14 DAY TRIAL // Verizon Wireless announced yesterday its decision to buy Rural Cellular Corporation, a regional U.S. network, for the price of about 2.67 billion dollars in cash and assumed debt. With this acquisition Verizon Wireless increases its influence in rural markets and at the same time expands its network coverage. The company's subscribers number will grow with more than 700,000 clients, as Rural Cellular's network provided services for 716,000 users in March 2007.
Lowell McAdam, President and Chief Executive Officer of Verizon Wireless, declared: "Verizon Wireless continually looks for opportunities to enhance our customers' wireless experience. The addition of Rural Cellular's markets will enable us to expand our services into areas where previously we had little or no presence, and will give Rural Cellular's Unicel customers access to the nation's most reliable network and a broader range of voice and data services."
"Since the founding of Rural Cellular Corporation in 1990, our mission has been to provide wireless service to rural areas across the country where tourism, agriculture and small businesses are prevalent", said Richard Ekstrand, President and Chief Executive Officer of Rural Cellular Corporation. "Our employees are deservedly proud of the tremendous growth and strong financial performance we have achieved, while we continued to focus on providing innovative solutions through wireless technologies and maximizing customer satisfaction. Today, as the wireless industry continues to evolve, our Board of Directors has concluded that it is in the company's best interest to enter into a sale transaction with Verizon Wireless. As the nation's leading wireless provider, Verizon Wireless has the resources and scale to provide a wide range of outstanding products and services to our customers, while also offering new opportunities for many of our employees."
Rural Cellular's network covers 15 states: New York, Washington, Vermont, Maine, Massachusetts, Minnesota, New Hampshire, Mississippi, North Dakota, South Dakota, Alabama, Kansas, Wisconsin, Oregon and Idaho. It currently uses both GSM and CDMA technology and Verizon Wireless' plans are to convert the GSM users to CDMA service.
The acquisition will be completed in the first half of 2008, as it still needs approval of Rural Cellular's shareholders as well as governmental and regulatory approval.