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Who is Atlantic Tele-Network?
Atlantic Tele.Network (ATN) came to the forefront
of the cellular business with their successful
bid for the former Alltel Wireless properties
and customers that are being divested by
Verizon Wireless. Most of the divested markets
are being purchased by AT&T, but those
remaining in 26 Cellular Market Areas are
going to Atlantic Tele-Network, and potentially,
their subsidiary, Commnet Wireless.
Atlantic Tele-Network Completes Acquisition
of Former Alltel Assets from Verizon Wireless
Company to Continue Wireless Service
Under
Alltel Brand Name in Acquired Markets
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SALEM, Mass., Apr 26, 2010 (BUSINESS WIRE)
-- Atlantic Tele-Network, Inc.
(NASDAQ: ATNI)
announced today that it has completed
the
purchase of certain former Alltel
wireless
assets from Verizon Wireless.
The total purchase
price was $223 million, which
includes $23
million of acquired net working
capital.
The purchase was funded by a
combination
of cash on hand and borrowings
under the
Company's current credit facility.
The acquisition,
which was completed through the
Company's
wholly owned subsidiary, Allied
Wireless
Communications Corporation (AWCC),
includes
wireless properties and licenses
that serve
approximately 895,000 subscribers
in Georgia,
North Carolina, South Carolina,
Illinois,
Ohio, and Idaho. The Company
currently expects
that these properties will generate
approximately
$500 million in annual service
revenues during
the first twelve months of its
operation
of the assets. In addition, ATN
announced
that it has acquired a license
to continue
use of the Alltel name and accompanying
service
marks, including My Circle, in
the acquired
markets for an initial term of
fourteen years
and a total term of up to twenty-eight
years.
ATN may expand its use of the
brand outside
of these acquired markets subject
to covered
population limitations and certain
other
conditions.
"We appreciate the hard
work of all
parties in closing this transaction,"
said Michael Prior, ATN's President
and Chief
Executive Officer. "We have
a very experienced
management team in place at AWCC,
led by
Frank O'Mara, a former senior
executive at
Alltel, and welcome our new employees
who
support these markets. Consumers
recognize
the Alltel brand for value, service
and choice,
and we plan to continue operating
our business
with the same approach in these
markets."
Verizon Wireless was required
to divest these
properties as part of the regulatory
approvals
granted for its purchase of Alltel
in January
2009. Although the Company will
initially
launch service to a higher number
of subscribers
than previously reported, a high
percentage
of this increased number are
pre-paid subscribers,
and the Company currently expects
to see
net attrition to the subscriber
base in the
first year and a higher rate
of churn overall
during the transition phase.
The acquisition
of these properties by the Company
was approved
by the U.S. Department of Justice
on April
7, 2010, and by the Federal Communications
Commission on April 20, 2010.
More at: ATN press Release |
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ATN locates the new division, "Allied
Wireless" in Little Rock:
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SALEM, Mass., Dec. 15 /PRNewswire/ -- Allied
Wireless Communications Corporation
(AWCC),
a subsidiary of Atlantic Tele-Network,
Inc.
(Nasdaq: ATNI), today announced
plans to
locate its corporate headquarters
in Little
Rock, Arkansas. Atlantic Tele-Network
(ATN),
a telecommunications/wireless
company will
invest more than $200 million
through the
purchase of existing wireless
assets from
Verizon Wireless and the refurbishment
of
its new headquarters for AWCC.
AWCC currently
plans to create at least 200-250
jobs in
Little Rock, most of which will
be highly
paid, professional and technical
positions.
AWCC was formed in connection
with ATN's
agreement to purchase wireless
properties,
licenses and network assets from
Verizon
Wireless, as announced in June
2009. The
sale of assets to ATN is expected
to close
in early 2010, and is subject
to the receipt
of required regulatory approvals.
Verizon
was required by the Federal Communications
Commission to sell these wireless
assets
as part of their acquisition
of Alltel Corporation.
Following the closing, AWCC will
provide
wireless service to more than
800,000 former
Alltel subscribers in six states.
In addition
to the 200-250 new jobs in Little
Rock, AWCC
will initially employ more than
500 people
in those states.
Frank O'Mara, a former Executive
Vice President
of Alltel Corporation, was named
Chief Executive
Officer of AWCC in September
2009. Most recently,
O'Mara served as a partner of
Circumference
Group, a technology investment
and consulting
firm which has been providing
strategic advice
and support to ATN in connection
with this
acquisition. Other former Alltel
executives
have been named to the corporate
leadership
team in the areas of IT, HR,
and Administration.
"Delivering a seamless transition
and
exceptional customer service
is our highest
priority," said Michael
Prior, CEO of
Atlantic Tele-Network. "By
locating
AWCC's corporate headquarters
in Little Rock,
we'll be able to deliver service
to our customers
with an experienced and highly
knowledgeable
workforce. As we work to fill
more than 200
new positions throughout 2010,
we will have
access to a large pool of talented
professionals,
many with telecom experience."
more at: PR Newswire |
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ATN presentation of viability to the FCC,
Sept. 18, 2009:
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Business Overview:
- History of Providing Telecom Services in
Underserved Markets
- Strong Operating Performance in All Markets
- Network-centric Investment Approach
- Superior Track Record of Revenue &
Profitability
Public Interest Benefits from ATN Entry:
New Competition
- ATN represents new entry to the retail
market and will offer fresh facilities-based
competition
- ATN holds no spectrum or facilities in
the markets to be acquired, but will take
over ALLTEL operations and employees
- All markets being upgraded to EvDO Rev.
A under the management trustee
Differentiated Service Offerings
- ATN will use innovative pricing to compete
with the national carriers
- Financial Strength
- ATN intends to invest in maintaining and
improving its network and services
Experience
- ATN brings valuable experience to these
markets
Focus on Retail:
- ATN is developing detailed retail plans
- Migrate and re-home the former ALLTEL networks
- Maintain and improve customer service capabilities
- Launch new marketing and pricing plans
- Access competitive handsets
- Cutover IT system
- Over 400 current ALLTEL employees will
be retained as
permanent ATN employees
- Focus will be on generating a supportive
atmosphere conducive to growth
- Verizon Wireless will provide transition
services to ATN |
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News Release, August 29, 2009:
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President and Chief Executive Officer of
Atlantic Tele.Network, Inc.
(NASDAQ:ATNI), Michael T. Prior, issued the
following statement today.
It has been approximately three weeks since
we announced a definitive agreement to acquire
certain wireless assets from Verizon Wireless
in six states, specifically certain wireless
networks and customers that were formerly
part of Alltel. As this is a very important
event for Atlantic Tele.Network (ATN) and its shareholders
as well as for all of our operating companies
and employees, we wanted to provide additional
insight into the acquisition and reiterate
the basic principles of our strategy.
First, we continue to expect the transaction
to be completed in the third or fourth quarter
of 2009, as previously announced, subject
to the receipt of required consents and approvals
of the Department of Justice and the Federal
Communications Commission. Until that time,
ATN and the Alltel Trust that manages the
wireless assets to be acquired will continue
to conduct their independent businesses as
usual. We will communicate our integration
plans after the transaction officially closes,
but we wanted to reiterate here our commitment
to the strategies and values that set us
apart and how those principles will guide
our operation of these assets and our relationship
to our new employees and customers after
the closing.
We Will Continue to Provide an
Attractive
Alternative to National Carriers
These new customers that we will gain through
this transaction have always had the option
to choose at least one of the very large,
national carriers for service. ATN is decidedly
not a national carrier and will not be replicating
their one size fits all approach. Rather,
the plans and differentiated service offerings
currently enjoyed by these customers will
stay in place. We believe that consumers
want a choice, and we will ensure the resources,
support and network quality to offer compelling
alternatives.
We Are Acquiring a Business,
Not Just a Customer
Base
ATN has a decidedly different perspective
from that of a national carrier. We believe
that to win in these rural markets we need
the full capability of a motivated and well.supported
local employee base.
We do not expect to undertake a massive “assimilation”
into larger nearby operations, that would
result in dislocation and staff reduction.
We value the local knowledge and believe
it is essential to attract and retain customers.
We believe that the people behind these operations
greatly contribute to the value of the assets
we will acquire, and will continue to operate
the businesses that we will acquire.
In addition to the licenses and network assets
we will acquire, we will be adding over 450
Alltel employees who have experience working
for a top.notch, customer.focused operator
and we expect the number of employees focused
on this business to increase substantially.
We need and welcome these new employees and
we want them to be motivated and excited
about the future. We are committed to providing
the support and expertise needed—not just
to survive, but to succeed.
Long-Term Focus
Our strategy is to operate acquired businesses
for many, many years.
Part of that approach includes making additional
investments to expand the scope and improve
services in the businesses we acquire in
order to meet the needs of our customers
and maximize the business opportunity for
employees and shareholders. This strategy
has certainly been a big part of our success
in operating businesses we have acquired
throughout our history.
We believe that in our industry you must
keep a very close eye on network quality
and capability. Our track record is one of
investing in our networks, and the networks
we acquire in this transaction will be no
exception.
. We often say that investing in people is
at the core of our success, and this transaction
will be no exception. We have a track record
of successfully finding the best leaders
and operators and letting them do what they
do best. This is part of our focus right
now, and we are committed to attracting the
leadership and expertise at the top to make
this a successful venture. We are very enthusiastic
about the senior management team that we
will be putting in place to lead this new
entity, and you can expect to hear more about
that in the coming weeks.
Prudent Financial Management
ATN has a history of prudent financial management
and successful investments and operations.
While many others in the telecommunications
industry were expanding rapidly, often financed
with high levels of debt, we stayed with
our approach, which has served us well through
over 20 years of up and down markets. The
result is not just that we are in a position
to undertake this acquisition, but that we
expect to begin our ownership of these businesses
with a very strong balance sheet—and the
flexibility to draw on additional capital
as needed to ensure success.
To this point, we are not stretching our
financing capabilities to do this transaction.
We know firsthand that successful telecommunications
businesses need substantial investments in
technology and network to continue to offer
customers high quality, competitive services.
We have delivered solid financial results
to our shareholders since going public. We
have paid dividends for 41 consecutive quarters,
and we have steadily grown our business and
its value over the past two decades by adding
and developing complementary businesses.
Customers
The formula for wireless and most businesses
is simple: attract and retain customers.
So, our approach will be predicated on doing
everything we can to provide a very positive
experience for customers.
Succeed at this and everyone benefits —
shareholders, employees and community included.
We are confident that this transaction will
be very positive for existing customers and
employees in these new markets, as well as
for all our constituents. This is because
of the quality of the assets we are buying
and the way we plan to operate the assets
for the benefit of existing customers.
ATN has been looking for the right opportunity
to expand the scale and scope of its operations,
and we are bringing a lot to the table.
Collectively, we are an operator of reliable,
high quality, digital wireless, wireline,
and terrestrial and submarine fiber optic
networks in North America, South America
and the Caribbean. We serve markets that
are both geographically separated and technically
challenging. These markets range from rainforests
near the equator, to tropical islands in
the Caribbean, to the plains of the Midwest,
the deserts of the Southwest and to the north
woods of New York and New England. While
each of these markets presents unique challenges,
we select from a wide range of technologies
to deliver reliable, high quality digital
bandwidth and services to our customers.
At the close of this transaction, ATN will
have wireless operations in the rural areas
of 20 states and, when added to our international
operations in South America and the Caribbean,
we expect to have more than 1 million retail
wireless subscribers.
As this transaction progresses and we move
further along the regulatory review process,
we will be able to share more details with
you. In the meantime, you can be sure that
our basic principles will remain the same.
We look forward to completion of this transaction
and the exciting opportunities it will bring
for us all.
/s/ Michael T. Prior, President and Chief
Executive Officer |
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How Atlantic Tele.Network describes themselves:
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Atlantic Tele.Network, Inc. (NASDAQ:ATNI)
is a telecommunications company headquartered
in Salem, Massachusetts. Its principal subsidiaries
include: Commnet Wireless, LLC, which provides
voice and data wireless roaming services
for U.S. and international carriers in rural
areas throughout the United States; Guyana
Telephone and Telegraph Company, Limited,
which is the national telephone service provider
for all local, long.distance and international
services, as well as a wireless service provider
in Guyana; Bermuda Digital Communications
Ltd., which is the leading provider of wireless
voice and data services in Bermuda operating
as Cellular One, and an early.stage wireless
provider in Turks & Caicos; Sovernet,
Inc., which provides wireline voice and data
services to businesses and homes in New England
and high capacity communications network
transport services in New York State; and
Choice Communications, LLC, which provides
wireless television and wireless broadband
services in the U.S. Virgin Islands. |
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ATN's release about their purchase of Alltel
properties, June 30, 2009:
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Atlantic Tele.Network, Inc. Announces Update
Regarding Alltel Divestiture Acquisition
Salem, MA (June 30, 2009) – President and
Chief Executive Officer of Atlantic Tele.Network,
Inc. (NASDAQ:ATNI), Michael T. Prior, issued
the following statement today:
It has been approximately three weeks since
we announced a definitive agreement to acquire
certain wireless assets from Verizon Wireless
in six states, specifically certain wireless
networks and customers that were formerly
part of Alltel. As this is a very important
event for Atlantic Tele.Network (ATN) and
its shareholders as well as for all of our
operating companies and employees, we wanted
to provide additional insight into the acquisition
and reiterate the basic principles of our
strategy.
First, we continue to expect the transaction
to be completed in the third or fourth quarter
of 2009, as previously announced, subject
to the receipt of required consents and approvals
of the Department of Justice and the Federal
Communications Commission. Until that time,
ATN and the Alltel Trust that manages the
wireless assets to be acquired will continue
to conduct their independent businesses as
usual. We will communicate our integration
plans after the transaction officially closes,
but we wanted to reiterate here our commitment
to the strategies and values that set us
apart and how those principles will guide
our operation of these assets and our relationship
to our new employees and customers after
the closing.
-
We Will Continue to Provide an
Attractive
Alternative to National Carriers
These new customers that we will gain through
this transaction have always had the option
to choose at least one of the very large,
national carriers for service. ATN is decidedly
not a national carrier and will not be replicating
their one size fits all approach. Rather,
the plans and differentiated service offerings
currently enjoyed by these customers will
stay in place. We believe that consumers
want a choice, and we will ensure the resources,
support and network quality to offer compelling
alternatives.
-
We Are Acquiring a Business,
Not Just a Customer
Base
ATN has a decidedly different perspective
from that of a national carrier. We believe
that to win in these rural markets we need
the full capability of a motivated and well.supported
local employee base. We do not expect to
undertake a massive “assimilation” into larger
nearby operations, that would result in dislocation
and staff reduction. We value the local knowledge
and believe it is essential to attract and
retain customers. We believe that the people
behind these operations greatly contribute
to the value of the assets we will acquire,
and will continue to operate the businesses
that we will acquire.
- In addition to the licenses and network assets
we will acquire, we will be adding over 450
Alltel employees who have experience working
for a top.notch, customer.focused operator
and we expect the number of employees focused
on this business to increase substantially.
We need and welcome these new employees and
we want them to be motivated and excited
about the future. We are committed to providing
the support and expertise needed—not just
to survive, but to succeed.
- Long.Term Focus
Our strategy is to operate acquired businesses
for many, many years. Part of that approach
includes making additional investments to
expand the scope and improve services in
the businesses we acquire in order to meet
the needs of our customers and maximize the
business opportunity for employees and shareholders.
This strategy has certainly been a big part
of our success in operating businesses we
have acquired throughout our history.
- We believe that in our industry you must
keep a very close eye on network quality
and capability. Our track record is one of
investing in our networks, and the networks
we acquire in this transaction will be no
exception.
- We often say that investing in people is
at the core of our success, and this transaction
will be no exception. We have a track record
of successfully finding the best leaders
and operators and letting them do what they
do best. This is part of our focus right
now, and we are committed to attracting the
leadership and expertise at the top to make
this a successful venture. We are very enthusiastic
about the senior management team that we
will be putting in place to lead this new
entity, and you can expect to hear more about
that in the coming weeks.
- Prudent Financial Management
ATN has a history of prudent financial management
and successful investments and operations.
While many others in the telecommunications
industry were expanding rapidly, often financed
with high levels of debt, we stayed with
our approach, which has served us well through
over 20 years of up and down markets. The
result is not just that we are in a position
to undertake this acquisition, but that we
expect to begin our ownership of these businesses
with a very strong balance sheet—and the
flexibility to draw on additional capital
as needed to ensure success
- To this point, we are not stretching our
financing capabilities to do this transaction.
We know firsthand that successful telecommunications
businesses need substantial investments in
technology and network to continue to offer
customers high quality, competitive services.
- We have delivered solid financial results
to our shareholders since going public. We
have paid dividends for 41 consecutive quarters,
and we have steadily grown our business and
its value over the past two decades by adding
and developing complementary businesses.
Customers
- The formula for wireless and most businesses
is simple: attract and retain customers.
So, our approach will be predicated on doing
everything we can to provide a very positive
experience for customers. Succeed at this
and everyone benefits — shareholders, employees
and community included.
- We are confident that this transaction will
be very positive for existing customers and
employees in these new markets, as well as
for all our constituents. This is because
of the quality of the assets we are buying
and the way we plan to operate the assets
for the benefit of existing customers.
ATN has been looking for the right opportunity
to expand the scale and scope of its operations,
and we are bringing a lot to the table. Collectively,
we are an operator of reliable, high quality,
digital wireless, wireline, and terrestrial
and submarine fiber optic networks in North
America, South America and the Caribbean.
We serve markets that are both geographically
separated and technically challenging. These
markets range from rainforests near the equator,
to tropical islands in the Caribbean, to
the plains of the Midwest, the deserts of
the Southwest and to the north woods of New
York and New England. While each of these
markets presents unique challenges, we select
from a wide range of technologies to deliver
reliable, high quality digital bandwidth
and services to our customers. At the close
of this transaction, ATN will have wireless
operations in the rural areas of 20 states
and, when added to our international operations
in South America and the Caribbean, we expect
to have more than 1 million retail wireless
subscribers.
As this transaction progresses and we move
further along the regulatory review process,
we will be able to share more details with
you. In the meantime, you can be sure that
our basic principles will remain the same.
We look forward to completion of this transaction
and the exciting opportunities it will bring
for us all.
/s/ Michael T. Prior, President and Chief
Executive Officer
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The news that excited the wireless world
was ATN's June 9, 2009 release:
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Atlantic Tele.Network to Acquire Divestiture
Properties from Verizon Wireless.
Salem, MA (June 9, 2009) . Atlantic Tele.Network,
Inc. (NASDAQ:ATNI) today announced a definitive
agreement to acquire certain wireless assets
from Verizon Wireless for $200 million. Under
terms of the agreement, ATN will acquire
wireless properties, including wireless spectrum
licenses and network assets, serving over
800,000 subscribers primarily in rural areas
across Georgia, North Carolina, South Carolina,
Illinois, Ohio, and Idaho. Verizon Wireless
is required to divest these properties as
part of the regulatory approvals granted
for its purchase of Alltel earlier this year.
Under terms of the agreement, ATN will purchase
the assets for $200 million in cash. ATN
expects to fund substantially all of the
purchase price with cash.on.hand and borrowings
under its existing credit facility. As of
April 30, 2009, ATN had approximately $90
million in cash and cash equivalents, $75
million of available borrowings under its
undrawn revolving credit facility, and an
additional $50 million of borrowing capacity,
subject to lender consent, under its term
credit facility.
The acquisition is subject to customary closing
conditions and regulatory approvals, including
the receipt of required consents and approvals
from the Department of Justice (DOJ) and
the Federal Communications Commission (FCC.)
ATN's obligation to close the transaction
is not subject to any financing condition.
ATN expects the transaction to close in the
third or fourth quarter of 2009.
"This is a very attractive transaction
for ATN and it accomplishes what we have
been patiently seeking over the past few
years," said Michael Prior, ATN's President
and Chief Executive Officer. "It provides
ATN with enhanced scale and revenue diversification
and enables us to expand meaningfully our
US wireless business. Coupled with our existing
US wireless operations, we will now have
significant wireless operations in rural
areas of more than 10 states. Including our
international operations, we expect to have
more than 1,000,000 retail wireless subscribers
by transaction close. We believe that our
long history of operating success in comparable
markets, combined with our financial resources,
makes these businesses an ideal fit for us.
We aim to further develop these markets for
customers who want the attention and flexibility
of a local operator. We look forward to transitioning
the employees and subscribers of the acquired
businesses to ATN and to continue building
our wireless business." |
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Most of us should be familiar with Commnet
Wireless, as they provide roaming services for virtually
all US cellular carriers and maintain a network
of 500+ cell sites across the US. This Information is provided by Commnet:
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Commnet Wireless is the premier wholesale
wireless carrier in the USA. Our focus is
providing Domestic and International Wireless
partners with affordable roaming service
in rural areas throughout the United States,
while maintaining the quality and features
that wireless subscribers have come to expect.
We currently operate networks with CDMA,
GSM/GPRS & EDGE technologies in both
the 850 MHz & 1900 MHz bands.
Commnet Wireless is the nation's leading
provider of wholesale voice and data services
to the wireless telecommunications industry.
Commnet Wireless works in partnership with
national and regional wireless operators
to offer highly.reliable, feature.rich coverage
in a variety of technical environments.
We currently manage wireless networks in
14 states. |
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ATN's Annual Report for 2007 shares some
Commnet Wireless highlights:
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Our growth in revenue and operating income
was driven primarily by our Commnet Wireless
subsidiary. Since acquiring Commnet in 2005,
we have invested substantial sums in the build.out of networks in rural
and remote areas of the United States, upgrading
capacity and technology and making strategic
purchases of spectrum and other assets. This has helped produce the
strong growth experienced in 2007, with Commnet’s
revenue and operating income up by 39% and
136%, respectively.
We continue to focus as well on customer
satisfaction. The Commnet team works very
hard to ensure we are providing a strategically
valuable service to the large wireless carriers
that are its customers. We rigorously and
continuously look at our operating and capital
costs so we can move into even more remote
areas profitably. This attention to costs
and operating efficiencies shows in the significant
margin expansion achieved in 2007. The large
carriers are focused on adding subscribers
and services and we can enhance the subscriber
experience by providing coverage in unexpected
areas, at a cost well below what would be
possible for a single retail carrier.
We are also proud of being one of the leaders
in true universal service—without, as yet,
any government subsidy—and in 2007 we brought
mobile telecommunications for the first time
to many communities in the American west,
including Native American lands and national
parks and monuments. We did sell some significant
wireless assets in 2007. In 2002, Commnet
began building and operating a wireless network
in portions of two Midwestern states that
included several growing college towns. Activity,
particularly at the colleges, grew to the
point where one of our largest customers
was looking towards having a retail presence
in the area. Accordingly, we negotiated the
sale of 59 cell sites and related spectrum
to this customer in late December. In recognition
of the strategic value we bring, this carrier
also sold us some spectrum and signed a multi.year
roaming agreement for another, much more
rural area of the Midwest which we agreed
to build out by the second quarter of 2008.
We will miss the revenues from the sold markets,
but we believe the transaction was fair and
strategically sound, since our business model
is to provide services to multiple carriers
in markets that are too small and dispersed
to justify a retail presence for a large
carrier. We anticipate recovering those Midwest
revenues over time through our continued
network expansion. |
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Additional information about Comment Wireless
from ATN's 2008 Annual Financial Report:
|
Through our Commnet subsidiary, we provide
wholesale wireless voice and data roaming
services in rural markets to national, regional
and local wireless carriers. In 2006, we
also began to offer these services to selected
international carriers. We provide these
services through our own networks in markets
located principally in six states in the
Southwest and Midwest. We also operate smaller
networks in seven other states. Many of our
sites are located in popular tourist and
seasonal visitor areas, particularly in the
Southwestern states. Historically, this seasonal
increase in visitors has resulted in higher
call volumes and revenue in those areas during
summer months.
.................................
Network: We currently operate networks with
GSM and CDMA technologies in both the 850
MHz and 1900 MHz bands. This mix of technologies
and spectrum varies by market. However, we
often have at least two technologies deployed
at each cell site in order to maximize revenue
opportunities. The majority of our GSM sites
are also equipped with GPRS and/or EDGE data
technologies. Our networks are comprised
of telecommunications switches, base stations
and radio transceivers located on towers
and buildings typically owned by others,
and leased transport facilities. In 2008
we increased the number of base stations
and sites in service, and we expect that
to continue in 2009. In December 2008, we
acquired the network assets, including 46
base stations, of a rural wireless operation
in Nevada. As of December 31, 2008, we owned
and operated a total of 473 base stations
consisting of 307 GSM and 166 CDMA stations
on 365 owned and leased sites. In 2008, we
completed our phase.out of TDMA and analog
base stations as most mobile handsets currently
sold do not utilize either of those technologies.
Sales and Marketing. Historically, most roaming
agreements were cancelable at.will. In recent
years, however, major carriers have been
experiencing technological incompatibility
with other wholesalers' networks, which has
increased carriers' willingness to make longer
term commitments in exchange for supporting
technologies and features and providing attractive
pricing. We have taken advantage of this
environment by entering into long.term, preferred
roaming agreements with several major wireless
carriers, including AT&T and Verizon
Wireless. Under these preferred roaming agreements,
we typically agree to build a new mobile
network at a specified location and offer
the preferred carrier long.term pricing certainty
in exchange for priority designation with
respect to their customers' wireless traffic.
We believe we have established a track record
of building highly.reliable, feature.rich
network coverage in a variety of technical
environments for major wireless carriers
on time and at attractive rates. We believe
carriers are drawn to our ability to timely
meet buildout requirements in often difficult
and remote areas, the reliability of our
networks and our status as a trusted partner
rather than a national or regional competitor.
Once we complete building a rural network,
we then benefit from existing roaming agreements
with other national, regional, and local
carriers to supplement our initial revenues.
These non.preferred roaming agreements are
usually terminable within 30 days. Because
we have no retail subscribers, we do not
incur retail distribution or retail marketing
costs and our customer service costs are
largely limited to technical and engineering
support. We may provide retail broadband
wireless or other services in certain portions
of our service areas in the future and currently
partner with several small rural operators
to provide retail services.
Customers. We currently have roaming agreements
with more than 65 United States.based wireless
service providers. As of December 31, 2008,
we were the preferred roaming carrier in
selected markets for AT&T (with an initial
term through the end of 2008) and Verizon
Wireless (which has been renewed through
mid.2011). We are in discussions with AT&T
to renew its agreement and expect to enter
into a new multi.year renewal in 2009. While
the new rates are reasonable and there are
volume adjustments, they represent a reduction
on previous rates and we expect rates for
other major customers to decline as well
in 2009. In 2008, AT&T and Verizon Wireless
accounted for 59% of our U.S. wireless revenues.
See Note 2 to the Consolidated Financial
Statements included in this Report.
.........................
Risks: A significant portion of our U.S.
wireless revenue is derived from a small
number of customers that could build or acquire
overlapping networks.
Our Commnet subsidiary, which accounted for
approximately 34% of our consolidated revenue
in 2008, generates a substantial majority
of its revenues from three national wireless
service providers. In 2008, three national
wireless service providers together accounted
for 85% of Commnet's revenues.
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ATN purchased the CC Communications cellular
network in Nevada in 2008 reported in this
Press Release:
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Atlantic Tele.Network’s Commnet Subsidiary
Acquires Nevada Wireless Operations
Salem, MA (December 31, 2008) . Atlantic
Tele.Network, Inc. (NASDAQ:ATNI) today announced
that its U.S. rural wireless business, Commnet
Wireless LLC, has completed the acquisition
of the wireless network assets of CC Communications,
a telephone company based in Fallon, Nevada,
including equipment, cellular and other spectrum
and towers. The network includes approximately
50 operating cell sites and the licenses
acquired cover over 40,000 square miles and
a population of approximately 61,000 in rural
areas and public lands in western Nevada.
Commnet plans to make additional investments
to expand and enhance the network in 2009.
Commnet also agreed to provide wholesale
wireless services to CC Communications so
that CC Communications can continue and expand
the wireless services they offer to their
customers.
“We are delighted to expand our operations
into Nevada and enter into an ongoing relationship
with CC Communications,” said Louis Tomasetti,
President of ATN’s Commnet Wireless subsidiary.
“With over 400 base stations in rural areas
of the U.S. and a team of talented and highly
motivated engineers, we take great pride
in bringing professional, high.quality telecommunications
services to under.served areas in an innovative,
cost.effective manner. We also are proud
of our record of working with local telcos
and partners like CC Communications. While
we bring economies of scale and expertise
to the table, we are still able to be flexible
and creative in working with strong, knowledgeable
local partners to provide wireless products
and services that are tailored to the needs
of the rural areas of this country. We know
CC Communications to be such a partner and
we look forward to working with them to build
on their success in serving their community.”
"CC Communications is excited to remain
as a wireless provider for our customers
and citizens. Cellular service is very important
due to the areas that we serve being relatively
sparsely populated and the distances our
customers regularly travel. Commnet is a
fine organization that shares our culture
of providing excellent service as well as
providing the most current technologies.
We look forward to a long relationship with
Commnet" said Bob Adams General Manager
of Churchill County Communications.
ATN funded the transaction with cash on hand.
Management expects that the transaction will
be modestly accretive to Commnet’s contribution
to ATN’s net income and operating cash flows
in 2009, subject to the final allocation
of the purchase price to the acquired tangible
and intangible assets.
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Additional Resources:
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