Below is Sprint's press release announcing its acquisition of additional PCS licenses:
Sprint Wins Wireless Licenses in 139 Markets in Latest Round of PCS
Auctions; Licenses To Be Part Of An Unprecedented Nationwide Wireless
Footprint
PR Newswire - January 14, 1997 15:28
KANSAS CITY, Mo., Jan. 14 /PRNewswire/ -- Sprint today won the rights to
PCS licenses in 139 markets in the FCC's latest auction of wireless licenses.
The licenses reach a total population of 70 million in cities across the
contiguous United States and Hawaii, Alaska, Puerto Rico and the Virgin
Islands. Sprint bid in this latest auction with the objective being to
affiliate the newly won licenses with Sprint PCS. With the new licenses,
Sprint PCS will become the only wireless operator with the ability to provide
nationwide, 100-percent digital PCS service, using a single technology to 100-
percent of the United States.
Sprint PCS recently ushered in a new era of wireless communication with
its launch of PCS service in the U.S. Sprint PCS, headquartered in Kansas
City, Mo., is a joint venture of Sprint Corporation, Tele-Communications, Inc.
(TCI), Cox Communications, Inc., and Comcast Corporation. The partnership
and its affiliates have licenses to provide PCS service to an aggregate
population of 190 million people. With the affiliation of Sprint's licenses,
Sprint PCS will achieve an unprecedented wireless reach of nearly 260 million
people.
"Providing one wireless service, using one technology, marketed under one
brand on a national scale is unprecedented," said Bill Esrey, Sprint chairman
and chief executive officer. "Sprint will have a consistent service offering
in every market, a distinct advantage over its competitors."
Andrew Sukawaty, Sprint PCS chief executive officer said, "When the FCC
auctions began, no one thought it possible for one company to gain licensed
coverage for the entire United States. Today, Sprint and Sprint PCS are the
first companies building a true, nationwide, single-technology PCS network.
"While other service providers use a patchwork of technologies, Sprint PCS
will offer customers seamless, nationwide wireless coverage using a single
technology. The notion of someone traveling from Los Angeles to New York with
service features that work the same in each market, using one wireless phone
that's clearer and offers more secure communications will be a reality on a
truly nationwide scale."
Sprint PCS has launched service in eight markets, including Spokane,
Wash.; Milwaukee, Wis.; Fresno and San Diego, Calif.; Portland, Ore.; Albany
and Syracuse, N.Y.; and Pittsburgh, Pa.
"Remaining markets, including New York, San Francisco, Dallas/Ft. Worth,
Boston, Miami, Minneapolis/St. Paul, Denver, Seattle and Kansas City, will
launch on a market-by-market basis in the first half of 1997," said Sukawaty.
"When this first phase of launch is completed this year, Sprint PCS service
will be available in 65 cities, including 35 of the top 50 U.S. markets.
The addition of the new Sprint-acquired licenses will allow us to offer the
many benefits of Sprint PCS to consumers and businesses in every metropolitan
area including Atlanta, Chicago, Cleveland, Houston and Tampa."
Sprint bid $545 million in the auction, paying an average of $7.78 per
person for each 10 Mhz license. The buildout of many of the markets will
begin immediately and will take 12 to 14 months to complete. Other markets
will be built out over a longer timeframe. Sprint is projecting buildout
costs over three years of $1.5 billion. Costs associated with the licenses
and buildout are expected to have a negative impact to Sprint's earnings over
the next few years with peak dilution occurring in 1998. "We believe the
long-term economic value created by Sprint PCS will far outweigh the start-up
costs Sprint will incur," Esrey said. "Additionally, we believe the
investment in a seamless, nationwide PCS network will pay off handsomely in
the future as PCS becomes the universal standard for wireless communications
in the United States."
The affiliation of licenses produces a unique win-win opportunity for both
Sprint and Sprint PCS. Sprint PCS will achieve nationwide scale while Sprint
gains a competitively advantaged wireless offering in markets where it plans
to provide packages of local, long distance, and wireless services to
consumers and businesses.
Sprint is a global communications company -- at the forefront in
integrating long distance, local and wireless communications services, and the
world's largest carrier of Internet traffic. Sprint built and operates the
United States' only nationwide all-digital, fiber-optic network and is the
leader in advanced data communications services. Sprint has $12.8 billion in
annual revenues and serves more than 15 million business and residential
customers.
SOURCE Sprint
CONTACT: Mark Bonavia of Sprint, 913-624-3552 |
