Grant Gross
Senior Writer

DOJ requires Verizon to divest for merger

news
Jun 10, 20082 mins

Verizon will have to sell off Unicel's mobile phone infrastructure in six geographic areas in order to complete its $2.7 billion acquisition of the company

Verizon Communications must sell off portions of Unicel’s mobile network in order to complete its $2.7 billion acquisition of the company, the U.S. Department of Justice said Tuesday.

The DOJ will require Verizon to sell off Unicel’s mobile phone infrastructure in six geographic areas in Vermont, New York state and Washington state, including Burlington, Vermont, the agency said. The DOJ’s Antitrust Division filed a civil lawsuit Tuesday in U.S. District Court for the District of Columbia, asking the court to block the proposed acquisition unless Verizon agrees to the DOJ’s recommendations. The DOJ also filed a proposed consent decree that would resolve the issues.

The acquisition, as proposed, would have “substantially lessened competition to the detriment of consumers of mobile wireless telecommunications services in those areas, potentially resulting in higher prices, lower quality and reduced network investments,” the DOJ said in a news release.

Unicel’s legal name is Rural Cellular. Rural Cellular is the 10th largest mobile provider in the U.S., providing mobile service to nearly 790,000 subscribers in 15 states, the DOJ said.

Verizon is the second largest mobile service provider in the U.S., based on the number of subscribers. Verizon Wireless serves more than 65 million customers in 49 states.

In the geographic areas covered in the DOJ complaint, Verizon and Rural Cellular combined serve more than 60 percent of mobile subscribers, the DOJ said.

The acquisition also is subject to review by the U.S. Federal Communications Commission. The state of Vermont joined the DOJ in the complaint and proposed consent decree.

Verizon spokespeople were not immediately available for comment.

Grant Gross

Grant Gross, a senior writer at CIO, is a long-time IT journalist who has focused on AI, enterprise technology, and tech policy. He previously served as Washington, D.C., correspondent and later senior editor at IDG News Service. Earlier in his career, he was managing editor at Linux.com and news editor at tech careers site Techies.com. As a tech policy expert, he has appeared on C-SPAN and the giant NTN24 Spanish-language cable news network. In the distant past, he worked as a reporter and editor at newspapers in Minnesota and the Dakotas. A finalist for Best Range of Work by a Single Author for both the Eddie Awards and the Neal Awards, Grant was recently recognized with an ASBPE Regional Silver award for his article “Agentic AI: Decisive, operational AI arrives in business.”

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