12/05/2009 By Maisie Ramsay - Wireless Week ( Source: www.wirelessweek.com )

AT&T swaps Verizon Wireless CDMA to GSM Technology

Rivals AT&T Wireless and Verizon Wireless are swapping assets after government regulators required they divest properties related to each companies’ respective acquisitions of Centennial Communications and FirstNews - May 11, 2009Alltel.

AT&T will pay $2.35 billion in cash for Verizon assets covering 1.5 million wireless subscribers in 18 states, primarily in rural areas. The transaction has not yet been approved by the government but is expected to close in the fourth quarter of 2009.

Verizon was required to divest 2.1 million wireless subscribers in 22 states as well as frequencies and telecom business management assets as a result of regulatory approvals related to its $28.1 billion purchase of Alltel earlier this year.

AT&T will have to convert the Verizon assets from CDMA to GSM Technology. The undertaking is expected to take about a year and cost AT&T about $400 million.

GSM contractors and engineers will work on the RF Design and optimization project to optimize coverage areas that will be swapped from CDMA to GSM/3G, generating more jobs opportunities in US for telecoms professionals.

No news what infrastructure company will supply the GSM/WCDMA equipment for this network roll out and if the HSDPA wireless broadband services will be offered

In turn, Verizon will buy AT&T assets in five areas covering 120,000 subscribers for $240 million as a result of government approvals related to AT&T’s purchase of Centennial Communications in November of 2008.