Airtouch To Buy Wireless Unit From US West Media Group

SAN FRANCISCO - AirTouch Communications said it will buy US West Media Group's wireless unit for $5 billion in stock and assumed debt, a step that completes a 1994 accord and gives AirTouch 1.9 million more cellular customers.

AirTouch will take over US West Media Group's NewVector wireless phone business and its interest in PrimeCo Personal Communications, a wireless joint venture owned by Bell Atlantic, Nynex, US West and AirTouch. PrimeCo provides wireless voice and data services. US West Media is a unit of US West, the Englewood, Colo.-based regional Bell telephone company.

US West NewVector began marketing its wireless services in the Seattle area under the AirTouch name last year. The NewVector offices, located in Bellevue, now operate as a division of AirTouch Cellular.

The deal announced today would strengthen AirTouch's position as one of the fastest-growing wireless phone companies in the world, with 10 million cellular customers. In the U.S., AirTouch will have wireless licenses with a total population of 260 million, making it the second-biggest U.S. wireless company after AT&T.

However, AirTouch and US West Media Group said they would pursue the deal only if Congress preserves federal rules that make it

tax-free.