Dobson Communications is aiming to expand its footprint by purchasing Highland Cellular, which operates in markets that are mostly south of Dobson's territories.
The $95 million deal will give Dobson access to Highland Cellular markets in West Virginia as well as two adjacent counties in Virginia. Highland Cellular has 51,000 subscribers and covers a market with a population of roughly 352,000, which nearly doubles Dobson's market population in West Virginia. Under the terms of the deal, Dobson gains access to 25 MHz of 850 MHz spectrum over West Virginia 7 RSA, McDowell and Wyoming Counties in WV 6 RSA, and Bland and Tazewell Counties in Virginia 2 RSA.
Highland also owns PCS spectrum over West Virginia 5 RSA, McDowell and Wyoming Counties in WV 6 RSA, most of WV 7 RSA, and six additional, adjacent counties in Virginia, according to Dobson.
Dobson Communications, a subsidiary of American Cellular Corporation, expects to win approval for the deal in the second half of 2006.
Separately, Dobson posted first quarter revenue of $287.6 million, a 5.8-percent year-over-year increase. The company also narrowed its net loss to $13.3 million, or 8 cents a share, from $25.4 million, or 19 cents a share, a year ago.
For full-year 2006, the company expects to attract up to 20,000 new subscribers.