AT&T - Centennial deal moving forward

FORT WAYNE, Ind. (WANE/AP) - It appears the days are numbered for the Centennial Wireless name. While the company, which began in Northeast Indiana as Century Cellular in 1988, celebrates 21 years of business, it is one step closer to becoming a part of AT&T, Inc.

The sale of Centennial Communications Corp . to AT&T was announced on November 7, 2008. Centennial spokesperson Phil Laux says that changes within the nation’s capital and high-ranking government offices like the FCC have delayed the sale.

This week, however, the transaction cleared a major hurdle.

"The Department of Justice, which is one of the approvals that’s needed, late Tuesday night or Wednesday morning, gave the approval. So that's one check mark and we still have a number more to go," Laux told NewsChannel 15’s Matt McCutcheon.

In order to get the green light from the Department of Justice and the Louisiana Attorney General, AT&T had to agree to sell off assets in eight markets in Louisiana and Mississippi in order to proceed with its proposed $944 million acquisition of Centennial.

That's needed because officials believe the combined company would have a monopoly in those areas. The deal still needs FCC and other regulatory approvals.

This isn’t the first selling of assets that the company has had to do as a result of the pending merger. In May, AT&T agreed to sell certain Centennial wireless assets in five markets to Verizon Wireless for $240 million.

Laux says Centennial has more than 1.2 million wireless customers, while giant AT&T has more than 80 million and is the nation’s second-largest wireless provider. Laux says strong regional providers like Centennial have become more attractive in recent years to big players as they look to clinch the title of the nation’s largest wireless provider.

"AT&T I think reached a point where by buying us, they could improve their coverage here dramatically," Laux said Friday afternoon.

Centennial provides wireless service to customers in about half-a-dozen states, including Indiana, Ohio, and Michigan . Centennial also has a major presence in Puerto Rico.

Late Tuesday, the Wall, New Jersey-based Centennial Communications reported income of $19.5 million, or 17 cents per share, on $258.9 million in revenue for its fiscal 2010 first quarter, which ended in August. Centennial’s U. S. wireless division is headquartered in Fort Wayne, off of West State Boulevard.

When you factor in the wireless division headquarters, along with customer service agents at the Illinois Road call center, and the associates at the eleven-area stores, Laux says Centennial employs around 650 people in Northeast Indiana.  What the future holds for them remains to be seen.

"Only AT&T knows that and when they've acquired us, then we'll find out," Laux said.

The sale is expected to close sometime in the fourth quarter, or before the end of 2009. In early 2010, Laux said, we should learn more about what the Centennial-AT&T integration means for the local workforce.

In the meantime, the Federal Communications Commission is continuing to review the wireless merger. Under the terms of the deal, Centennial stockholders will receive $8.50 per share in cash.