GTE Acquires Ameritech Midwest Wireless Assets

Irving, TX-based GTE Corp. has acquired approximately half of Ameritech's wireless properties, significantly beefing up GTE's wireless portfolio in the Midwest. The company will pay $3.27 billion in cash for the properties, which include 1.7 million subscribers and more than 12.9 million total POPs.

In a joint venture with GTE, investment company Georgetown Partners will participate in the acquisition and will hold a minority equity interest in the properties. The boards of directors of GTE, Ameritech, and Georgetown Partners have approved the transaction. The sale, which is contingent on the closing of the SBC-Ameritech merger, eliminates all overlapping cellular properties that result from the SBC-Ameritech agreement expected to be finalized in mid-1999.

Up to 1,700 Ameritech Cellular employees will transfer to GTE as a result of the sale; other Ameritech Cellular employees will continue to support wireless operations of the combined SBC-Ameritech. SBC and Ameritech say employment levels in Ameritech's five-state region will not be reduced due to their proposed merger.

The Ameritech properties add three key U.S. markets—Chicago, St. Louis and Central Illinois—to GTE's existing wireless operations in 17 states. When GTE and Bell Atlantic finalize their merger, the combined company will have a wireless footprint encompassing nearly two thirds of the largest US markets. In total, the merged company, based on today's numbers, would have approximately 13 million customers, making it in terms of subscribers the largest wireless operator in the US.