AT&T picks up Centennial Communications for $944 million

For those who stick to one coast or the other, you may have never even heard of Centennial Communications. Not to worry, though, as AT&T just made said company entirely more relevant. Shortly before heading out of the office on Friday, AT&T decided it fitting to acquire Centennial for a few bucks shy of a billion, or $944 million for those seeking precision. The transaction will beef up AT&T's coverage for customers in rural areas of the Midwest and Southeast United States, not to mention in Puerto Rico and the US Virgin Islands. As always, the acquisition must first pass regulatory approval, the approval of Centennial's stockholders and "other customary closing conditions" before the little guy's 1.1 million subscribers officially make the shift, but we certainly don't expect that to be an issue.

[Via The New York Times, thanks to everyone who sent this in]

[Luke @ Nov 8th 2008 5:37AM]

That was cheap then.

[OneLove @ Nov 10th 2008 12:18PM]

AT&T is the devil!

[allislost @ Nov 8th 2008 7:01AM]

Wow pumps your brakes kid...

Well guess what AT&fuckenT... i'm a goddamn banana.

[Jakob @ Nov 8th 2008 7:12AM]

What?!

[Sobczek @ Nov 8th 2008 7:43AM]

Second that. Huh?

[Chuck @ Nov 8th 2008 8:06AM]

I'm sure somebody will let us know when they figure out what he's talking about.

Perhaps one of the lesser minds could explain it to us. (Flashpoint?)

[XIYL @ Nov 8th 2008 8:17AM]

I think it might be a reference to something, but I don't know.

[allislost @ Nov 8th 2008 9:29AM]

HA! someone finally asked WHY instead of "HUH" or "WHAT"...

1st line - Tropic Thunder, the white/black dude.

2nd line - http://www.youtube.com/watch?v=55PLMSPijmc Part of "Rejected" by Don Hertzfeldt

[allislost @ Nov 8th 2008 12:18PM]

wow... low ranked for providing a reason.

[lawyer bird @ Nov 8th 2008 5:17PM]

yeah...no

did you really expect anyone to catch your obscure references?

[Bob @ Nov 8th 2008 8:26AM]

YEAH!!!!! I am with Centennial and their coverage kicks T-Mobile and and AT&T's butt in northern Indiana. That's AWESOME, now I can (maybe) get an iPhone! =)

[Bob @ Nov 8th 2008 8:27AM]

Though I do like my G1 a LOT now... I guess we'll see. =)

[High Ranks make you sterile @ Nov 8th 2008 8:30AM]

Cool for you!

[lawrra @ Nov 9th 2008 1:27AM]

so now you can carry over the same plan from centennial, but pay more for it through at&t? that's hardly an improvement. centennial doesn't have much of a data network in the midwest.

[Bob @ Nov 9th 2008 10:21AM]

Actually, since Centennial charges $40 for only 250 MB of data, cost-wise, this would be a HUGE improvement. Network-wise, they have been working on rolling out a UMTS 3G network, though they have kept it very quiet, so their data network may be better than we know. Lastly, cost-wise, I've been researching the difference in cost and it's not all that much of a difference.

[Bob @ Nov 9th 2008 11:06AM]

@ lawrra

I just went through their site again and checked pricing. For me to have exactly what I have now with Centennial - 3 phones, 2 with texting (150 per month), and 5PM nights and weekends - I pay $120 monthly (not including taxes / fees). Between the 3 phones, WITH unlimited incoming calls, we use close to 500 anytime minutes between 7AM and 5PM. Sooo... if we just start calling after 7PM instead of 5PM (pretty easy to do) a comparable service with AT&T with nights and weekends starting at 7PM would cost me about $97... Looks like a savings to me. The only thing that will offset it is because I would then be getting 2 of $30 unlimited data plans (as opposed to $40 per plan for only 250MB with Centennial) with AT&T.

[zephxiii @ Nov 8th 2008 8:50AM]

Hell yea!!!!!!!!! I'm on AT&T in northern (east) indiana too, AT&T only has 1900 band here. BRING IT ON, and centennial's 850mhz network too!

[Paul2241 @ Nov 8th 2008 9:19AM]

I'm originally from northern indiana, and a former employee of Centennial Wireless in Mishawaka, this is GREAT news, no more 30 month contracts, outrageous rate plans, and outdated phones for ridiculous prices! Everyone up there enjoy the great equipment you're about to be able to use, and thank god ATT is going to have some 850 coverage up there as building penetration, as it is terrible inside my dad's house who still lives in Elkhart.

[mabhatter @ Nov 8th 2008 10:37AM]

what company were you working for? My wife's had Centennial for years. They have better small town coverage, better rural coverage, and better rates.. $5-10$ per month cheaper than the nationals. Their contract terms are the most reasonable and their customer service is better. We've had Sprint, T-Mobile and have AT&T for home.. they are all awful at customer service and billing.

Hoping somebody blocks this move... it's rotten.

[Bob @ Nov 9th 2008 10:26AM]

Actually this will make AT&Ts coverage in Indiana better if they keep the network (Im guessing they will). Also, they do get the phones quite a while after they are available (usually) but they are getting better. What they are not getting better at is their $250 per line cancellation fees, 30 month contracts and crappy data plan pricing. I'm willing to pay an extra $10 to $20 per month for access to the newest phones (specifically the iPhone) and better data plan pricing. I'm all for this.

[k @ Nov 9th 2008 3:36PM]

Will my Centennial plan be grandfathered in to AT&T? I've been with Centennial since '97 and have an awesome plan, with a monthly credit. Wondering if I"m going to lose it when the merge takes place!

[HotSauce @ Nov 8th 2008 9:51AM]

With Verizon eating up Alltel, this is good news for AT&T.. regardless the small number of subscribers it's acquiring.

[mabhatter @ Nov 8th 2008 11:13AM]

I'm waiting for the merger announcement commercial where they dumb Red shirt Verison kid buys off Chad and he gets in the dork van and drive off leaving his happy customers on the curb.

[LG @ Nov 8th 2008 10:01AM]

In PR they have a good reception but their plans and cell phones sucks....

[Shelbz @ Nov 8th 2008 10:31AM]

This is great news, Centennial used to be a roaming partner for Cingular and shortly before the AT&T name change the agreement ended in central Louisiana which caused a gaping hole in coverage.

[hawksfan03 @ Nov 8th 2008 10:53AM]

i'm from the midwest (Iowa) and i've never heard of this company

[Odineye @ Nov 8th 2008 7:31PM]

Based upon their coverage maps, apparently Iowa isn't in the midwest...

The coverage stops at the Mississippi.

[Bob @ Nov 9th 2008 10:31AM]

They are a "regional" company. By their agreement you have to make "at least 50% of your calls" in their "primary service area" which is Indiana and small(er) areas of the surrounding states, but there is some around Texas too I believe (and Puerto Rico and the VI I believe). Anyway, they do have nationwide coverage, but they don't advertise outside their primary service area due to the 50% calls rule above. This is probably why you have never heard of them.

[lolkatz @ Nov 8th 2008 12:06PM]

I've been a centennial user for years in Puerto Rico, and the coverage is decent only on the island. The reason I keep coming back to it is because of the cheap rates and plans.

My only real problem is the lack of good phones available for the company. Free Razr's don't really interest me anymore. Maybe This will finally diversify the stock.

[ivan1420 @ Nov 8th 2008 12:24PM]

Puerto Rico FTW!!

[Jack Storm @ Nov 9th 2008 2:44AM]

While i was down there my Tilt's reception was great but in some points even with a full ATT bar i would roam off on to centennial for a few minutes then go back on ATT. Alot of my family uses Centennial down there, so now hopefully when this goes through they can talk to me for free at all times.

[itsswanny @ Nov 8th 2008 4:10PM]

Centennial carries the N95.

[Bob @ Nov 9th 2008 10:33AM]

Don't forget to mention it costs $400 for a 30 month contract, which you can buy an unlocked one on eBay for about that price, less if you get lucky. Another example of their crappy phone pricing.

[Odineye @ Nov 8th 2008 7:29PM]

This rocks!

I'm in Northern Illinois, and while coverage is decent in more populated areas, I have specific areas I go to where there's no coverage at all. If the maps on Centennial's site can be believed, it looks like iPhone coverage in those areas is about to get much, much better.

[loosely_coupled @ Nov 9th 2008 12:12AM]

What they need to do is create roaming agreements with Verizon for their dual-mode UTMS/EVDO phones!

[fr3z3rburn @ Nov 9th 2008 3:13AM]

I just hope this doesnt fuck up my $5 a month unlimited text that ive had since texting existed.

[k @ Nov 9th 2008 3:38PM]

I'm wondering about my $10 a month credit I've had for years with Centennial.....I DON'T want to pay a fortune for a cell plan....

[Bob @ Nov 9th 2008 10:21AM]

Why the hell did I get low ranked for saying I like my G1?

[Fernando @ Nov 9th 2008 2:53PM]

What I dont understand is that Centennial Communications in Puerto Rico is a CDMA provider!!! So what gives?

[Drexl @ Nov 9th 2008 9:02PM]

You're right. Centennial in Puerto Rico is CDMA, not to mention that AT&T already has good coverage and a sizable market share on the Island. I'd suspect that they would have to divest the Puerto Rico market to get approval for transaction from the local Telecommunications Commission (and probably the FCC).

The thing is the Centennial operation in Puerto Rico would be a perfect fit for Verizon Wireless, since they don't have local coverage and rely on a roaming agreement with Sprint.

[K777 @ Nov 9th 2008 3:38PM]

I'm concerned about losing my $10 a month credit I've have w/Centennial for years.....wondering if it will be grandfathered in to AT&T or whether they'll be money hungry. I've been very satisfied with Centennial...

[jeesusfreek @ Nov 10th 2008 1:50AM]

weird, i didn't know anybody from the midwest read this blog.

well, as the case may be, I'm from warsaw, indiana, in bloomington now for IU (i never realized people have never heard of centennial wireless either)

I'm with big red (and loving my unlimited texting to everyone + 1400 shared minutes for what I have to pay as a college student .. $35 a month with taxes) since daddy has a corporate discount.

good to know there's like at least 4 engadget readers an hour north of me.

as for the merger, good for them I guess. Centennial has always seemed like a floundering company in my eyes (and their commercials are homey but cheesy)...a week ago I saw them touting the RAZR v3 on their commercials...granted, for free, but still.

[Juanita @ Nov 13th 2008 1:49AM]

I litterally just switched from AT&T to Centennial and then this happens. Im sorry but in our area Centennial is so much better than AT&T. Ever since they switched the towers in our area to the 3G network I had nothing but problems. Im not very happy about his. I hope that they dont do to centennial customers what they did to US unwired Customers several years ago.