Cingular Wireless completed its $41 billion acquisition of AT&T Wireless. Shareholders of AT&T Wireless will be paid $15 cash per share by SBC Communications and BellSouth. The newly combined company is the nation’s biggest wireless carrier with more than 46 million customers.
Cingular will now start opening access to both the Cingular and AT&T Wireless GSM networks to further improve coverage, allowing customers of both companies to use the new, combined network without roaming charges. Customers also will have the ability to make unlimited mobile-to-mobile calls to any Cingular or AT&T Wireless customer.
SBC Communications said the pending acquisition of AT&T Wireless by Cingular Wireless positions SBC for stronger growth in one of the hottest sectors of telecom today. Specifically, SBC expects:
- the combination of the two wireless companies will increase proportionate revenues from Cingular Wireless from less than 20 percent of SBC’s total revenues to more than 30 percent.
- the overall number of U.S. wireless subscribers to increase from 155 million at the end of last year to 200 million by the end of 2008.
- to introduce new SBC products and services that utilize the improved Cingular wireless position to be more competitive across all of the companies’ business lines. Details of the new wireless/wireline products have not yet been announced.
- AT&T Wireless’ existing strength among large businesses to boost SBC’s relationship with these customers.
- the merger of the two wireless companies’ networks and spectrum will boost consumer service coverage, call quality and other improvements.
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- SBC holds a 60% stake in Cingular, while BellSouth holds 40%.