Cingular to Buy AT&T Wireless for $41B

[Mike Temporale]

<div class='os_post_top_link'><a href='http://story.news.yahoo.com/news?tmpl=story&u=/ap/20040217/ap_on_bi_ge/at_t_wireless_auction&cid=509&ncid=716' target='_blank'>http://story.news.yahoo.com/news?tmpl=story&u=/ap/20040217/ap_on_bi_ge/at_t_wireless_auction&cid=509&ncid=716</a><br /><br /></div>"Combined, Cingular and AT&T Wireless will have 46 million subscribers, enough to leapfrog Verizon Wireless' market leading customer base of 37.5 million. <br /><br />Cingular, a joint venture between SBC Communications Inc. and BellSouth Corp., said its winning bid was for $15 per share, an amount that would value AT&T Wireless at $40.7 billion. Cingular will also assume $6 billion of debt owed by AT&T Wireless. <br /><br />The agreement, subject to the approval of AT&T Wireless shareholders and regulatory authorities, may be the largest all-cash buyout in U.S. history, said David Caouette, spokesman for AT&T Wireless."

[Kris Kumar]

Cingular is GSM, right?

So I wonder how the new network will be, will it have better nationwide coverage?

I would want to switch from T-Mobile to Cingular/AT&T. All the good Smartphones are for GSM. Plus Verizon doesnt seem to have any plans for SP 2004, nor does its partner Samsung.

Kris

[ClayMJohnson]

Cingular is GSM, right?


They are heading toward GSM, but still have a lot of TDMA networks out there. I think they have a few handsets that work on both networks.

Clay Johnson

[possmann]

out of curiosity why would you want to switch from T-Mobile when they have the largest GSM footprint period? Coverage?

[Kris Kumar]

out of curiosity why would you want to switch from T-Mobile

If the combined Cingular and AT&T network coverage/footprint were bigger than T-Mobile's, 'then' I would want to switch.

But I guess that wont be the case. As Clay pointed out, Cingular is not complete GSM :-(

Wish T-Mobile had bought AT&T !

[ShivShanks]

"Cingular, a joint venture between SBC Communications Inc. and BellSouth Corp., said its winning bid was for $15 per share, an amount that would value AT&T Wireless at $40.7 billion.

Everyone seems to be missing the significance of this for Microsoft. This could be bad news for the WM Smartphone platform. AT&T was friendly towards Microsoft technologies but the baby bells (SBC and BellSouth) are not very friendly towards Microsoft. In fact SBC being the Telco in Silicon Valley is decidedly unsympathetic towards Microsoft. They even featured against Microsoft in the Antitrust trials if I remember correctly. SBC partners with local Silicon Valley companies for many things like for example Yahoo for their DSL service. I doubt Cingular is going to push the WM platform much at all. Do people here know that for example Cingular is the only company without any Microsoft PPC phone edition PDA or WM Smartphone offering that I could gather. Every other carrier has atleast one or both. Heck even Sprint finally released a PPC Phone edition device. With Samsung/Verizon playing lackluster with their WM Smartphone offering and now this, what is going to happen to WM Smartphone? The future doesn't look too bright to me unless Microsoft steps up and manages to add on some more carriers. Come on Microsoft add someone like Sprint.

[aristoBrat]

There are only two providers with WM Smartphones in the US -- Verizon and AT&T. WM Smartphones haven't even been out for 6 months yet here.

I think it's a little premature to be worrying about Cingular + ATTWS combining being a bad thing for WM Smarpthones.

[Mike Temporale]

This could be bad news for the WM Smartphone platform. AT&T was friendly towards Microsoft technologies but the baby bells (SBC and BellSouth) are not very friendly towards Microsoft.

I think it will be at least a year before both companies are fully merged. On top of that, you have to consider that the MPx200 appears to be very popular. That combined with the Orange story about the ARPU from their signature line of phones being double that of normal handsets, should cause them to think twice before they cut Microsoft based devices off.

[possmann]

Don't forget that T-mobile is going to release (I think) a couple of smartphone devices around summer as well - for sure the mpx220 - I seem to recall them mentioning another smartphone OS device too...

[aristoBrat]

T-Mo's supposed to carry HP's PocketPC Phone .. the 6300 ..

[ShivShanks]

There are only two providers with WM Smartphones in the US -- Verizon and AT&T. WM Smartphones haven't even been out for 6 months yet here.

I think it's a little premature to be worrying about Cingular + ATTWS combining being a bad thing for WM Smarpthones.

Hah, Verizon and Samsung are doing zilch to promote Windows Mobile. It might as well not exist. Samsung has stated that they are gravitating towards Palm based smartphones and Verizon doesn't seem to be at all interested in adding a device other than the overpriced Samsung that took aaaaages to get approved in the first place. Besides I fully expect a fair number of people to leave AT&T with the merger to Cingular which is nothing but a but a baby bell in disguise (actually 2). Already AT&T faces class action lawsuits over its recent troubles. I don't think the combined company would be very appealing. See this article on MSNBC where consumer advocates fear it won't be the best thing -
http://www.msnbc.msn.com/id/4276272/

Unless Microsoft gets a better grip on the CDMA market also in the US, WM won't be a serious contender.

[ShivShanks]

I think it will be at least a year before both companies are fully merged. On top of that, you have to consider that the MPx200 appears to be very popular. That combined with the Orange story about the ARPU from their signature line of phones being double that of normal handsets, should cause them to think twice before they cut Microsoft based devices off.

Well one MPx200 from one provider (can we say half now) can't carry enough momentum. Microsoft needs more carriers now. The problem with reporting higher ARPU from a very small customer base is that they could all be just from business users with whom you would expect higher usage. They need to expand the market to normal users like the MPx200 did with its lower price.

[aristoBrat]

Hah, Verizon and Samsung are doing zilch to promote Windows Mobile. It might as well not exist. Samsung has stated that they are gravitating towards Palm based smartphones and Verizon doesn't seem to be at all interested in adding a device other than the overpriced Samsung that took aaaaages to get approved in the first place. Besides I fully expect a fair number of people to leave AT&T with the merger to Cingular which is nothing but a but a baby bell in disguise (actually 2). Already AT&T faces class action lawsuits over its recent troubles. I don't think the combined company would be very appealing. See this article on MSNBC where consumer advocates fear it won't be the best thing -
http://www.msnbc.msn.com/id/4276272/

Unless Microsoft gets a better grip on the CDMA market also in the US, WM won't be a serious contender.
What are you basing your "Hah, Verizon and Samsung are doing zilch to promote Windows Mobile." statement on? I've seen plenty of full page ads for the i600 in the trade magazines that float across my desk.

Considering that both the MPx200 and i600 have a major issue -- caller ID not working correctly if you have a reasonable amount of numbers in your phone -- I'm surprised that either AT&T or Verizon is promoting these phones at all.

IMO, the majority of wireless subscribers care about two things: $$$ and "does my phone work?". As long as AT&T+Cingular can give them that, I really doubt people are going to run away because it looks like a Baby Bell.

If customers did run from that, then Verizon should be bleeding customers left and right, ... but it's not.

Anyhow, I left a CDMA provider (Sprint) because they didn't offer a WM Smartphone, and I'm pretty sure I'm not the only one. When the providers start asking for the phones, the manufacturers will make them.

[ClayMJohnson]

Yea the merger could be a mess for the Microsoft Smartphone, but it could also be a huge opportunity for them. Even though it will be awhile before both companies get everything sorted out I think you have to plan for it now so when it happens you will be positioned. If you wait then it could be costly. Although Symbian has a lot of market share now you can not rule out Microsoft. Just remember Netscape and Lotus.

Clay Johnson

[ShivShanks]

What are you basing your "Hah, Verizon and Samsung are doing zilch to promote Windows Mobile." statement on? I've seen plenty of full page ads for the i600 in the trade magazines that float across my desk.

Advertising isn't the only way to promote a device. You know they can advertise till the cows come home from the moon but its not going to fly much if the price is exorbitant or the only device available is expensive. Also Samsung has given no indications that its coming up with another WM device to give hopes that there might be a cheaper/better device coming.


IMO, the majority of wireless subscribers care about two things: $$$ and "does my phone work?". As long as AT&T+Cingular can give them that, I really doubt people are going to run away because it looks like a Baby Bell.

If customers did run from that, then Verizon should be bleeding customers left and right, ... but it's not.


Perhaps you haven't heard all the problems that AT&T has had of late. Also the point about the phone working. AT&T+Cingular will be in the tough position of migrating users from TDMA to GSM all over their network without having a fully built up comprehensive GSM coverage area. Well atleast here in California Cingular doesn't have very good coverage and service. In fact Cingular is the worst. People don't leave Verizon since they are the best and the benchmark against which others are measured. Coverage and service wise they are the best so people are unlikely to leave them for anyone else (all of which are pretty much mediocre)


Anyhow, I left a CDMA provider (Sprint) because they didn't offer a WM Smartphone, and I'm pretty sure I'm not the only one. When the providers start asking for the phones, the manufacturers will make them.

Perhaps. But Microsoft should also make some efforts in getting more providers offer the phones.

[aristoBrat]

I don't think that VZW "gets it" when it comes to any of their Smart devices.

For example, on their phones page, apparently the only thing they could come up to describe the Blackberry is "TXT Messaging". Umm, HELLO?! It's a Blackberry ... might want to consider listening something like ALWAYS ON EMAIL? :: sigh ::

As for people leaving AT&T, I must have misread your comment. I thought you said people would leave because it looked like a Baby Bell.

And as for migrating TDMA users, who says that they have to do it now? ;)

[Kris Kumar]

Of the Cingular site..a press release..

http://www.cingular.com/about/latest_news/04_02_17

Makes an interesting read.

Key Points..

Customers of the new company will have access to the largest GSM network in the United States.

Because of improved spectrum holdings, the new company should be able to accelerate its offering of advanced wireless data services and pave the way for high-speed third generation services in the future. This is important because consumers and businesses are increasingly relying on wireless internet and e-mail access. Cingular and AT&T Wireless have been leaders in rolling out high-speed wireless data offerings, including GPRS (General Packet Radio Services), EDGE (Enhanced Data rates for GSM Evolution) and trialing next generation UMTS (Universal Mobile Telecommunications System).

Well looks like Cingular recognizes that internet and email access is the way to go. Rollover Minutes may get them the customers, but internet/email/chat is what it will take to keep the customers.

[aristoBrat]

Well looks like Cingular recognizes that internet and email access is the way to go. Rollover Minutes may get them the customers, but internet/email/chat is what it will take to keep the customers.
Cingular and AT&T's rates for internet/email/chat seem to not recognize that fact. ;)

[ShivShanks]

Well looks like Cingular recognizes that internet and email access is the way to go. Rollover Minutes may get them the customers, but internet/email/chat is what it will take to keep the customers.
Cingular and AT&T's rates for internet/email/chat seem to not recognize that fact. ;)

Also the fact that Cingular doesn't have a single Palm/PocketPC/WM device in their lineup before taking on AT&T. I think there is going to be somewhat of a culture shock when they merge. Funny that Cingular originally had no plans to implement EDGE fully and now its touting that as well as UMTS. Cingular has been normally known as the laggard as far as data services were concered.

[ClayMJohnson]

Good article in today’s Dallas Morning News that says this deal will hurt a few of the wireless vendors ... mainly Ericsson. They also mentioned this could be a really sweet deal for Nokia.

http://www.dallasnews.com/sharedcontent/dws/bus/stories/021804dnbuswireless.23fe1.html


Clay Johnson-

[ShivShanks]

Good article in today’s Dallas Morning News that says this deal will hurt a few of the wireless vendors ... mainly Ericsson. They also mentioned this could be a really sweet deal for Nokia.

http://www.dallasnews.com/sharedcontent/dws/bus/stories/021804dnbuswireless.23fe1.html


I had to register to read that article. Man what intrusive demographics collecters they are. I hate anount of data these internet newspapers collect these days. Might as well ask me what my underwear size is next time :roll: I've made a point to instead to make my displeasure known in the data I fill.

But at least the story was interesting. Does kind of support what I have been saying here that its not such a great deal as what some people think it to be.