AT&T to acquire Centennial Communications.

AT&T Inc. and Centennial Communications Corp. announced that AT&T plans to acquire Centennial, a regional provider of wireless and wired communications services, for $944 million in cash. The transaction will enhance AT&T’s wireless coverage for customers in largely rural areas of the Midwest and Southeast United States and in Puerto Rico and the U.S. Virgin Islands. With the addition of Centennial’s wired network in Puerto Rico, AT&T will also be able to better serve the company’s business customers who operate there.

As a result of the acquisition, Centennial’s 1.1 million wireless subscribers — many of them in rural areas — will have access to the wireless network with the best global coverage and to the nation’s premier lineup of innovative wireless devices, including iPhone 3G, an AT&T exclusive. Centennial’s customers who choose select smartphones — such as the blackberry Bold , another AT&T exclusive — and AT&T LaptopConnect cards will also enjoy free access to the nation’s largest Wi-Fi network.

“Mobility is a vital investment area for AT&T and our company’s biggest growth driver,” said Ralph de la Vega, president and chief executive officer of AT&T Mobility and Consumer Markets. “This transaction enhances network coverage for our consumer and business customers and is expected to create long-term value for AT&T’s stockholders.”

“This acquisition offers important benefits for wireless customers of both AT&T and Centennial,” de la Vega said. “Our existing customers will enjoy a better on-network calling experience in the current Centennial roaming areas. And Centennial customers will have access to a mobile-to-mobile network of nearly 75 million subscribers, AT&T’s national and international roaming capabilities, our terrific device offerings and our great portfolio of applications and services.”