OKLAHOMA CITY, July 12, 2002 (PRIMEZONE) -- Dobson Communications Corporation (Nasdaq:DCEL) and American Cellular Corporation today reported proportionate net subscriber additions of approximately 30,200 for the second quarter ended June 30, 2002, compared with approximately 38,400 proportionate net subscribers for the same period last year. Dobson Communications alone accounted for approximately 22,300 net subscriber additions in the most recent quarter, and its 50-percent owned joint venture, American Cellular, reported approximately 15,700 net subscriber additions. Proportionate results reflect Dobson's operations plus its 50% ownership in American Cellular Corporation through its joint venture with AT&T Wireless Services, Inc. (NYSE:AWE).
Postpaid customer churn was 1.7 percent for the second quarter of 2002 at both Dobson and American Cellular. In the second quarter last year, Dobson's churn was 2.0 percent, while American Cellular's was 1.6 percent.
Proportionate gross subscriber additions (postpaid) were approximately 85,800 for the second quarter this year, an increase of 14 percent over gross subscriber additions of approximately 75,200 for the same period last year. The most recent quarter's results included approximately 61,400 gross subscriber additions at Dobson and a total of approximately 48,700 gross subscriber additions at American Cellular.
Dobson's postpaid subscriber base (proportionate) increased by approximately 34,100 subscribers during the second quarter, while its prepaid subscriber base declined by approximately 3,800 subscribers, reflecting the Company's consolidation of its prepaid providers in preparation to re-launch that product line.
During the second quarter of 2002, the Company continued to transition its customer base to digital calling plans. As of the end of the quarter, approximately 82 percent of the subscribers in Dobson's proportionate subscriber base were on digital calling plans, compared with 62 percent a year ago. On a standalone basis, Dobson's customer base was 83 percent digital at June 30, 2002, compared with 80 percent at American Cellular.
Both postpaid and prepaid subscribers are included in its net subscriber additions. Gross subscriber additions and churn are reported on a postpaid basis only. The totals above give effect to and thus exclude the results of the five properties that were sold to Verizon Wireless (NYSE:VZ) by Dobson Communications and American Cellular during the first quarter ended March 31, 2002.
Dobson and American Cellular also announced that, based upon the preliminary results for the fiscal quarter ended June 30, 2002, American Cellular believes it will not be in compliance with the total debt leverage ratio covenant contained in American Cellular's bank credit facility. If American Cellular fails to be in compliance, the banks have the right, but not the obligation, to accelerate repayment of the entire outstanding balance of American Cellular's credit facility, which at June 30, 2002, was approximately $916 million. To date, no such acceleration has occurred.
Management of American Cellular continues to engage in discussions with its bank lenders concerning the bank credit facility.
Dobson noted that American Cellular's debt is non-recourse to Dobson Communications and AT&T Wireless.
Dobson Communications is a leading provider of wireless phone services to rural markets in the United States. Headquartered in Oklahoma City, the rapidly growing Company owns or manages wireless operations in 17 states. For additional information on the Company and its operations, please visit its Website at www.dobson.net.