The deal includes spectrum licences, network assets, retail stores and approximately 585,000 subscribers.
ATN’s network covers approximately 4.6 million people in rural areas of Georgia, Idaho, Illinois, North Carolina, Ohio and South Carolina.
AT&T said the acquisition includes spectrum in the 700MHz, 850MHz and 1900MHz bands, which is largely complementary to its existing network.
ATN, which operates under the Alltel brand, uses CDMA technology meaning AT&T will need to convert the network to GSM in order to integrate it. The carrier said it does not expect the transaction to affect cash flow or dilute earnings per share (EPS).
AT&T intends to upgrade ATN’s network to enhance mobile internet service for customers roaming in these rural areas.
The transaction is subject to regulatory and customary approval and is expected to close in the second half of 2013.
