Unicel

Unicel

Infobox_Defunct_Company
company_name = Rural Cellular Corporation
company_
fate = Acquired by Verizon Wireless
foundation = 1990
defunct = 2008
location = Alexandria, Minnesota
key_people = Richard P. Ekstrand, President & CEO
industry = Communications Services
products = Telecommunications

Unicel is a brand of mobile phone service from Rural Cellular Corporation. It originated in Unity Maine. Service is provided in northern Minnesota, northern New England, Mississippi, Alabama, eastern Washington and Oregon, and adjacent areas. [http://www.unicel.com/aboutus/investor_relations/licensed_area/] The company is headquartered in Alexandria, Minnesota. Until 2005, RCC also operated 850 MHz cellular service under the brand name Cellular 2000.

Unicel offers 850 MHz and 1900 MHz (PCS) service largely using GSM technology, but much of its Minnesota territory uses competing cdmaOne instead. Legacy AMPS and D-AMPS phones are commonly in use as well. The use of both GSM and CDMA reflects the fact that the Unicel service area has been assembled through the acquisitions of other wireless carriers.

On 30 July 2007, Rural Cellular Corporation announced [ [http://phx.corporate-ir.net/phoenix.zhtml?c=85091&p=irol-newsArticle_print&ID=1034183 Rural Cellular - Investor Relations Press Release] ] it agreed to be acquired by Verizon Wireless (a CDMA carrier). Verizon said that it plans to convert RCC's GSM customers to CDMA technology, but it will continue to operate RCC's current GSM network in order to generate roaming revenue. On 4 October 2007, Rural Cellular Corporation announced that its shareholders voted to approve the merger agreement providing for the acquisition of Rural Cellular Corporation by Verizon Wireless for approximately $2.67 billion in cash and assumed debt.

On 4 December 2007, Verizon announced that it would swap some of its RCC properties with AT&T in exchange for some properties from Dobson Cellular, which AT&T recently acquired. [ [http://www.informationweek.com/showArticle.jhtml?articleID=204700537 AT&T, Verizon To Swap Rural Wireless Assets - Wireless - InformationWeek ] ]

On 10 June 2008, The Department of Justice has said that in order to acquire Rural Cellular Corporation, Verizon Wireless must divest some of RCC's existing wireless assets including Vermont, New York, and Washington states. The DOJ has filed a lawsuit that will force Verizon Wireless to comply with the divestiture before the acquisition can proceed. [ [http://www.pcworld.com/businesscenter/article/146920/doj_requires_verizon_to_divest_for_merger.html PC World - Business Center: DOJ Requires Verizon to Divest for Merger ] ]

The FCC approved the acquisition on August 5, 2008. Approval depended on the sale of towers in six key market areas, including all of Vermont, in order to ensure that the acquisition wouldn't be anti-competitive in those areas. Verizon must also continue to maintain Unicel's GSM towers in other markets if it does not choose to sell them. [ [http://www.burlingtonfreepress.com/apps/pbcs.dll/article?AID=/20080805/NEWS/80805017/-1/NEWS05 FCC approves Unicel buyout — but Vermont assets must be sold | burlingtonfreepress.com | The Burlington Free Press ] ]

On August 7, 2008, Verizon Wireless announced they had completed the purchase of Rural Cellular Corporation for $2.66 billion in cash and assumed debt. [ [http://news.vzw.com/news/2008/08/pr2008-08-07.html Verizon Wireless Completes Purchase Of Rural Cellular ] ]

References


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