The Department of Justice has ruled that Verizon Wireless must sell assets in six markets in order to complete its acquisition of Rural Cellular. The department said that in order to preserve competition in the mobile phone market, Verizon must divest its assets in all of Vermont, two rural areas in Washington state and one market in New York.
Last July, Verizon announced its plan to acquire Rural Cellular for $2.7 billion, saying the acquisition would allow the company to expand coverage and save on roaming fees.
“These divestitures are necessary to preserve the benefits of competition for residents throughout the state of Vermont and in areas of New York and Washington,” said Thomas Barnett, assistant attorney general in charge of the Department's Antitrust Division, in a statement.
The deal is still awaiting FCC approval.
Verizon Wireless announced a much larger acquisition last week, saying it has agreed to purchase Alltel Wireless for $5.9 billion. Should that deal go through, Verizon would become the country’s largest wireless carrier. That deal will also require approval from the DOJ and the FCC.