Cingular Wireless selling network to T-Mobile USA for $2.5 billion
$2.5 billion deal contingent on closing of Cingular acquisition of AT&T Wireless
ATLANTA - -/May 25, 2004 The Wi-Fi Technology Forum/- 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 RolloverSM, 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.
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