TeleCorp PCS To Buy Tritel In Stock Deal
TeleCorp PCS Inc., a wireless-phone company that builds and operates networks in affiliation with AT&T Corp., said it will acquire the wireless-phone company Tritel Inc. for about $5.3 billion in stock.</br></br>TeleCorp, based in Arlington, Va., is the largest affiliate of AT&T's big wireless-services unit. National wireless operators such as AT&T, Sprint Corp.'s Sprint PCS business and Nextel Communications Inc. often work with smaller companies such as TeleCorp and Tritel to fill holes in their national footprints.</br></br>In the case of TeleCorp and Tritel, Jackson, Miss., the companies operate wireless networks in certain markets, and both co-brand their service with AT&T. AT&T holds minority equity stakes in both companies.</br></br>Indeed, the deal adds heft to AT&T's wireless network, consolidating two of its largest affiliates and accelerating the growth of its wireless network. It also strengthens TeleCorp's position in the fastgrowing affiliate niche, creating a wireless company with licenses that will cover some 35 million potential subscribers from the Great Lakes to the Gulf of Mexico.</br></br>"This puts together the middle of the country." said Gerald Vento, CEO of TeleCorp. "We can effectively operate in a competitive market with a larger footprint."