A billion here, a billion there...
<<<<AT&T Wireless adds $1 billion to 3G cost
CHICAGO, Dec 6 (Reuters) - AT&T Wireless Services Inc. (NYSE:AWE - news), the
nation's third-largest wireless telephone firm, on Thursday said it expects to spend another $1
billion on its network upgrade to third generation technology, which promises high-speed,
always-on Internet access.
The company, which is currently upgrading its networks with an
intermediary technology called GPRS (general packet radio service), has
already said that it expects to spend $2.5 billion on that technology upgrade.
John Zeglis, chairman and chief executive of AT&T Wireless, told investors
at the Lehman Brothers telecommunications conference in Florida that
AT&T Wireless expects to spend a few hundred million more dollars on its
next step to 3G called EDGE (enhanced data rates for GSM evolution) and
another $1 billion on its final upgrade to 3G.
Third generation services promise high-speed data connectivity and high
quality video and audio. The upgrade will also increase capacity so wireless
firms can add more users on their networks.
Zeglis said the total cost of the upgrade will break down to about the
mid-$20 range for each potential wireless user.
He also reiterated that AT&T expects to report revenues of about $12 billion for full year 2001, at the high end of its forecasted
30 percent to 35 percent growth.
Shares of AT&T Wireless rose 31 cents, or 2.15 percent, at $14.75 on the New York Stock Exchange in afternoon trade. |
