Verizon acquires Unicel

Verizon acquires Unicel


1,100 workers accept job offers after buyout
By George Chappell
    BDN Staff

Verizon Wireless has purchased the parent company of Unicel, officials of both cellular telephone companies said Friday.

“The sale closed Aug. 6,” Barb Ostrander of Unicel’s marketing department in Alexandria, Minn., said Friday.

Unicel has 1,100 employees nationwide who have received employment offers and have accepted them, Ostrander said. She said the companies began working on the sale more than a year ago.

A joint venture of Verizon Communications and Vodafone, Verizon Wireless announced Aug. 7 that it had completed its purchase of Rural Cellular Corp., doing business as Unicel, for $2.66 billion in cash and assumed debt.

The purchase will increase Verizon Wireless’ licensed coverage area by 4.7 million people and will add licenses covering markets in Maine, New Hampshire, Massachusetts, Alabama, Mississippi, Minnesota, North Dakota, South Dakota, Wisconsin, Idaho, Washington and Oregon, Verizon Wireless said in a press release.

“What will happen, going forward, is that Verizon Wireless will build out the network to serve the Unicel customers in Maine,” Robin Nicol of the Verizon Wireless office in Basking Ridge, N.J., said in a telephone interview.

Nicol said the sale has nothing to do with Verizon’s landline telephone service, only wireless. Verizon recently sold its landline service for Maine, New Hampshire and Vermont to Fair Point Communications.

“Wherever Unicel has customers now, that’s where Verizon Wireless will be having customers,” Nicol said.

Verizon Wireless began Aug. 7 serving customers in Unicel markets that are being merged with its operations and will continue to use the Unicel name for the next several months as it works to integrate networks.

Customers in markets to be integrated are receiving letters informing them about the recently completed purchase.

The Camden Select Board recently received the announcement and plans to discuss the merger at its meeting Tuesday night.

Also, before the network conversion in an area is complete, customers will receive a letter from Verizon Wireless explaining the service transition. Customers who will require a new handset due to network enhancements will receive information about handset options, which will include a variety of free and low-cost devices. Customers do not need to take any action at this time.

During the network conversion period, nearly every Unicel-branded store will remain open to serve customers, the company said. Unicel will be re-branded as Verizon Wireless in phases when customers are transitioned to the Verizon Wireless network and billing conversions are completed, beginning early in 2009 and continuing through mid-year.

The completion of the Rural Cellular purchase required approvals by the Department of Justice and the Federal Communications Commission.

Verizon Wireless expects to realize approximately $1 billion in reduced roaming and operations expenses, the company said.

Verizon Wireless announced its agreement to acquire Rural Cellular in July 2007, pending regulatory approval. The FCC approved the transaction earlier this month.

For more information, go to www.verizonwireless.com. To preview and request broadcast-quality video footage and high-resolution stills of Verizon Wireless operations, log on to the Verizon Wireless Multimedia Library at www.verizonwireless.com/multimedia.

gchappell@bangordailynews.net

236-4598

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Comments
4 comments on this item

Well, THIS is going to be interesting. Unicel was GSM, the most-used cellphone technology in the world - same as AT&T and T-Mobile. Verizon, OTOH, is CDMA, which AFAIK offers no benefits over GSM (to the average user) and is used only in the USA and Canada by some carriers.

First up, I expect this means that existing Unicel customers will have to get new phones if they want to use the Verizon network outside the existing Unicel service area (as in "Here we go again".)

But the Verizon website says "Verizon Wireless will maintain Rural Cellular’s [Unicel's parent] existing GSM networks to continue serving the roaming needs of other GSM carriers’ customers. "

The choice may be to keep your GSM phone that will work in the old Unicel areas and roam in most of the world (but at a cost) or switch to a CDMA phone that roams less expensively in Canada and the US but works nowhere else.

Time will tell, I guess. Maybe the BDN can find a tech-savvy reporter to ask them and we can get more info than the press release?

One step forward, two steps back.

Oops - missed this detail.

So it's new phones for all Maine Unicel customers then.

Enjoy!

Verizon Wireless plans to deploy CDMA service in Rural Cellular’s existing GSM markets and convert the GSM customers to CDMA service. Verizon Wireless, however, anticipates maintaining Rural Cellular’s existing GSM networks to continue serving the roaming needs of other GSM carriers’ customers.

According to major studies cell phones can cause tumors and cancer. Kids should never use cell phones and adults should keep cell phone use to a minimum. They won't talk about that though.

Well ,Well ,Well , Maybe just Maybe we as unicel customers will be able to drive along the road anywhere and stop and make a call or receive a call??? There are so many plces that we cannot make or receive calls due to no towers. Lets sit back and see what will happen now with this new venture. As far as new phones go I like the one I have now. Waiting for more information as we all are......

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