OKLAHOMA CITY, Dec. 23, 2003 (PRIMEZONE) -- Dobson Communications Corporation (Nasdaq:DCEL) has entered into a definitive agreement to acquire the assets of NPI-Omnipoint Wireless, LLC ("NPI"), which provides GSM wireless service to markets in northern Michigan, for approximately $28 million.
NPI owns markets with a total population (POPs) of 1.2 million. Its built-out GSM network currently covers approximately 1.0 million POPs. NPI has approximately 38,000 subscribers in Michigan, and of these, approximately 60 percent are on postpaid calling plans. NPI's network infrastructure includes 372 cell sites, of which 100 are company-owned. According to NPI's independently audited financial statements for 2002, the company reported total revenue of approximately $20.7 million for that period.
The transaction is expected to close in the second quarter of 2004 and is subject to regulatory approvals and other customary closing conditions.
NPI's 1900 MHz wireless licenses include several Basic Trading Areas (BTAs) in northern Michigan, which extend north from Grand Rapids and Saginaw to the Canadian border, and are bordered on the east and west by Lake Huron and Lake Michigan. The NPI markets include Muskegon/Grand Haven, Traverse City, Petoskey, Gaylord, Mt. Pleasant, Tawas City, and Sault Ste. Marie, as well as the major highways and road systems in northern Michigan.
Dobson currently serves Michigan Rural Service Areas (RSAs) 1, 3 and 10 in the northern part of the state and is in the process of acquiring Michigan RSA 5 from Cingular Wireless. The addition of NPI's markets would broaden Dobson's market coverage in northern Michigan by an additional 650,000 POPs.
Upon closing the transaction, Dobson plans to increase its capital expenditures by approximately $12 million to upgrade network capacity, to provide GPRS data services and to expand coverage in northern Michigan. Dobson is on schedule to overlay its TDMA networks in the continental United States with GSM/GPRS technology by March 31, 2004. The Company plans to complete the overlay of its Alaska network with GSM/GPRS by June 30, 2004.
"This is a strategic acquisition that will significantly strengthen our competitive position in northern Michigan," said Everett R. Dobson, chairman, chief executive officer and president of Dobson Communications. "The expansion of our service area footprint in northern Michigan accomplishes two strategic goals. The larger 'home' network will make our product offerings more attractive to customers. Secondly, the increased footprint will significantly reduce our off-network roaming expenses in the region."
About Dobson Communications
Dobson Communications is a leading provider of wireless phone services to rural markets in the United States. Headquartered in Oklahoma City, the Company owns wireless operations in 16 states, with markets covering a population of 11.1 million. The Company serves 1.6 million customers. For additional information on the Company and its operations, please visit its Web site at http://www.dobson.net.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These include, but are not limited to, statements regarding Dobson's plans, intentions and expectations. Such statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, but are not limited to, gaining regulatory approval for its acquisition of NPI properties in Michigan. A more extensive discussion of the risk factors that could impact these areas and Dobson's overall business and financial performance can be found in Dobson's reports filed with the Securities and Exchange Commission. Given these concerns, investors and analysts should not place undue reliance on forward-looking statements.