$2.5 billion deal contingent on closing of Cingular acquisition of AT&T
Wireless
ATLANTA, May 25 /PRNewswire/ -- Cingular Wireless today announced it would
end its network infrastructure joint venture with T-Mobile USA in New York,
California and Nevada, with Cingular selling the California and Nevada network
and certain California and Nevada spectrum to T-Mobile USA for approximately
$2.5 billion.
Cingular will also receive 10MHz of spectrum from T-Mobile in the New York
BTA as part of the dissolution terms originally agreed in 2001. T-Mobile USA,
in addition to acquiring the network infrastructure in California and Nevada,
will obtain 10MHz of additional spectrum from Cingular in San Francisco,
Sacramento and Las Vegas, as well an option to buy an additional 10 MHz in the
Los Angeles and San Diego BTAs.
The transaction is contingent on federal approvals of Cingular's
acquisition of AT&T Wireless. The transaction is also subject to approvals
from the FCC and Department of Justice. It is expected to close early in the
first quarter of 2005.
Both Cingular and T-Mobile customers are unaffected by the deal, with both
companies retaining their own customers. Cingular's customers will also
continue to use the California, Nevada and New York networks for up to four
years. As a result, the transition should be transparent to Cingular's
customers.
Cingular will buy minutes wholesale from T-Mobile on favorable terms.
"Over the last two years, our joint venture with T-Mobile has been good
for Cingular, its customers and wireless consumers in general," said Stan
Sigman, President and CEO of Cingular Wireless. "Today's announcement means
Cingular's customers will continue to have top-notch wireless service and be
able to look forward to advanced data applications in the future."
The infrastructure joint venture, which was announced in October 2001,
provided a cost-effective means for Cingular to enter the New York City market
and T-Mobile to enter the California and Nevada markets. The joint venture
acted as a "factory," producing and making wireless minutes available to both
carriers, while providing consumers a wider choice in wireless service.
About Cingular Wireless
Cingular Wireless, a joint venture between SBC Communications (NYSE: SBC)
and BellSouth (NYSE: BLS), serves more than 25 million voice and data
customers across the United States. A leader in mobile voice and data
communications, Cingular is the only U.S. wireless carrier to offer
Rollover(SM), the wireless plan that lets customers keep their unused monthly
minutes. Cingular has launched the world's first commercial deployment of
wireless services using Enhanced Data rates for GSM Evolution (EDGE)
technology. Cingular provides cellular/PCS service in 43 of the top 50 markets
nationwide, and provides corporate e-mail and other advanced data services
through its GPRS, EDGE and Mobitex packet data networks. Details of the
company are available at http://www.cingular.com .
SOURCE Cingular Wireless
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Related links:
http://www.cingular.com
CONTACT:
Clay Owen, +1-404-236-6153, or
clay.owen@cingular.com, or Tony Carter, +1-404-236-6419 or
tony.carter@cingular.com, both of Cingular Wireless
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