Brand transition plan in place for Cingular acquisition of AT&T Wireless
AT&T to sell network services to combined wireless carrier
REDMOND, Wash., BEDMINSTER, NJ, and ATLANTA -/August 24, 2004 - Wi-Fi Technology News/- AT&T (NYSE: T), AT&T Wireless (NYSE: AWE), and Cingular Wireless today announced they have resolved issues relating to the use of the AT&T brand in connection with Cingular's acquisition of AT&T Wireless. The agreement the parties have reached also includes a provision for the purchase of AT&T network services.
The three companies have modified the brand license agreement between AT&T and AT&T Wireless to clarify the use of the AT&T brand by AT&T Wireless and Cingular in connection with the merger in an effort to minimize customer confusion. In addition, AT&T and AT&T Wireless have also addressed and clarified certain brand-related issues. They expect the licensing agreement to remain in effect through the closing of AT&T Wireless' merger with Cingular and for six months beyond it.
During a six-month transition following the merger, Cingular will have certain licensee rights to the AT&T brand for wireless services.
Cingular intends to use its own brand for the new combined company following its acquisition of AT&T Wireless, and it will cease using the AT&T brand at the end of the transition period.
The deal also modifies the terms of separate, current agreements between AT&T and AT&T Wireless that involve the purchase of AT&T network services.
Under the terms of the new accord, a portion of the agreement under which AT&T provides services to AT&T Wireless has been modified and extended for up to 17 months. AT&T will provide the combined Cingular/AT&T Wireless with international long distance, private line services, and corporate telecommunications services. This represents a commitment of $100 million to AT&T, the companies noted.
About AT&T Wireless
AT&T Wireless (NYSE: AWE) is the second-largest wireless carrier, based on revenues, in the United States. With 21.737 million subscribers as of June 30, 2004, and revenues of more than $16.8 billion over the past four quarters, AT&T Wireless delivers advanced high-quality mobile wireless communications services, voice and data, to businesses and consumers, in the U.S. and internationally.
About AT&T
For more than 125 years, AT&T (NYSE "T") has been known for unparalleled quality and reliability in communications. Backed by the research and development capabilities of AT&T Labs, the company is a global leader in local, long distance, Internet and transaction-based voice and data services.
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 is the largest provider of GSM services in the United States, and has a 100 percent digital GSM/GPRS footprint across its service area. It also launched the world's first commercial deployment of wireless services using Enhanced Data rates for GSM Evolution (EDGE) technology.
Cingular also 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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