AT&T Buys 79 Territories from Verizon

In a deal that will affect more than one million subscribers, AT&T has agreed to buy 79 "mainly rural" areas from Verizon for $2.35 billion. Verizon was forced to sell the territories due to regulatory requirements after they purchased Alltel.

The areas are mainly Alltel territories that overlap with Verizon's own coverage, but also some Verizon territories and areas covered by Rural Cellular, another carrier Verizon bought last year. AT&T is getting spectrum licenses, cell towers and 1.5 million subscribers in the deal. Since AT&T phones aren't compatible with Alltel or Verizon phones, these subscribers will need new phones to use AT&T's network.

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