AT&T completes Dobson deal; may make bid for EchoStar

19 Nov 2007

The largest US wireline and wireless telco, AT&T Inc, has closed its USD2.8 billion acquisition of rural cellular carrier Dobson Communications Corp. AT&T says it expects synergies of around USD2.5 billion as a result of the deal. The full range of AT&T products will be made available at over 200 Dobson retail outlets within the next few weeks. Randall L. Stephenson, AT&T chairman and CEO, said: ‘This transaction will produce substantial benefits for customers of both AT&T and Dobson. AT&T’s customers will enjoy deeper coverage in rural and suburban areas. Dobson’s customers will have access to AT&T’s full portfolio of innovative products and services.’

Separately, AT&T is reportedly considering making a bid for the satellite TV operator EchoStar by the end of this year. Reuters quotes a report from Barrons which says AT&T’s interest has been sparked by a recent fall in EchoStar’s share price, which dropped 24% in a month.

United States, AT&T, Dobson Communications Corporation