Aug. 5, 2007

By Hannah Guillaume/Frontiersman

MAT-SU - Valley residents say they'd like to see AT&T acquire Cellular One, but only if it beats their current coverage. “I'm not real satisfied with Cellular One's service and coverage in Alaska,” said Dave Sutphin of Wasilla. “If AT&T could compete with ACS and GCI, I think it would be good.”

Sutphin, a Cellular One customer with an LG cellular phone, said he isn't worried his rates will go up or down. He just wants good service and an iPhone.

The iPhone, made by Apple Inc., is a cellular phone that includes technology that can take pictures, get e-mails, visual voice mail, text messaging and browse the Internet with a multi-touch screen. Since its debut last month it's been flying off shelves as fast as retailers can stock them. But if you want one, you have to have AT&T as your cellular provider, which has an exclusive contract for iPhone service.

Cellular One, a rural cellular phone provider, is based in Oklahoma as Dobson Communications. AT&T has agreed to acquire the company for $2.8 billion. Cellular One has provided roaming services to AT&T since 1990.

McCall Butler, spokeswoman for AT&T, said the acquisition still requires regulatory approval by the FCC and U.S. Department of Justice. Cellular One runs an 850 megahertz spectrum that the FCC and Department of Justice would be required to approve so that the acquisition doesn't break anti-trust laws or create a monopoly.

“We're hoping to finalize those by the end of this year,” Butler said. “Cellular One customers will become AT&T customers.”

That means the iPhone and all of AT&T's perceived pros and cons will be coming to Alaska. About 1.7 million Cellular One customers overall would be affected, Butler said. AT&T already reports 63.7 million customers.

Butler couldn't say if the acquisition means cheaper, more expensive, or unchanged rates for Cellular One customers in Alaska. If the deal is approved, the transition should be seamless for customers, she said. The only noticeable difference Butler can predict is a change of letterhead on bills and the types of wireless products offered to Alaskans.

Margaret Brawley of Wasilla said she hasn't been happy with her Cellular One plan in five years and has fond memories of AT&T.

“I was more happy with AT&T. I hope they do buy it,” she said. “I've stayed with Cellular One only because rates, not customer service.”

Cellular One has been late sending her monthly bill on several occasions and its representatives are rude when she calls to inquire about her bill, Brawley said.

Brawley, an engineering student, said she has an analog Nokia cellular phone she trusts and isn't interested in the iPhone or other digital wireless products AT&T offers.

Warren Henry, vice president of investor relations for Dobson Communications, said he isn't sure if current customers with contracts will get better rates or special offers resulting from the acquisition. Cellular One Lifeline, the service that offers cellular service for $1 a month to qualified, low-income customers, is a mandated service that shouldn't change if the acquisition goes through.

Henry couldn't confirm if the name of the Cellular One Sports Center in Anchorage would change. No matter the differences, Cellular One customers should be very excited, he said.

“I think AT&T is as committed as [Cellular One] has been to be the leading wireless telecommunications company in Alaska,” Henry said. “They're bringing a lot of fire power.”

Contact Hannah Guillaume at 352-2284 or hannahguillaume@yahoo.com.