PENDING SALE OF U.S. RETAIL WIRELESS BUSINESS

6 Months Ended

Jun. 30, 2013

PENDING SALE OF U.S. RETAIL WIRELESS BUSINESS

PENDING SALE OF U.S. RETAIL WIRELESS BUSINESS

4.  PENDING SALE OF U.S. RETAIL WIRELESS BUSINESS

On January 21, 2013, the Company and a subsidiary entered into a Purchase Agreement with AT&T Mobility LLC (“AT&T”) to sell certain of the wireless assets used in the Company’s Alltel business (the “Alltel Sale”). Under the terms of the agreement, AT&T will purchase the operations in an all-cash transaction valued at approximately $780 million. For the three and six months ended June 30, 2013, the Alltel business constituted approximately $103.4 million and $211.5 million, respectively, or 59% and 61%, respectively, of the Company’s consolidated revenues and $3.8 million and $9.1 million, respectively, or 19% and 24%, respectively, of the Company’s consolidated operating income. Although the consummation of the Alltel Sale is subject to customary closing conditions, including approval of the Federal Communications Commission, the required waiting period under the Hart Scott Rodino Antitrust Improvements Act of 1976 has expired and the Company anticipates completing the transaction in the second half of 2013. Since the Company’s application for FCC approval is still pending, the Company has reported the Alltel results in continuing operations.