site Search:


 
   
story category
AT&T To Buy Centennial Communications
A cozy $944 million acquisition...
by Karl Bode Saturday 08-Nov-2008 tags: business · wireless
Tipped by tmpchaos See Profile
While AT&T recently stated that the sluggish economy was resulting in tightening credit, and employees fear looming layoffs, AT&T has had a busy week full of small acquisitions. The telco became the largest Wi-Fi operator via this week's $275 million acquisition of Wayport. The telco has also announced plans to acquire Centennial Communications Corporation for $944 million in cash. The deal would add 1.1 million wireless subscribers to AT&T, as well as give them Centannial's 850 MHz spectrum holdings in states including Indiana, Louisiana, Michigan, Mississippi, Ohio and Texas. From an e-mail to employees:

The Centennial acquisition will enhance AT&T's wireless coverage for customers in largely rural areas of the Midwest and Southeast United States and in Puerto Rico and the U.S. Virgin Islands. The transaction will also enhance network coverage for our consumer and business customers, and is expected to create long-term value for AT&T's stockholders. . . The acquisition is subject to regulatory approval, the approval of Centennial's stockholders, and other customary closing conditions. AT&T is working to obtain approvals by the end of the second quarter of 2009.

The subscriber additions will still only make AT&T the second largest wireless carrier, behind the newly fused Alltel and Verizon Wireless.

view: topics flat text 
Post a:

ropeguru
Premium
join:2001-01-25
Grafton, WV

This is why...

they are implementing all the crazy low caps on their DSL plans. They figure with all the overage charges, they will recoup all their expenditures real quick.

ThrowDemsOut
If you can't convince 'em, confuse 'em
Premium
join:2002-03-03
Mullica Hill, NJ
kudos:4

Re: This is why...

said by ropeguru:

they are implementing all the crazy low caps on their DSL plans. They figure with all the overage charges, they will recoup all their expenditures real quick.
I don't think so. Acquisitions are done with specific strategic targets in mind. This one was so that A&T can keep pace with Verizon Wireless in numbers of customers.

Any decision on caps was made for reasons concerning the upcoming flood of video clogging up their DSL infrastructure and obtaining enough money to expand that infrastructure.
--
My BLOG .. .. Internet News .. .. My Web Page
Ask yourself one question: 'Do I feel lucky?' Well, do ya punk?

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
Reviews:
·AT&T DSL Service

Re: This is why...

said by ThrowDemsOut:

Any decision on caps was made for reasons concerning the upcoming flood of video clogging up their DSL infrastructure and obtaining enough money to expand that infrastructure.
And now, edited somewhat:

Any decision on caps was made for reasons concerning the upcoming flood of (competition video services) clogging up their (future profit expectations), DSL infrastructure (being obsoleted and requiring upgrades to keep pace with said competition) and obtaining enough money to expand (stock price and executive compensation).
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

NetAdmin1
CCNA

join:2008-05-22
said by ThrowDemsOut:

Any decision on caps was made for reasons concerning the upcoming flood of video clogging up their DSL infrastructure and obtaining enough money to expand that infrastructure.
In other words, using business "logic" to solve an engineering problem without all the engineering and technical talk that most executives can't or don't want to understand.
--
---
Drilling for more oil is akin to giving a methhead the keys to the meth lab.

mrchris
Out and around
Premium
join:2002-10-01
North Babylon, NY
Less goddamn competition. You and your Big Business propaganda, TKJM.

S_engineer
Premium
join:2007-05-16
Chicago, IL

Cool...

"Centennial has a 20-year history of doing what is best for our customers, and this transaction is a natural next step for us," said Michael J. Small, CEO of Centennial." ....just as death is the natural end to life!

Welcome to the Death Star!
--
"For duty and humanity!"
- Moe Larry and Curly (MEN IN BLACK, 1934)...These are the guys we have in Congress

Smile__
Premium
join:2008-10-10
New Freedom, PA

Re: Cool...

When I lived in Fort Wayne IN for a year back in 2003 all I heard was nothing but BAD about them... Glad to see the investors finally sold.. Customers will be much happier..
patcat88

join:2002-04-05
Jamaica, NY
kudos:1

Re: Cool...

said by Smile__:

When I lived in Fort Wayne IN for a year back in 2003 all I heard was nothing but BAD about them... Glad to see the investors finally sold.. Customers will be much happier..
No they won't. Low level management and rank and file workers never get layed off or fired when a telecom company is bought. A POTS telco has fixed employees positions which can't be removed without replacing them.

Smile__
Premium
join:2008-10-10
New Freedom, PA

Re: Cool...

What are you talking about? I'm talking about the customers and not the employees.. Centennial is a wireless company my friend..
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Cool...

And don't forget. ATT Mobility is seperate from AT$T POTS. Two seperate companies. They just use the same brand AT$T. and are owned by the parent the same as VZW and VZ.
patcat88

join:2002-04-05
Jamaica, NY
kudos:1
said by Smile__:

What are you talking about? I'm talking about the customers and not the employees.. Centennial is a wireless company my friend..
Whoops, I thought Centennial was a ILEC with cellular business like Cincinnati Bell.

Smile__
Premium
join:2008-10-10
New Freedom, PA

Re: Cool...

Nope... TDMA and GSM provider in IN and LA..
Drebel

join:2002-01-26
San Juan, PR

Last of the CDMA carriers in PR.

Now the question is what will happen to Sprint in Puerto Rico. Centennial Wireless and Sprint are the only two surviving CDMA carriers in Puerto Rico, and Sprint has a roaming agreement with centennial for roaming in Puerto Rico. (Sprint's Network in PR leaves a lot to be desired they don't cover the whole island and their coverage indoors is spotty, I would roam all the time indoors). Something to be said about centennial is their wireless coverage in Puerto Rico is probably one of the best now their customer service SUCKS. Had their service for exactly one week and returned it.

Sprint = CDMA
Claro = GSM
Open Mobile = GSM
TMobile = GSM
AT&T = GSM
Centennial = CDMA (soon GSM)
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Last of the CDMA carriers in PR.

some Cent is GSM--like the Midwest areas.

RainWind7

join:2000-10-20
Van Wert, OH
I used to work for Centennial at the Fort Wayne call center. I would say being bought by AT&T is a good thing. The customer service and sales forces are terrible. I worked back when shady pro-rating was all the rage. It was nothing but calls from angry customers who weren't told about their short billing cycle and wanted to tell all their friends their new phone number and chat. The overages a person can achieve during a 3-day billing period are staggering.

Maybe with some new guidance they'll be a better company. Not that AT&T is any shining gem of customer service and perfection... but they're better than Centennial.

I can't complain too much about their service quality. You can't beat it for the price. Verizon was about the same as far as coverage for me, but the price difference was big. With the way my wife chews through minutes 5 PM nights and free incoming are important.

When it comes to customer service and billing, they couldn't get much worse. I still get randomly charged for text messages I never sent. Its usually like 1 per month per line. Rather than cramming they actually removed features I wanted, which came as a total surprise. I also occasionally get some bogus roaming charges. Never anything huge. I think their billing screwups have only totaled around $5 or so for me, and it was all credited back, but others haven't been so lucky. They also had me being taxed as an Indiana resident when I live in Ohio. I thought that was amusing.

Smile__
Premium
join:2008-10-10
New Freedom, PA

Re: Cool...

I always loved trying to activate a phone for Centennial.. That was fun.. Fill out a form and fax over for activation. When I could go online with T-Mobile, ATT or Verizon or call in for USCellular to activate...

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
Reviews:
·AT&T DSL Service
said by S_engineer:

"Centennial has a 20-year history of doing what is best for our customers, and this transaction is a natural next step for us," said Michael J. Small, CEO of Centennial." ....just as death is the natural end to life!

Welcome to the Death Star!
Yeah I can imagine negotiations. "Prepare to be assimilated. Resistance is Futile...."


--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

Baldy18
Team Anandtech 4 Life.

join:2001-08-29
Niles, MI

When I had Centennial

in the South Bend, IN area I found that Centennial by far had the best coverage in the area. Verizon was a close second. However, a large number of incorrect charges on bills and horrible customer service at their atrocious stores made me switch to Sprint. Now I guess I'm pretty much the only happy Sprint customer.
Madtown
Premium
join:2008-04-26
Madera, CA

That much money in a time like this?

So while the rest of us can't even afford to pay for gas and over $20.00 or over for movie theater, and 100s of dollars for a vacation at some fancy hotel with the family or get that nice brand new car or anything like that because of the economy, it amazes me that AT&T can spend that much money. Despite of that, I sure hope we as the consumers can benefit from all this.

bobgwen

join:2001-07-07
Bartow, FL

Re: That much money in a time like this?

And ya know what?? They will moan and groan come contract time next spring about how poor sad ole at&t is. No money for the employees. They are just barely able to make it under these hard times.
--
brought to you by Carl's Jr.
Esteban Colberto for President of Cuba

David
I have a son- d3
Premium,VIP
join:2002-05-30
Granite City, IL
kudos:68
Reviews:
·AT&T Southwest
·DIRECTV
·AT&T Midwest
·Google Voice

Re: That much money in a time like this?

said by bobgwen:

And ya know what?? They will moan and groan come contract time next spring about how poor sad ole at&t is. No money for the employees. They are just barely able to make it under these hard times.
I hate to agree with that viewpoint, but it was true last time.
--
If you have a topic in the direct forum please reply to it or a post of mine, I get a notification when you do this.
Koetting Ford, Granite City, illinois... YOU'RE FIRED!!

backfeed
is giving feedback

join:2002-12-16
Peru, IN
Reviews:
·Comcast

What about Free Incoming Minutes and text?

I have Centennial, they really have pretty good coverage here in North central Indiana. What I feel is one of their best features is that all the plans feature free incoming minutes and text. Unlimited. AT&T and Verizon do not, at least not on the affordable plans. In fact Centwire and Us Cellular both offer that in the area. They even advertize that the incoming is free and that you can use it as your primary phone without the concern of minutes used by incoming calls. I wonder if the CentWire customers will flock to US Cellular to keep that feature?..It will be a very interesting process.
I guess we will have to wait and see..
--
There is 10 types of people. Those whom can read Binary and those who cannot.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
Reviews:
·WOW Internet and..
·Time Warner Cable

Re: What about Free Incoming Minutes and text?

Well since CentWireless customers do not have contracts ATT can and will most likely make you change your pricing plan.

I looked into getting CentWireless and was told i could sign up and roam in Ohio on TM but was told that over 50% of my calls that would br roaming they'd drop me. the only good thing is no contract. I just had to purchase a phone.

IF TM was smart they'd move in and counter the offer. TM needs a good share of that wireless spectrum in MI. But if the new Gov't allows ATT to take over they make TM sell some of its spectrum to TM in areas of MI. Especially the south east area where ATT and Cent both have coverage and TM roams on Cent.
BPLSUCKS

join:2006-04-26
Grand Ledge, MI

Re: What about Free Incoming Minutes and text?

Actually we do have contracts available. When you sign up you can get a 2 year contract and after the contract is up you don't have to renew but just pay the same monthly. I think I am gonna renew it and see if I can get a longer one so AT&T can't fuck with my free incoming (which is what I mostly use) and text messaging (600 outgoing free incoming). Fuck AT&T...get away from my centennial...I hope the FTC doesn't allow this for anti-trust, monopoly, and competition reasons. The CEO is gonna get an angry letter from me about this (certified no less with signature confirmation). AT&T can go to hell...centennial has some of THE BEST customer service around. Their engineer department helped me through step by step to program a phone I brought with me because they couldn't OTA program it. If you have centennial renew your contract ASAP if this shit does happen.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: What about Free Incoming Minutes and text?

interesting about the contract. everyone i have talked to there said they don't offer contracts anymore to compete on a much larger scale.
BPLSUCKS

join:2006-04-26
Grand Ledge, MI

Re: What about Free Incoming Minutes and text?

They might not for new subscribers but for us they still allow us to sign a new one. We joined way back when they still had regional plans (ironically that is what we have now) and we had to sign one. However we may switch to the national so long as we can have a contract...this buy-out is even more reason. I really do hope it falls through or the FTC blocks it.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: What about Free Incoming Minutes and text?

i always thought T-Mobile would pick up Cent. that buyout would make a much smarter move on their end. Their coverage in MI is very spotty compared to AT$Ts.
ohiomark

join:2005-02-23
Fort Wayne, IN

I wish it weren't so.

I knew this day would come and that I would never retire from Centennial Wireless, but I didn't think it would come now!!!

printscreen

join:2003-11-01
Juana Diaz, PR
Reviews:
·Choice Cable TV
·Coqui/PRTC

Too bad....

Centennial is the only carrier in Puerto Rico that since its arrival in 1997 has never changed hands. It was the first provider with an all-digital network down here.

I wonder what will happen with this company in Puerto Rico. Down here it is not just a wireless carrier. They are a CLEC here and own a pretty big fiber optic network and provide other services such as land lines and broadband to a number of large commercial clients. Many companies have Centennial as a backup carrier for telephone traffic.

I have been a Centennial wireless customer for 6 years and would hate to see it being eaten by AT&T. I have heard more complaints from AT&T customers than from Centennial. Interestingly, lots of people have a bad opinion from this company without being their customer.

Boomer86
never say roadkill
Premium
join:2002-10-18
Walden, NY

They've been OK to me, so far

I jumped on a Dobson Cellular One contract the day before their merger with AT&T was finalized; I got a more competitive price and plan than the "death star" now offers.

So far the service has been decent; my Blackberry Curve 8300 doesn't support 3G so I can't comment on that. One minor billing dispute was resolved with one phone call; they even increased a discount I was already receiving without asking!

If Centennial has better pricing, plan for plan, get into a contract NOW so you're grandfathered in (unless you're waiting to get an iPhone). AT&T will let you keep your Centennial calling plan until you choose to abandon it or "upgrade" to a more expensive AT&T plan.
--
Don't pay ME back, pay it forward.

ctceo
Premium
join:2001-04-26
South Bend, IN
Reviews:
·magicjack.com
·AT&T U-Verse
·AT&T Midwest

Old Chart

Click for full size
The Blob
Does anyone remember this chart from a while back. I'd like to see an updated one.

ctceo
Premium
join:2001-04-26
South Bend, IN

Re: Old Chart

Does anyone know the creator of this chart. I can't find the original website.

printscreen

join:2003-11-01
Juana Diaz, PR
Reviews:
·Choice Cable TV
·Coqui/PRTC

This transaction might face some problems in Puerto Rico

Just seen a newspaper report about this transaction in a local paper. Sorry it is in Spanish.

»www.elnuevodia.com/diario/notici···l/488080

What the article says in few words is that Centennial is a major provider of wireless and landline services here in PR and AT&T might face some objections from competitor wireless carriers. Here we have AT&T, Sprint, T-Mobile, Open Mobile and Claro besides Centennial. AT&T became one of the largest after merging with Cingular and would become the largest after buying Centennial. AT&T may need to split the local Centennial operation and stick with the wireless part.

Centennial has become such a major player in the communications business here that they even provided cable TV service to about one third of the island after buying and merging together several local cable operators. They sold the cable operation a few years ago.

Anname

@verizon.net

Service

Well I have and Centennial for several years and have had no problems with anything from service to billing. I do have family that have AT & T and they have terrible service they can't get it in places and customer service they said is bad. I even called AT & T once to see what the could offer me and they could not match what I have with Centennial. I feel at Centennial I am a person even when I walk into a store they treat me very well on the phone. So AT & T I hope you can live up to good service that I have received from CENTENNIAL.

df

@mchsi.com

Re: Service

What I love about centennial is their roaming is excellent.

If you go out of state, CENT uses ATT or TMO tower, whichever is available. So when my ATT friend doesnt have any signal, I more than likely always have it because my phone just finds the TMOB tower. I always found this to be an excellent feature, because the free incoming still worked.

Saturday, 11-Feb 23:04:55 Terms of Use & Privacy | feedback | contact | Hosting by nac.net - DSL,Hosting & Co-lo
over 12.5 years online! © 1999-2012 dslreports.com.