Looks like one of OMPT's potential suitors is out...
Does not make sense for SBC to build-out national 1.8GHz GSM network (to complement SBC/PacBell Wireless properties) and also buy 800MHz CDMA Comcast property. SBC really has an alphabet soup (GSM, TDMA, and now CDMA) of properties and frequencies. I am interested in Comcast President quote about "strategic sense" of deal. Seems like SBC has an impressive map of wireless properties-but I do not know how they could actually pull-off any sort of national roaming. Too many different standards and technologies for this deal to make "strategic sense". Changing network standards and customers handsets will cost big $$. In my opinion, it would make more "strategic sense" for SBC to look at seriously being national GSM player. Buying-out OMPT's Phily competitor does not look good for those (such as myself) who thought SBC was in the running for OMPT.
Comcast to sell cell phone business to SBC
NEW YORK, Jan 20 (Reuters) - Cable television company Comcast Corp. (Nasdaq:CMCSA - news) said Wednesday it had agreed to sell its cellular telephone subsidiary to Baby Bell SBC Communications Inc. (NYSE:SBC - news) in a deal worth about $1.7 billion.
The transaction, which includes SBC's assumption of about $1.3 billion of Comcast debt, follows Vodafone Group Plc's (quote from Yahoo! UK & Ireland: VOD.L) agreement last week to acquire wireless phone giant AirTouch Communications Inc. (NYSE:ATI - news) in a stock swap valued at about $56 billion.
Philadelphia-based Comcast and San Antonio-based SBC said they expect to complete the deal in the third quarter, subject to customary conditions, including antitrust clearance and regulatory approval.
''This transaction makes strategic sense for both Comcast and SBC,'' said Comcast President Brian Roberts.
''We are proud of the market leadership position we established in cellular during our 10-year ownership period but, with this sale, we acknowledge the trend toward national and global competitors in the wireless industry,'' he said.
Comcast said that after the sale it would concentrate on its core cable and content businesses. |
