Powertel

Powertel Inc. was a regional American wireless network operator headquartered in West Point, Georgia. The company operated cellular and personal communications services in the Southeastern United States, combining earlier analog cellular assets with a newer GSM digital network. Its business was built through a sequence of corporate reorganizations, acquisitions, wireless-spectrum purchases, and asset dispositions rather than through a long-lived consumer brand independent of its parent companies. The company’s roots reach back to May 1989, when Interstate Cellular, Inc. was incorporated in Georgia as a wholly owned subsidiary of ITC Holding Company, Inc. Interstate Cellular was established to acquire cellular telephone licenses and to develop and operate cellular systems. In April 1991, InterCel, Inc. was incorporated in Delaware and became the owner of the assets of Interstate Cellular and WHI Partnership. InterCel subsequently became the principal corporate vehicle behind the business. InterCel became publicly traded on NASDAQ in October 1991 under the ticker ICEL. In January 1993, it acquired Unicell, a cellular communications provider serving Maine. The transaction expanded the company beyond its Southeastern operations; the combined business was described as serving approximately 20,000 subscribers across a market area covering about 780,000 people. InterCel later agreed to sell Unicel to Rural Cellular Corporation in December 1996, refocusing the business on its Southeastern wireless strategy. A major strategic shift occurred in February 1994, when InterCel and other investors formed Powertel PCS Partners L.P. to develop, construct, and operate a GSM mobile network covering portions of nine Southeastern states. In March 1995, the partnership submitted winning bids for wireless spectrum in those states. InterCel later acquired all outstanding interests in the partnership, turning the Powertel PCS operation into a wholly owned subsidiary and enabling the company to build its own digital GSM network. In June 1997, InterCel changed its corporate name to Powertel, Inc. and changed its NASDAQ ticker from ICEL to PTEL. The renamed company retained a mix of analog cellular operations and developing GSM PCS capabilities. On May 3, 1999, Powertel sold its analog cellular operations to Public Service Cellular, Inc. for $89 million. This divestiture sharpened the company’s focus on digital GSM services and its PCS network. Powertel’s independent corporate existence ended on May 31, 2001, when Deutsche Telekom AG acquired the company. Powertel was made a subsidiary of VoiceStream Wireless, Inc., another wireless operator acquired by Deutsche Telekom on the same day. The transaction placed Powertel within Deutsche Telekom’s United States wireless structure. Powertel is therefore best understood as a historical regional network operator and a predecessor business within the development of Deutsche Telekom’s American mobile operations, rather than as an active standalone consumer brand today.

Powertel originated with Interstate Cellular, Inc., incorporated in Georgia in May 1989 as a wholly owned subsidiary of ITC Holding Company, Inc. Its initial purpose was to acquire cellular licenses and build and operate cellular telephone systems. In April 1991, InterCel, Inc. was incorporated in Delaware and became the owner of the assets of Interstate Cellular and WHI Partnership. InterCel became publicly traded on NASDAQ in October 1991 under the symbol ICEL. The company expanded through the January 1993 acquisition of Unicell, a Maine cellular provider. The combined operation served approximately 20,000 subscribers in a market area with a population of about 780,000. In December 1996, InterCel agreed to sell Unicel to Rural Cellular Corporation, reducing its exposure to the Maine market and supporting a greater focus on the Southeast. InterCel’s most important development was its move into GSM-based personal communications services. In February 1994, InterCel and other investors formed Powertel PCS Partners L.P. to develop, construct, and operate a GSM network in parts of nine Southeastern states. The partnership won spectrum bids in March 1995. InterCel subsequently acquired all outstanding interests in the partnership, making Powertel PCS a wholly owned subsidiary and beginning construction of a digital GSM network on the acquired spectrum. In June 1997, InterCel changed its name to Powertel, Inc., and its NASDAQ ticker changed from ICEL to PTEL. The renamed company operated both legacy analog cellular services and newer digital PCS services during the transition between wireless technologies. On May 3, 1999, Powertel sold its analog cellular operations to Public Service Cellular, Inc. for $89 million. The sale represented a strategic concentration on GSM digital services and the company’s PCS network. Powertel’s standalone corporate history concluded on May 31, 2001. Deutsche Telekom AG acquired Powertel and made it a subsidiary of VoiceStream Wireless, Inc. Deutsche Telekom acquired VoiceStream on the same day. The transaction brought Powertel into Deutsche Telekom’s United States wireless organization and ended its existence as an independent publicly traded operator.

• 2001

  Deutsche Telekom acquires Powertel

  [1]Powertelen.wikipedia.org

  Deutsche Telekom acquired Powertel and placed it under VoiceStream Wireless.

• 1999

  Analog operations are divested

  [1]Powertelen.wikipedia.org

  Powertel sold its analog cellular operations to Public Service Cellular for $89 million.

• 1997

  InterCel becomes Powertel

  [1]Powertelen.wikipedia.org

  InterCel changed its corporate name to Powertel, Inc. and adopted the PTEL NASDAQ ticker.

• 1995

  Wireless spectrum is won

  [1]Powertelen.wikipedia.org

  Powertel PCS Partners submitted winning bids for spectrum covering parts of nine Southeastern states.

• 1994

  Powertel PCS Partners is formed

  [1]Powertelen.wikipedia.org

  InterCel and other investors formed a partnership to develop a GSM mobile network in nine Southeastern states.

• 1993

  Unicell is acquired

  [1]Powertelen.wikipedia.org

  InterCel acquired Unicell, a Maine cellular communications provider.

• 1991

  InterCel becomes the asset-owning company

  [1]Powertelen.wikipedia.org

  InterCel, Inc. was incorporated in Delaware and became the owner of the assets of Interstate Cellular and WHI Partnership.

• 1991

  InterCel lists on NASDAQ

  [1]Powertelen.wikipedia.org

  InterCel became publicly traded on NASDAQ under the ticker ICEL.

• 1989

  Interstate Cellular is incorporated

  [1]Powertelen.wikipedia.org

  Interstate Cellular, Inc. was incorporated in Georgia as an ITC Holding Company subsidiary to acquire cellular licenses and develop wireless systems.

A regional wireless network operator focused on cellular and GSM PCS communications in the Southeastern United States.

• Mobile telecommunications

  Analog cellular services

  Powertel inherited and operated analog cellular systems as part of its regional wireless business. These services provided conventional mobile voice communications in the company’s markets before the analog assets were sold to Public Service Cellular in 1999. The divestiture removed the legacy analog operation from Powertel’s portfolio and supported a stronger focus on digital PCS services.

• Mobile telecommunications · 1995

  GSM digital PCS network

  Powertel developed a GSM-based digital personal communications network covering portions of nine Southeastern states. The network followed the company’s acquisition of wireless spectrum through Powertel PCS Partners and became the central strategic focus after the sale of Powertel’s analog cellular operations. It represented the company’s transition toward digital mobile communications.

• 2001

  Join Deutsche Telekom’s United States wireless operationsM&A

  Background

  Deutsche Telekom was expanding its United States wireless presence through VoiceStream Wireless and related regional operators.

  Action taken

  Deutsche Telekom acquired Powertel and made it a subsidiary of VoiceStream Wireless.

  Aftermath

  Powertel ceased to operate as an independent company and became part of Deutsche Telekom’s American wireless structure.

  Source

• 1999

  Sell the analog cellular businessStrategy

  Background

  Powertel operated both legacy analog cellular assets and a newer GSM PCS network.

  Action taken

  The company sold its analog cellular operations to Public Service Cellular, Inc. for $89 million.

  Aftermath

  Powertel concentrated its business on digital GSM PCS services before its acquisition by Deutsche Telekom.

  Sale price. $89 million (May 3, 1999)

  Source

• 1997

  Adopt the Powertel corporate identityStrategy

  Background

  The company’s GSM PCS subsidiary and network strategy had become central to its identity.

  Action taken

  InterCel changed its corporate name to Powertel, Inc. and changed its NASDAQ ticker from ICEL to PTEL.

  Aftermath

  The business continued operating as Powertel while developing its digital GSM footprint.

  Source

• 1994

  Enter GSM PCS communicationsStrategy

  Background

  InterCel sought to develop a digital wireless network in the Southeastern United States and formed Powertel PCS Partners with other investors.

  Action taken

  The partnership planned, financed, and pursued spectrum for a GSM network covering parts of nine Southeastern states.

  Aftermath

  InterCel acquired the partnership interests and proceeded with construction of a wholly owned digital GSM network.

  Source

• 2001

  Deutsche Telekom acquires Powertel[1]Powertelen.wikipedia.org

  M&A

  Deutsche Telekom acquired Powertel and placed it under VoiceStream Wireless, which Deutsche Telekom also acquired on the same day.

• 1999

  Powertel sells analog cellular operations[1]Powertelen.wikipedia.org

  M&A

  Powertel sold its analog cellular operations to Public Service Cellular, Inc. for $89 million, concentrating the business more heavily on its digital GSM PCS network.

• 1997

  InterCel adopts the Powertel corporate name[1]Powertelen.wikipedia.org

  Leadership change

  InterCel changed its corporate name to Powertel, Inc. and changed its NASDAQ ticker from ICEL to PTEL.

• 1995

  Powertel wins Southeastern wireless spectrum bids[1]Powertelen.wikipedia.org

  Other

  Powertel PCS Partners submitted winning bids for wireless spectrum covering parts of nine Southeastern states, supporting the planned GSM network.

• 1994

  InterCel forms Powertel PCS Partners[1]Powertelen.wikipedia.org

  Other

  InterCel and its investment partners created Powertel PCS Partners L.P. to develop and operate a GSM wireless network in nine Southeastern states.

• 1991

  InterCel becomes a publicly traded company[1]Powertelen.wikipedia.org

  Other

  InterCel, the corporate predecessor of Powertel, began trading publicly on NASDAQ under the ticker ICEL.

1. 1Powertelen.wikipedia.org