SNET
We go beyond the call.
227 Church Street
New Haven, Connecticut 06506 News Release
For further information, contact: Bill Seekamp
(203) 771-2136
November 22, 1994
SNET SIGNIFICANTLY EXPANDS CELLULAR BUSINESS IN
BOSTON-NEW YORK CORRIDOR
SNET (NYSE:SNG) announced today that it has reached
definitive agreements with Bell Atlantic Corporation
(NYSE:BEL) and NYNEX (NYSE:NYN) to purchase certain
cellular properties that are within or contiguous to areas
already served by SNET Mobility. The properties to be
purchased include all of Rhode Island and the New Bedford,
Massachusetts area now owned by Bell Atlantic as well as
NYNEX's ownership of 80 percent of the Pittsfield,
Massachusetts market and a 16.1 percent interest in a
cellular partnership currently 82.5 percent owned and
managed by SNET.
The acquisition will add approximately 2.3 million
people - or POPs - to SNET's cellular service area for a
combined market covering a population of over 5.5 million
POPs, and increases SNET's POPs by 70 percent. POPs is an
industry term referring to population of the cellular area
served. Under the agreement, SNET Mobility will pay
approximately $450 million in cash for a combination of
controlled and minority interests.
"With the purchase of these cellular properties,
we are seizing a unique opportunity to dramatically increase
our presence in the fastest growing
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segment of the telecommunications industry," said Daniel J.
Miglio, SNET Chairman and CEO. "All of these properties are
within or adjacent to cellular properties we already serve,
significantly expanding our position in the strategic New
York - Boston corridor. We look forward to bringing our
high quality wireless communications service to an expanded
marketplace in one of the most communications-intensive
corridors in the world. This acquisition improves the
economies of scale in our cellular business and it
strengthens our competitive position in the wireless
marketplace. This represents an excellent business growth
opportunity for SNET and its investors and is consistent
with our overall business strategy of investing in key
growth areas of telecommunications including wireless, long
distance and the information superhighway we are building in
Connecticut called I-SNET."
SNET Mobility currently serves an area consisting of
over 3.2 million POPs. This area includes the metropolitan
areas of Hartford, Bridgeport, New Haven and New London,
Connecticut and Springfield, Massachusetts as well as the
rural service areas of Windham and Litchfield, Connecticut
and Franklin, Massachusetts.
Closing of this transaction is subject to the
consummation by Bell Atlantic and NYNEX of their cellular
joint venture, the formation of which requires their sale of
these properties. It is also subject to approval by the
Federal Communications Commission and the US Department of
Justice. In addition, the acquisition of the Pittsfield
property is subject to a right of first refusal by a third
party.
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SNET is an independent telecommunications company that
offers through its subsidiaries network and information-
management services and communications systems; in-state,
national and international long-distance
communications service; directory publishing and advertising
services; and cellular mobile phone and paging services.
APPENDIX A
The final page of the News Release is entitled
"SNET Mobility Service Area" and contains two
graphics depicting geographical areas. The states of Connecticut,
Massachusetts and Rhode Island are featured in one graphic.
Those areas in Connecticut and in the Springfield, Massachusetts
corridor where SNET Mobility's current ownership interest
will increase are highlighted in diagonal stripes.
The to-be-acquired contiguous cellular properties not
currently served by SNET Mobility (Pittsfield and
New Bedford, Massachusetts areas along with the
entire state of Rhode Island) are highlighted
in black. The second graphic depicts the same information
as the first graphic and also outlines the east coast south to
Washington, D.C.