Verizon Acquisition Advances HOT STOCKS

U.S. communications regulators conditionally approved Verizon Wireless’s $757 million purchase of Rural Cellular but required one of the companies to sell licenses in six markets to improve competition.

Verizon Wireless, a venture of Verizon Communications and Vodafone, is seeking to buy Rural Cellular as part of an effort to extend its reach in rural areas.

Verizon Wireless said earlier that the deal was worth $2.67 billion, including the assumption of debt. The company said it expected more than $1 billion in savings from lower roaming fees and operating expenses plus new subscribers.

Only about 40 percent of Rural Cellular’s network runs on CDMA, the most widely used wireless technology standard in the United States, and the remainder runs on GSM, a technology popular in Europe and used by AT&T’s wireless service.

Originally published by The New York Times Media Group.

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