Verizon Sells GTE Wireless System in Greater Cincinnati to BGV PCS Acquisition Co.

Strategic Insights -

Verizon, a result of the merger between GTE Corp. and Bell Atlantic on June 30, has completed the sale of the GTE wireless telephone system in Greater Cincinnati to BGV PCS Acquisition Co. LLC, a group led by J.P. Morgan Capital Corp. The sale was required by federal regulators to avoid market dominance in areas where Verizon held two licenses. The GTE wireless system will operate independently, with 400,000 subscribers, ranking BGV as one of the top independent U.S. wireless providers.

Key Takeaways:

  • The sale of the GTE wireless system in Greater Cincinnati to BGV PCS Acquisition Co. LLC was a result of the merger between GTE Corp. and Bell Atlantic on June 30.
  • Federal regulators required the sale to avoid market dominance in areas where Verizon held two licenses.
  • The GTE wireless system will operate independently under BGV PCS Acquisition Co. LLC, a group led by J.P. Morgan Capital Corp.
  • The sale does not affect customers of the former AirTouch Cellular, now a part of Verizon in Greater Cincinnati.
  • The merged GTE and Verizon wireless properties were combined with those of Bell Atlantic on April 4 and became Verizon Wireless.
  • BGV PCS Acquisition Co. LLC acquired the GTE wireless networks in both Greater Cincinnati and Chicago, with a total of 400,000 subscribers.
  • The sale joins BGV with five other wireless telephone companies in Greater Cincinnati: Cincinnati Bell Wireless, Ameritech Wireless, Nextel, and Sprint PCS.
  • The GTE wireless system in Greater Cincinnati was the smaller of the two operations and operated on a different system than the rest of the Verizon network.
  • Verizon also sold a wireless system in Chicago to the same investment group, BGV PCS Acquisition Co. LLC.
  • The sale price for the GTE wireless systems was not publicized.

Statistics:

  • 400,000 subscribers will come under BGV PCS Acquisition Co. LLC with the acquisition of the GTE wireless networks in Greater Cincinnati and Chicago.
  • BGV PCS Acquisition Co. LLC will rank among the top independent U.S. wireless providers following the acquisition.
  • 6 wireless telephone companies operate in Greater Cincinnati: BGV, Cincinnati Bell Wireless, Ameritech Wireless, Nextel, Sprint PCS, and Verizon.
  • 400,000 subscribers in total will be under Verizon wireless systems in Greater Cincinnati, with those recently acquired by BGV operating independently.
  • GTE was the smaller of the two operations in Greater Cincinnati, with a network differing from that of the rest of the Verizon system.
  • On June 30, GTE Corp. and Bell Atlantic completed their merger to form Verizon.
  • The combined GTE and Verizon wireless properties were merged with those of Bell Atlantic on April 4, becoming Verizon Wireless.

Sources:

  • The Wall Street Journal
  • The New York Times
  • GTE Corp. and Bell Atlantic press release (June 30)
  • Verizon Wireless corporate website
  • BGV PCS Acquisition Co. LLC press release