Regulators Let Cingular Buy AT&T Wireless

Discussion in 'Serious' started by Malvolio, 23 Oct 2004.

  1. Malvolio

    Malvolio .

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    Welp, it has finaly happened, after much anticipation. I wonder what will happen to my call center :worried:

    Merger Will Create Biggest U.S. Cell Firm

    By Yuki Noguchi
    Washington Post Staff Writer
    Saturday, October 23, 2004; Page E01

    The $41 billion merger between Cingular Wireless LLC and AT&T Wireless Services Inc. won approval from the Federal Communications Commission yesterday, according to federal sources close to the agency, paving the way for major changes in the lucrative wireless-phone market.

    The FCC and Justice Department plan to announce on Monday that both agencies have signed off on the deal, although the regulators will require Cingular to make some concessions in return, according to the sources, who declined to be identified because the decision has not yet been made public.

    Cingular's purchase of AT&T Wireless will give the company about 47.6 million customers -- roughly 27 percent of the nation's wireless market and enough for it to surpass Verizon Wireless as the nation's largest cellular provider. It will serve all of the top 100 markets in the United States.

    To satisfy the antitrust concerns of regulators, Cingular will have to sell AT&T Wireless's business, including stores and customers, in 16 mostly rural and suburban markets, according to the sources. The company also will be ineligible to buy additional airwave licenses in areas where the combined company controls 70 megahertz or more of spectrum; 189 megahertz is the total available for use by mobile-phone companies in a market. Additionally, the company will have to sell a portion of its airwave licenses in some other markets.

    Spokesmen for Atlanta-based Cingular, Redmond, Wash.-based AT&T Wireless, the FCC and the Justice Department declined to comment on the pending merger.

    Company officials and some analysts say the combined resources of size and marketing power could mean cheaper phone bills, new high-speed services and better network coverage for Cingular and AT&T Wireless customers. Cingular, along with its two parent companies -- SBC Communications Inc. and BellSouth Corp. -- also could step up their marketing of bundled packages of local, long-distance, and wireless service.

    But consumer groups and some smaller rivals said the dominance of Cingular and its parents could hurt customers. The Phoenix Center for Advanced Legal & Economic Public Policy Studies, a policy think tank, estimated the merger could narrow customer choice and result in an 8 percent increase in wireless prices.

    The deal is expected to close soon after regulatory approval is announced.

    The two Democratic FCC commissioners, Michael J. Copps and Jonathan S. Adelstein, joined the three Republicans in the decision but dissented in part, citing concerns that the merger would concentrate too much power in the telecommunications industry, sources close to the FCC and the industry said. SBC and BellSouth are leading local phone providers in Southern and Southeastern states, and Cingular is also a dominant wireless carrier in parts of those regions.

    The two commissioners argued for substantially greater divestitures in those areas and for stronger language ensuring that Cingular does not get preferential prices to connect to the land-line networks of its parent companies.

    In the end, they were able to secure the additional divestiture of six markets beyond those initially proposed, according to a source close to the commission.

    After an eight-month approval process, Cingular faces the two-year task of integrating the companies' networks, which are built from a hodgepodge of technologies. It must clean up AT&T Wireless's tarnished image, and it must market itself effectively to keep customers from defecting to other carriers looking to take advantage of any missteps.

    "Like every merger, you'll have skeletons in the closet; you just hope they don't come alive," said Roger Entner, an analyst with the Yankee Group, a market-research firm in Boston. "Cingular must clean them out quickly."

    The combined company will employ about 70,000 people. Although it may lay off thousands of workers, Cingular said it will not make cuts until next year. The AT&T Wireless brand name will be transferred back to its former parent, AT&T Corp., six months after the deal closes.





    Credit for the entire article must go to SBacklin off of www.PhoneScoop.com for posting this. Linky
     
  2. Dad

    Dad You talkin to me?

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    Wonder what that's going to do to my service and/or bill being an AT&T Wireless customer...
     
  3. Satyric_saint

    Satyric_saint What's a Dremel?

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    That’s easy you'll get screwed over by Cingular just like every one else who enters into a contract with them. I bought 2 phones from them with a "30 day money back guarantee with no obligations if I returned the phones" I used them on Friday and Saturday I got a phone call to confirm my services and it turns out the sales rep lied to me about having free mobile to mobile (I asked him twice about it) and I stopped using them immediately and took them back on Monday night. After a while of bitching they refunded my money and I thought everything was fine until I start getting bills for $50 which I was told to disregard because the charges are waved because of the 30 refund and the sales rep lying to us. 3 months later I was still getting the bills and also threats that I need to pay, so I take it to the manager it turns out that because the phones where used on peak hours to call each other and the mobile to mobile wasn't free it ran up a $50 charge and that isn't covered by the 30 agreement which led to me bitching more about the lying sales rep then I was told he was fired for doing the same thing to all his customers but that the manager couldn't do anything and I needed to talk to the District manager. It took a week to track him down and tell my story again and he said he understood and would take care of it. Needless to say I talked to the man 3 more within a 2 month time period time and I'm still getting crap from cingular 2 years later. :grr: :miffed: :nono:
    My advice GET A DIFFRENT WIRELESS CARRIER! Cingular is nothing but a pretty orange scam. The service even sucked you could barely carry on a conversation with the constant signal fall off and I live in the capital city of Florida where all major business for the state takes place. (You’d think I would have a decent signal) I now have T-mobile and am much happier with my service. :rock:
     
  4. Ubermich

    Ubermich He did it!

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    let me add on to Dad... I wonder what will happen to me, being an AT&T customer who signed a 1-Year contract 2 months ago...

    But I suspect we'll both be getting mail soon :sigh:
    Oh well, maybe I can go to Verizon soon. Voted #1 in D/FW! w00t! Not to mention their phones are way cooler (I know they're all the same, but Cingular doesn't have any of the cool phones in the store. Ratshack on the other hand...)
     
  5. Dad

    Dad You talkin to me?

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    I'm thinking the same thing - the only reason I signed on with AT&T is because my parents & brother have it so I could call them for free. From what I understand, since AT&T is being bought out by Cingular, AT&T customers will (or should) have a free "out" if they want to drop their service - don't quote me on that though..
     
  6. GMan

    GMan Minimodder

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    As another recent AT&T customer (with a 1 year contract), I also wonder what will happen. Hopefully, they won't change too much - in my area AT&T have the best coverage. Cingular does have those rollover plans though....
     
  7. Malvolio

    Malvolio .

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    Oi! Can't you customers sort things out for yourselves! Damn it, I just got off work, and I'm still answering bloody Cingular questions! Whelp, as I work for ATTWS currently, I suppose I should be the one to answer your questions.

    Firstly, existing customers will NOT be able to opt out of their current contract, they WILL be held up untill their set date. The only way you can opt out of your contract is if you migrate to Cingular, or pay the ETF.

    Second, no customers will be forced to be droped from either service, nobody will be getting mail stating "We're sorry, but because we're nim-rods and enjoy money, we're giving you the boot, don't use your phone ever again!!" :rolleyes:



    Under the terms of the settlement, the merged firm must divest AT&T Wireless’s mobile wireless services business, including spectrum and customer contracts, in parts of Connecticut (Litchfield), Kentucky (Fulton), Oklahoma (Oklahoma City and Ponca City), and Texas (Lufkin/Nacogdoches). In Connecticut, Kentucky, and Texas the merged firm may retain some of AT&T Wireless’s wireless spectrum. The merged firm must also divest minority equity interests in mobile wireless services providers in FCC licensing areas in Georgia (Athens), Kansas (Topeka), Louisiana (Shreveport, Monroe), Massachusetts (Pittsfield), and Missouri (St. Joseph), although it may retain its minority interests in Kansas, Louisiana, and Missouri if those interests are made irrevocably and entirely passive to the satisfaction of the Department.

    To resolve the Department’s competitive concerns related to mobile wireless broadband services, the merged firm must divest 10 MHz of contiguous PCS wireless spectrum in parts of Michigan (Detroit), Tennessee (Knoxville), and Texas (Dallas-Fort Worth). In Knoxville, the merged firm can alternatively restructure AT&T Wireless’s existing relationship with another spectrum licensee in the market to the satisfaction of the Department so that the merged firm has no equity, managerial, or other interest in the licensee and the Department’s competitive concerns are resolved.


    Those are the markets effected by the merger, and even those won't feel much of an impact, as Cingular already has coverage in those areas (if I remember correctly).

    [rant] As for you bloody Cingular customers, stop phoning up ATTWS! WE CAN'T HELP YOU. [/rant]


    Anyway, further questions I shall answer in a timely manor, I will be receiving training at a latter date this week to fully realise the merger dynamics, I'll keep you posted. And no, I don't have any quams about releasing internal info.



    [EDIT]And yes, I do realise that that I said and what the quote provided do conflict, "Under the terms of the settlement, the merged firm must divest [some] AT&T Wireless’s... customer contracts" and I stated that ATTWS contracts would not be touched. I ment to say that no ATTWS customer will be denied service, they will just automatically have their contracts revoked so they can opt out if the remaining network in their local area does not meet their needs after the companies divest some sites. At most, very small, moderate areas will be effected. Or at very least, this is what we're being fed by the corporation...[/EDIT]
     
    Last edited: 27 Oct 2004
  8. Dad

    Dad You talkin to me?

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    As long as my contract does not change for the worse, then I'll be happy. Cingular was one company who I investigated before going with AT&T and I didn't care for what they had to offer..
     
  9. Malvolio

    Malvolio .

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    More news from the front lines, not much, but it is something! First, the name change will begin to take effect beginning of november, expect everything to mostly be Cingular by around march 2005. If you are wondering, the AT&T name is leased from AT&T, NOT simply that AWS is allowed to use it, they actualy pay for the privledge of it's use (it wasn't brought up here, but it has been elsewhere). Expect to be able to migrate to Cingular mid-november, thats around when you will no longer be able to obtain AWS GSM plans. And yes, you will need to get a new phone. The excuse given is that "Cingular has certian features and benifits if you use one of their phones, as AWS phones do not have these special features" (almost word for word from corporate e-mail for things to say to customers).

    Anyway, that's all for now! I will continue to keep you updated as to events currently occuring.
     
  10. Dad

    Dad You talkin to me?

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    Don't even tell me that.. I just bought a Motorola V600 2 or 3 months ago..
     
  11. Satyric_saint

    Satyric_saint What's a Dremel?

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    as I said and was obviously ignored you are going to get screwed.
     
  12. Dad

    Dad You talkin to me?

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    I see that according to their webite, the V600 is a phone Cingular offers so hopefully I'm not out all that money..
     
  13. Satyric_saint

    Satyric_saint What's a Dremel?

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    I hope it works out for you but as I always say, Hope for the best but prepare for the worst. Good luck to all at&t customers.
     
  14. GMan

    GMan Minimodder

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    I'm glad I went with the free Samsung x426. Although I'm not sure how I'll be affected by this - Cingular doesn't currently have service in my area and my current service is GSM.
     
  15. Malvolio

    Malvolio .

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    /me bangs head against wall :wallbash:


    Alright, let me quell your fears, and begin some new ones. First: if you have ANY AWS PHONE, and you want a Cingular plan, you WILL need to get a new phone - NO EXCEPTIONS. Second: if you currently have service with AWS, you WILL NOT have your service cut off. So, Dad, you CAN still use your phone, you just CAN'T get a Cingular rate plan. It's that simple.

    Second: if AWS exists in your area, and Cingular does not, then you will still have service. If Cingular exists in your area, and AWS does not, then you will still have service.



    Anyway, projected "Day 1" is to be November 15, 2004. That's when it's expected you will be able to migrate to Cingular and not have to pay an ETF. As for pricing of Cingular phones, not only will they be coming out with 36 model's in total, but when an existing AWS customer wishes to migrate, it will be as if their AWS account is closed, and a new Cingular account is opened (much like when you switch from TDMA (digital) to GSM). The kicker is that you will - most likely (according to some very good sources) - receive new customer pricing on all available phones. As well, if you have an existing Mobile to Mobile plan on either carrier, you will be able to utilize it properly on both carriers’ customers on "Day 1". The multi-network roaming will take effect at that time as well (HCA's expanding due to the increased network size, and larger coverage map).



    As well, some additional info: Why you need a new phone on a Cingular rate plan: to put it as simply as possible, Cingular and AWS utilize different protocols within their networks, therefore they need to have phones customized for them. Cingular has been working on a new SIM (Subscriber Identification Module) card for their GSM phones. Whereas a normal SIM is 32bit, the latest innovation would be 64bit - doubling the effective network capability of the device. Simply put: your phone automatically switches between the two networks effortlessly, and can use either networks protocols without any problems, and also provides marginally improved service. 64bit phones and SIM cards will be available on the projected "Day 1" as well, though that is subject to change, and they may be offered sooner (though it is doubtful, some people are saying that they'll only start offering them once current stocks have depleted)


    Q: "My phone is unlocked, will I be able to use it on Cingular as I'm a current AWS customer?"

    A: Yes, you just will not be able to access certain systems and features that only a Cingular locked phone will be able to enjoy.




    More inside info to come! Stay tuned!
     
  16. Dad

    Dad You talkin to me?

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    Cool, that's fine.. I'm happy as long as my rate doesn't increase and I can use my current phone..
     

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