Verizon Wireless, Vodafone's American joint venture, will pay $2.67 billion (£1.3 billion) to buy Rural Cellular Corporation and acquire wireless mobile coverage in far-flung US states from Maine to Minnesota.

The company, 45 per cent owned by Vodafone with the remaining stake controlled by Verizon Communications, will pay $757 million in cash for Rural Cellular and subsume $1.9 billion worth of debt carried by the local mobile network provider.

Verizon Wireless was recently the subject of a shareholder revolt by Vodafone investors, who attempted to get the UK mobile giant to divest its stake in the US joint venture and return the proceeds. The Rural acquisition has been sanctioned by Vodafone.

The Rural Cellular deal was announced as Verizon Communications released its second-quarter figures, revealing revenues up 6.3 per cent to $23.3 billion compared with the same period last year, while net income edged up from $1.61 billion to $1.68 billion.

Verizon Communications added 1.3 million new customers for its mobile services during the quarter, which will be boosted further with the addition of Rural Cellular's 716,000 subscribers. Average revenue per user increased by 3 per cent to $51.84.

Verizon also said it recorded 7.7 million broadband connections in the second quarter.

Explore Industry Sectors

• Banking & Finance

• Construction & Property

• Consumer Goods

• Engineering

• Health

• Industrials

• Leisure

• Media

• Natural Resources

• Retailing

• Support Services

• Technology

• Telecoms

• Transport

• Utilities

Times Recommends

• BA chief waives bonus after T5 fiasco
• Prospects of cheaper loans hit as Libor soars
• Rice price dives as US and Japan set to unlock grain pact