AT&T Wireless and Cingular Wireless Announce Major Expansion of GSM/GPRS Network Coverage Via New Joint Venture
REDMOND, Wash. & Atlanta--(BUSINESS WIRE)--Jan. 28, 2002--
Deal Accelerates GSM/GPRS Expansion of Both Carriers
GSM Coverage Along 3,000 Miles of Highways in West and Midwest
Cingular Wireless and AT&T Wireless (NYSE:AWE) announced the formation of a joint venture that will allow both carriers to more quickly and cost-effectively expand their buildout of GSM/GPRS network coverage along 3,000 miles of interstate highways in predominantly Mid-western and Western states. This JV will be the first to provide GSM/GPRS wireless technology to customers along major interstate routes in Arizona, Colorado, Kansas, Minnesota, New Mexico, Nebraska, Oklahoma, Texas and Utah.
The new network is expected to be operational in the first quarter 2003. Once the network is built and GSM/GPRS coverage is established along these major interstate highways, customers of both companies will have continuous access to advanced wireless data services and seamless functionality when traveling from coast to coast.
By sharing the capital cost of the network build-out, Cingular, a joint venture of SBC Communications Inc. (NYSE:SBC) and BellSouth (NYSE:BLS), and AT&T Wireless will bring the benefits of advanced network services (GSM/GPRS) to millions of their customers many months sooner than either company could have on its own. In addition to the accelerated network buildout, both companies will realize substantial savings in capital and operating expenses.
The joint venture will be managed equally by AT&T Wireless and Cingular. In addition to cash capital contributions, each company will also contribute spectrum that will be held and managed by the JV. The JV will also offer roaming to third parties at market-based rates.
"Once again, Cingular has found a creative and efficient business solution to bring to our customers wider coverage and advanced technology less expensively. As we roll out third-generation wireless voice and data services, this deal will expedite our bringing uninterrupted GSM coverage to customers across the country," said Stephen Carter, Chief Executive Officer of Cingular Wireless. "We have demonstrated our ability to create and operate unique infrastructure sharing agreements. We have shown that we can provide expanded, wireless voice and data services while holding the line on costs and maximizing spectrum efficiency. And we intend to do the same with this agreement."
"This is all about efficient deployment of our capital resources to the benefit of our customers," said AT&T Wireless Chairman and CEO John D. Zeglis. "Through this unique joint venture, AT&T Wireless will provide its customers with the benefits of seamless GSM coverage in more markets, in less time, and at a lower expense. This is just the latest example of how we're moving on all fronts, as fast as we can, to bring customers the next generation of wireless services."
Adopted by over 170 countries, GSM, or Global Systems for Mobile Communications, is the most broadly developed digital wireless standard in the world and allows carriers to provide an array of innovative wireless data services in addition to traditional voice service. AT&T Wireless and Cingular said the joint venture network will easily support an upgrade to EDGE and UMTS technology as needed. The partnership allows for expansion of the JV to cover additional highways, pending partner and FCC concurrence.
Financial terms of the deal were not disclosed. The JV is expected to be formed before year's end, following customary closing conditions and regulatory approval. Upon formation, the JV will contract with Cingular and AT&T Wireless to construct and maintain the new network infrastructure in the designated areas. Although both companies will buy network services from the infrastructure joint venture in these markets, each company will independently market its services to customers using its own brand name, and utilize its own sales, marketing, billing, and customer care operations.
About AT&T Wireless
AT&T Wireless (NYSE:AWE) is the largest independently traded wireless carrier in the United States, following our split from AT&T on July 9, 2001. AT&T Wireless operates one of the largest digital wireless networks in North America. AT&T Wireless now covers 45 percent of its markets with its GSM/GPRS network and will have 100 percent of its markets covered by the end of this year. With more than 17.1 million subscribers, and full-year 2000 revenues exceeding $10.4 billion, AT&T Wireless is committed to being among the first to deliver the next generation of wireless products and services. Today, AT&T Wireless offers customers high-quality wireless voice and data communications services in the U.S. and internationally. AT&T Wireless Customer Advantage is the company's commitment to ensure that customers have the right equipment, the right calling plan, and the right customer services options -- today and tomorrow. For more information, please visit us at www.attwireless.com.
About Cingular Wireless
Cingular Wireless is the second largest wireless carrier in the U.S., and is dedicated to self-expression and customer-friendly service. As a leader in mobile voice and data communications for both individuals and enterprises, Cingular, a joint venture between SBC Communications and BellSouth, currently serves more than 21.6 million consumer and business customers nationwide. Cingular offers customers advanced technologies in simple, cost-effective ways that permit them to tap the creative potential of wireless through their own self-expression. Details of the company are available at www.cingular.com.
CONTACT:
AT&T Wireless
David Caouette, 425/580-8278 (office)
david.caouette@attws.com
or
Cingular Wireless
Clay Owen, 404/236-6153 (office)
clay.owen@cingular.com
KEYWORD: WASHINGTON GEORGIA
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