PacTel Cellular Increases Share of Georgia Market

PacTel Cellular said Thursday that it has purchased an additional 35% ownership interest in the Athens, Ga., cellular telephone market for $2.8 million.

PacTel acquired the interest from General Cellular Corp., which was the largest remaining minority shareholder in the Athens market. PacTel now owns 85.1% of the cellular operation in the Athens area, which has a population of 144,000.

Of nine other remaining investors, McCaw Cellular Communications in Kirkland, Wash., has the largest share with 7% ownership.

Don Harris, vice president for corporate development for Irvine-based PacTel Cellular, said the purchase helps bolster the company’s position in the Georgia marketplace.

“The Athens and Atlanta areas are a good market for cellular,” Harris said. “The purchase gave us the opportunity to consolidate our interest at an attractive price.”

In addition to owning a cellular system in neighboring Atlanta, PacTel Cellular also operates systems in Los Angeles, San Diego, San Francisco, San Jose, Sacramento and Detroit, serving about 450,000 customers.

PacTel Cellular reported net income of $55 million on revenue of $453 million in 1989, compared with net income of $15 million on revenue of $308 million. Bell South Mobility, a subsidiary of Bell South, competes with PacTel Cellular in the Athens market, but the companies do not disclose market share figures.

The company is a wholly owned subsidiary of Pacific Telesis Group in San Francisco.