Dobson is proud of the role we have played in bringing wireless service to rural customers, but we also take pride that these operations will become part of a company with the resources and potential of AT&T. Our customers will gain access to the wide range of innovative products and services AT&T offers, such as the revolutionary iPhone, to which they would not have access without this merger."