AT&T Wireless
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| AT&T Wireless Services, Inc. <tr><td colspan="2" style="text-align:center; padding:16px 0 16px 0;"></td></tr> | |
| Type | Defunct; part of Cingular Wireless |
|---|---|
| Founded | (initial) 1994; spun off from AT&T: 9 July 2001 |
| Headquarters | Redmond, Washington
<tr><th style="text-align:right; padding-right:0.75em;">Key people</th><td>John Zeglis</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Industry</th><td>Wireless Services</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Products</th><td>AMPS, D-AMPS, CDPD GSM, GPRS, EDGE, UMTS, SMS, MMS, mMode</td></tr><tr><th style="text-align:right; padding-right:0.75em;">Website</th><td>Cingular Wireless</td></tr> |
AT&T Wireless Services, Inc., formerly part of AT&T Corp., was a wireless telephone carrier in the United States, based in Redmond, Washington, and traded on the New York Stock Exchange under the stock symbol "AWE".
On October 26, 2004, AT&T Wireless completed a merger with Cingular Wireless to become the largest wireless carrier in the United States. Under the agreement, only the Cingular brand name would remain. On November 16, 2004, every single AT&T Wireless store was rechristened under the Cingular banner.
In late 2005, SBC (the majority partner in Cingular) acquired AT&T Corp., and renamed the combined company AT&T, Inc..
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[edit] History
In 1994, AT&T purchased the largest cellular carrier, McCaw Communications, for $11.5 billion and kick-started their cellular devision with 2 million subscribers.<ref name=pi>RICHMAN, DAN (2004-09-21). The fall of AT&T Wireless. Seattle Post-Intelligencer. Retrieved on 2006-10-13.</ref><ref>JUSTICE DEPARTMENT FILES ANTITRUST SUIT AND CONSENT DECREE IN AT&T-MCCAW MERGER. United States Department of Justice (1994-07-15). Retrieved on 2006-10-13.</ref> AT&T Wireless grew to be the nations largest cellular provider by the end of 1997 but by 1999 and 2000 the cellular industry began to consolidate and Verizon Wireless and Cingular Wireless became the first and second largest national carriers.
The year 1999 also brought John Zeglis as chief executive in October, followed a few months later by Dan Hesse's departure, who had been head of the division since 1997. Over the next year and a half all six McCaw regional presidents left the company.
In April 2000, AT&T Wireless became a separately traded entity with the largest world's largest initial public offering at that time. Followed, just over a year later in July 2001, by AT&T Wireless became a separate company rather than a division of AT&T Corp.
As of January 1, 2004, the largest single shareholder of AT&T Wireless was Japan's NTT DoCoMo.
AT&T Wireless was the third largest wireless telephone carrier in the United States before merging with Cingular in October 2004.
[edit] Acquisition history
On February 13, 2004, AT&T Wireless accepted bids for acquisition of the wireless company. The two top bidders were British carrier Vodafone and American competitor Cingular. Cingular was owned by two Baby Bells; 40% by BellSouth and 60% by SBC Communications, Inc. SBC would later acquire AT&T Corp. in 2006 and adopt the latter's name, becoming AT&T Inc. Vodafone owns 45% of Verizon Wireless and had it succeeded in the bid, their share of Verizon Wireless would then have been sold to parent company Verizon Communications. Cingular emerged victorious February 17 by agreeing to pay more than $41 billion, more than twice the company's recent trading value, to acquire AT&T Wireless. Some analysts have said that although Vodafone, the world's largest mobile operator, was unsuccessful in acquiring the company, it was nonetheless successful in forcing a competitor to overpay for the acquisition of AT&T Wireless.
The sale received US government approval and closed on October 26, creating the nation's largest wireless carrier, overtaking Verizon Wireless. The AT&T Wireless brand was retired by Cingular on April 26, 2005, six months after the close of the merger. This was per a pre spin-off agreement with AT&T Corp. that stated that if AT&T Wireless was to be bought by a competitor, the rights to the name AT&T Wireless and the use of the AT&T name in wireless phone service would revert back to AT&T Corp.
[edit] Partnerships
Rogers AT&T Wireless was a publicly traded partnership between Rogers and AT&T. Rogers bought out AT&T's stake in 2004 and took the company private.
Cincinnati Bell Wireless started as a joint venture between Cincinnati Bell and AT&T Wireless, in which AT&T Wireless owned 20%. When AT&T Wireless was purchased by Cingular, control of the 20% passed to Cingular as well. On February 17, 2006, Cincinnati Bell took full control of Cincinnati Bell Wireless by purchasing Cingular's 20% ownership for $80 million.
[edit] Revival of AT&T Wireless
On November 18, 2005, SBC Communications, Inc. completed a merger with AT&T Corp., and took the name AT&T Inc. AT&T later announced it planned on reselling Cingular services under the AT&T name, in "bundled" packages. This worried BellSouth, as AT&T planned on selling these bundled services in competition with BellSouth. However, in a somewhat ironic turn of events, AT&T Inc. announced on March 5, 2006 <ref>AT&T Press Release</ref> that it would be acquiring BellSouth's telephone and wireless operations. A revival of the AT&T Wireless brand is probable in the future as BellSouth's 40% ownership of Cingular Wireless will be transferred to AT&T (the primary impetus behind AT&T's acquisition of BellSouth was to acquire the remainder of Cingular, which was the two companies' largest single revenue source in 2005). Cingular is expected to be rebranded as "AT&T Cingular" early in 2007, for an interim period before while the Cingular brand switches to the AT&T brand, providing that the AT&T and Bellsouth merger successfully closes.<ref>Burg, Emily. "AT&T Brand Will Dominate After BellSouth Merger", MediaPost Publication, 2006-10-17. Retrieved on 2006-10-20.</ref> Even if the merger closes before the holiday season, initial rebranding will not take place until at least Q2 2007, to avoid customer confusion during the holiday season. A final rebranding to "AT&T" (without the "Wireless" modifier) could reasonably be expected in the future, but at present, AT&T has not given a definite timetable for that to happen.
[edit] References
<references/>
[edit] External links
- Official company web site
- AT&T Wireless Page @ PCS Intel - Contains large amounts of historical information and multimedia on the company
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1984: Ameritech • Bell Atlantic • Bell Communications Research • BellSouth • NYNEX • Pacific Telesis • Southwestern Bell • US West |
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2001: AT&T Broadband • AT&T Wireless |
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