AT&T-Dobson Deal Triggers Buyout Speculation in Rural Wireless Sector

6:30 am on July 3, 2007 | Category: Business, Corporate, Wireless

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America’s rural cell phone carriers gained ground on the stock market yesterday, after telecom giant, AT&T Inc., agreed to acquire the regional wireless carrier, Dobson Communications.

SunCom Wireless traded 13.5% higher on the NASDAQ yesterday, while Centennial Communications and Rural Wireless, gained 8.5% and 5%, respectively.

“They’re certainly up because of M&A speculation,” commented Michael Nelson, an analyst with the Stanford Group.

Despite speculative gains in the short term, however, analysts were not convinced that any buyout deals were immediately forthcoming. SunCom, for example, could be a logical acquisition target of Deutsche Telekom’s T-Mobile USA in the longer term, but Nelson notes that T-Mobile is more interested in upgrading its own data networks for the time being.

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    1. The onsite wastewater industry, in certain areas, requires an alarm system that is currently done with a computor by auto dialer. We have investigated wireless ib the past but have not seen enough to make the change with our customers. We make controls for the wastewater onsite industry. PLease give me a few details about service and technology. Primarily in Texas but one of our OEM customers is in several other states. Thank you

      Comment by Bob Venable — July 5, 2007 #

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