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`Verizon Buys Cellular One
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`A headline in the Nov. 16 Business section incorrectly identified the company that is being bought by Verizon
`Wireless Inc. The company is Price Communications Corp. (Published 11/17/2000)
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`By Christopher Stern
`November 16, 2000
`Verizon Wireless Inc. has snapped up Price Communications Corp. in a $2.1 billion deal that will help the New Jersey-based
`telephone company fill a hole in its cellular business in the southeastern United States.
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`Verizon Wireless has agreed to pay $1.5 billion in stock and assume $550 million in Price debt. The deal depends on Verizon
`Wireless, now a wholly owned subsidiary of Verizon Communications, making a public stock offering by Sept. 30.
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`If the IPO, which has already been delayed once, fails to take place by the deadline, either party can call off the deal.
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`Assuming the deal is completed, Price, which now markets its service under the Cellular One brand, will add 500,000 subscribers
`to Verizon, mostly in Georgia, Florida, South Carolina and Alabama.
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`Verizon, formerly known as Bell Atlantic Corp., recently renamed itself after completing its merger with GTE Corp. It is currently
`the nation's largest wireless carrier, with 26.3 million voice and data customers.
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`The deal comes just as the Federal Communications Commission is scheduled to auction a huge block of airwaves beginning Dec.
`12. Verizon has registered with the FCC to participate in the auction in an effort to fill regional holes in its national coverage. The
`deal relieves some pressure on Verizon Wireless to bid on spectrum in the Southeast.
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`One source familiar with auction revenue predicted the upcoming auction could raise as much as $10 billion. Analysts have grown
`concerned about the high price some companies have been willing to pay for spectrum at auctions. Airwaves sales in Britain and
`Germany raised $80 billion for their respective governments this summer but sent the stock prices of the winning bidders down as
`investors worried the telecommunications companies had overpaid.
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`However, subsequent auctions in Italy and Holland were less heated, possibly indicating that wireless companies had learned a
`lesson and are no longer willing to pay such high fees for airwaves licenses.
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`Verizon Wireless spokesman Brian Wood said there are significant advantages to acquiring a company instead of bidding for
`licenses at an auction. "Obviously it's better to get a living, breathing business rather than starting from scratch," Wood said.
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`But Verizon will face considerable additional expense in acquiring Price, which uses a different communications standard than
`Verizon.
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`Wood said that Verizon will build a new network next to Price's existing infrastructure and, over time, convert customers to the
`new technology. Eventually, each Price customer will need a new handset to make calls.
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`Legg Mason Wood Walker associate analyst Craig Mallitz estimates it will cost Verizon at least $100 million to convert the 500,000
`customers to the new standard.
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` Comments
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`Smart Mobile Technologies LLC, Exhibit 2021
`Page 2021 - 1
`IPR2022-00807, Apple Inc. et al. v. Smart Mobile Technologies LLC
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