Rural Cellular

Rural Cellular Corporation, commonly abbreviated RCC and associated with the Unicel mobile network, was a United States telecommunications company focused on providing cellular service in rural and smaller regional markets. The company was established in 1990 by Rick Ekstrand through a partnership of 40 telephone companies that collectively held five cellular licenses. Its initial service area was located north and west of St. Cloud, Minnesota, giving the company a regional rather than nationwide operating profile. RCC expanded through a combination of direct operation and acquisitions. After completing its initial public offering in February 1996, the company pursued acquisitions that increased the population it directly marketed services to from approximately 600,000 people to about 6.4 million. Its network and customer footprint eventually extended across several distinct United States regions, including the Midwest, Northeast, Northwest, and South. At the time Verizon Wireless agreed to acquire the company, RCC served approximately 716,000 customers in New Hampshire, Maine, Vermont, New York, Massachusetts, Alabama, Mississippi, Minnesota, North Dakota, South Dakota, Wisconsin, Kansas, Idaho, Washington, and Oregon. The company’s consumer-facing mobile network was operated under the Unicel name. This made Rural Cellular an example of a regional wireless operator whose value was based on spectrum holdings, local network infrastructure, rural coverage, and an established subscriber base. Its market position complemented the networks of larger national carriers by serving territories where regional ownership and operating relationships could provide broader or more specialized coverage. On July 30, 2007, Verizon Wireless announced an agreement to acquire Rural Cellular Corporation. The transaction was intended to expand Verizon Wireless’s network coverage and strengthen its position in a number of rural and regional markets. The acquisition was completed on January 25, 2009, for approximately $2.67 billion in cash and assumed debt. Following the transaction, Rural Cellular ceased to operate as an independent telecommunications company, and its assets and operations became part of Verizon Wireless. The company is therefore a defunct corporate telecommunications brand, although its historical importance lies in the consolidation of regional wireless networks into larger national carrier platforms.

Rural Cellular Corporation was formed in 1990 by Rick Ekstrand through a partnership of 40 telephone companies. Those companies held five cellular licenses, and the new organization was created to operate and develop wireless service in a regional territory. Its original service area was north and west of St. Cloud, Minnesota, reflecting the company's initial concentration on rural and smaller-market coverage rather than nationwide mobile service. The company changed scale after its initial public offering in February 1996. RCC used acquisitions to broaden its operating footprint and increase the population to which it directly marketed wireless services. The directly marketed population grew from approximately 600,000 to 6.4 million. Through this expansion, the company developed a presence in the Midwest, Northeast, Northwest, and Southern regions of the United States. Its mobile operations were associated with the Unicel network and brand. By the time of its proposed sale, Rural Cellular served about 716,000 customers across a geographically dispersed set of states: New Hampshire, Maine, Vermont, New York, Massachusetts, Alabama, Mississippi, Minnesota, North Dakota, South Dakota, Wisconsin, Kansas, Idaho, Washington, and Oregon. The breadth of this footprint made RCC strategically relevant to national carriers seeking to expand coverage and consolidate regional wireless assets. Verizon Wireless announced an agreement to acquire Rural Cellular Corporation on July 30, 2007. The stated strategic rationale was the expansion of Verizon Wireless network coverage. The transaction was completed on January 25, 2009, for approximately $2.67 billion in cash and assumed debt. After completion, Rural Cellular no longer operated as an independent company. Its network, customer relationships, and related operations were absorbed into Verizon Wireless, bringing the history of RCC as a standalone regional carrier to an end.

• 2009

  Acquisition is completed

  [1]Rural Cellularen.wikipedia.org

  Verizon Wireless completed its acquisition of Rural Cellular on January 25 for approximately $2.67 billion in cash and assumed debt.

• 2007

  Verizon Wireless announces acquisition agreement

  [1]Rural Cellularen.wikipedia.org

  Verizon Wireless announced an agreement to acquire Rural Cellular on July 30, with network coverage expansion identified as a principal objective.

• 1996

  Initial public offering

  [1]Rural Cellularen.wikipedia.org

  RCC completed its initial public offering in February and subsequently pursued acquisitions to expand its wireless service footprint.

• 1990

  Rural Cellular Corporation is founded

  [1]Rural Cellularen.wikipedia.org

  Rick Ekstrand founded RCC through a partnership of 40 telephone companies holding five cellular licenses. The company initially served an area north and west of St. Cloud, Minnesota.

A regional and rural wireless operator serving smaller and underserved United States markets through locally focused cellular networks and the Unicel brand.

• Mobile network

  Unicel

  Unicel was the mobile network operated by Rural Cellular. It provided regional cellular communications services across parts of the Midwest, Northeast, Northwest, and Southern United States. The network represented RCC's consumer-facing wireless offering and supported the company's strategy of serving rural and smaller regional markets. Following Verizon Wireless's acquisition of RCC, the Unicel operations were absorbed into the acquiring carrier's broader network structure.

• 2007

  Agreement to sell Rural Cellular to Verizon WirelessM&A

  Background

  Rural Cellular operated a geographically dispersed regional wireless business with approximately 716,000 customers and coverage across multiple United States states. Verizon Wireless sought to expand its network coverage and strengthen its regional position.

  Action taken

  Verizon Wireless announced an agreement on July 30, 2007, to acquire Rural Cellular Corporation.

  Aftermath

  The transaction was completed on January 25, 2009. Rural Cellular ceased to operate as an independent company and its operations became part of Verizon Wireless.

  Acquisition consideration. Approximately $2.67 billion in cash and assumed debt (Transaction completed January 25, 2009)

  Source

1. 1Rural Cellularen.wikipedia.org