Newspaper article THE JOURNAL RECORD

Dobson to Purchase Two Cellular Markets

Newspaper article THE JOURNAL RECORD

Dobson to Purchase Two Cellular Markets

Article excerpt

In the latest step of an aggressive growth strategy, Dobson Communications has entered two new cellular markets with acquisitions totaling about $95 million.

Certain Dobson subsidiaries have acquired Federal Communications Commission cellular licenses and related assets for a rural Ohio cellular market and signed a definitive agreement to acquire the licenses for a rural Texas cellular market.

These acquisitions, together with Dobson's pending acquisition of Sygnet Wireless, will give Dobson a total wireless population base under management of 5.6 million in 10 states.

Oklahoma City-based Dobson has completed the acquisition of the FCC licenses and assets related to the Ohio 2 rural service area from Ohio Wireless Communications for $39.3 million. The licenses include the towns of Sandusky, Fremont, Tiffin and Bellvue in north central Ohio and cover a population base of 262,100.

In addition, Dobson has executed an affiliation agreement with AirTouch Cellular to lease certain operating assets from AirTouch Cellular and to market the Ohio 2 RSA under the AirTouch brand name.

Dobson also announced that it has a definitive agreement with A-1 Cellular Communications to buy the licenses and assets related to the Texas 10 RSA for about $55 million, subject to closing adjustments. The Texas 10 market is in north-central Texas, has a population base of 317,900 and includes the towns of Palestine, Athens, Hearne and Corsicana.

The agreement is subject to normal regulatory approvals and is expected to close in the first quarter of 1999.

Dobson has acquired the vast majority of its cellular markets in the last two years. In 1997, the company acquired markets with a combined population base of 1 million. In the first quarter of this year, the company acquired a south Texas RSA with a population base of 326,000 and in the second quarter, the company acquired several California RSAs with a combined population of 748,000. …

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