Dobson considering themselves for sale; T-Mobile might want to jump on this - Tmobile User Community

terryjohnson16 · #1 06-25-2007, 01:57 PM

Short version of the story is at:
Dobson Considers Sale, Too (Phone Scoop)

Long in dept version:
Dobson Considers Sale of Firm - WSJ.com

Quote:

Dobson Considers Sale of Firm
By AMOL SHARMA and DANA CIMILLUCA
June 25, 2007

Rural wireless provider Dobson Communications Corp. is considering strategic options, including a sale of the company, people familiar with the matter said, as deal activity among the telecom industry's smaller players quickens.

The company, which has a market capitalization of $1.73 billion and debt of about $2.67 billion, has hired Morgan Stanley to explore its options, a person familiar with the matter said. It is possible the company could opt not to pursue a sale. A spokesman for Dobson didn't return calls for comment.

The move comes as private-equity firms are increasingly striking high-profile telecom deals, leading to higher share prices for some smaller telecom companies in recent weeks.

Dobson, of Oklahoma City, markets wireless services in rural and suburban areas under the Cellular One brand, serving about 1.7 million customers. It gets significant revenue from roaming partnerships with major U.S. wireless operators AT&T Inc. and Deutsche Telekom AG's T-Mobile USA Inc.

For potential buyers, Dobson and other rural operators offer access to markets where penetration of cellphones isn't as high as in major metropolitan markets, leaving more room for future growth. Another appeal is that a larger operator could later acquire the company, people in the industry say.

Dobson operates in several Midwestern states, parts of the Southwest, Alaska and upstate New York. It has expanded its reach by acquiring smaller operators. Dobson's competitors include such carriers as Alltel Corp., Rural Cellular Corp. and US Cellular.

Two private-equity firms agreed last month to acquire Alltel, the nation's fifth-largest cellphone company by subscribers, in a deal valued at $26.3 billion. Earlier this month, Silver Lake and TPG's TPG Capital LLC announced a deal to purchase telecom-equipment maker Avaya Inc. for about $8.2 billion.

Dobson's stock price has climbed steadily in recent months, partly on buyout speculation in the rural wireless sector, and was at $10.09 at 4 p.m. Friday in composite trading on the Nasdaq Stock Market.

Dobson got 22% of its overall revenue last year through roaming partnerships, but the economics are beginning to sour as competition intensifies in rural markets and large carriers build out networks to previously underserved areas.

Another risk for a buyer: Dobson receives funding from the federal government's "universal service" fund to finance its build-outs in high-cost areas. The Federal Communications Commission is considering a cap on how much carriers like Dobson could receive.

Write to Amol Sharma at amol.sharma@wsj.com and Dana Cimilluca at dana.cimilluca@wsj.com

Scooby214 · #2 06-25-2007, 02:32 PM

Hmmm... It would definitely give T-Mobile an edge coverage wise. I just hope Dobson isn't purchased by AT&T.

Dobson does have much of rural Oklahoma covered, and they are the main roaming partner in Oklahoma for T-Mobile. Dobson doesn't have a network in the Metro Okla. City area, where they are based.

terryjohnson16 · #3 06-25-2007, 02:36 PM

T-Mobile should jump on this. AT&T would have to pay T-Mobile if T-Mobile bought Dobson.

Scooby214 · #4 06-25-2007, 02:42 PM

I can see lots of possibilities if T-Mobile bought Dobson. Since T-Mobile would have some significant coverage that is lacking with AT&T...

Much of Dobson's network in Oklahoma is 850, but I would be fine with T-Mobile keeping it at 850 for better rural coverage. At least in my area, there would be little overlap between Dobson coverage and T-Mobile's existing coverage.

greenblood · #5 06-25-2007, 03:06 PM

I see T-Mobile and Dobson will join together
T-Mobile will get 850 coverage in Dobson market
Dobson will get HSDPA/HSUPA service from T-Mobile
a good mutual agreement

Scooby214 · #6 06-25-2007, 03:13 PM

Quote:

Originally Posted by greenblood

I see T-Mobile and Dobson will join together
T-Mobile will get 850 coverage in Dobson market
Dobson will get HSDPA/HSUPA service from T-Mobile
a good mutual agreement

Do you think they would keep the individual branding for the different networks, or would the Dobson network become part of T-Mobile?

greenblood · #7 06-25-2007, 04:14 PM

see Sprint and Nextel
but this integration is 9999x easier because both use GSM/UMTS

chokaay · #8 06-25-2007, 05:24 PM

They'd BETTER get Dobson... OR ELSE!!!!

With all the other carrier buyouts and mergers going on around us, I can't help but wonder when T-mobile is going to make a move... if EVER!!!

Scooby214 · #9 06-26-2007, 09:15 AM

Quote:

Originally Posted by greenblood

see Sprint and Nextel
but this integration is 9999x easier because both use GSM/UMTS

I bet Sprint wishes they could have a do-over, and trade Nextel for Alltel. I think we could benefit more from acquiring Dobson than Sprint did from acquiring Nextel.

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode