Cingular, VoiceStream to Share Wireless Networks in New York, California and Nevada
New Infrastructure Joint Venture accelerates time to market for both carriers; Reduces capital expenditures
ATLANTA, GA and BELLEVUE, WA, October 15, 2001 - Cingular Wireless and VoiceStream Wireless have entered into an infrastructure joint venture that will allow Cingular to offer service in New York City, and VoiceStream to provide service in California and Nevada quickly and cost-effectively. The companies estimate that by sharing their existing infrastructure in those areas they will each save hundreds of millions of dollars in capital expenditures and operating expenses going forward. Consumers will still be able to choose between Cingular and VoiceStream wireless services. The existing networks in those markets will cover over 55 million people, including three of the top ten markets in the country.
Cingular, a joint venture of SBC Communications Inc. (NYSE:SBC) and BellSouth (NYSE: BLS), and VoiceStream Wireless, a member of T-Mobile International Group, Deutsche Telekom's mobile communications subsidiary (NYSE:DT), have created a 50/50 managed venture that will allow the companies to share their GSM network infrastructure in New York, California and Nevada.
Consumers in these markets will now have a choice between GSM service providers. Adopted by over 170 countries, GSM is the most commonly used wireless technology worldwide and gives customers the choice of using their number and services when traveling internationally to and from the United States.
"Cingular will now be ready to move into the New York City market in mid-2002," said Stephen Carter, President and CEO of Cingular Wireless. "This creative agreement with VoiceStream again demonstrates how innovative companies can provide expanded service for their customers while holding the line on costs and maximizing spectrum efficiency."
John Stanton, CEO of VoiceStream Wireless, said American consumers would benefit as VoiceStream becomes an even more competitive national operator. "VoiceStream is the leading nationwide provider of GSM service in the United States. We're excited to bring our service to California and Nevada and offer customers in these areas our "Get More" value proposition that the rest of the nation has found so compelling," said Stanton. VoiceStream will begin providing service in California and Nevada when sales, distribution and customer support systems are in place.
Although both companies will buy network services from the infrastructure joint venture in these markets, each company will retain its own licenses to provide wireless voice and data services. Each company will independently market its services to customers using its own brand name, and utilize its own sales, marketing, billing, and customer care operations.
Financial terms of the deal were not disclosed. The agreement is not subject to Federal Communications Commission (FCC) approval and has received approvals by Deutsche Telekom, SBC and BellSouth. It is expected to be completed by the first quarter of 2002, following customary closing conditions.
ABOUT CINGULAR WIRELESS
Cingular Wireless is the second largest wireless carrier in the U.S., and is dedicated to self-expression and customer-friendly service. As a leader in mobile voice and data communications, Cingular, a joint venture between SBC Communications and BellSouth, currently serves more than 20 million customers nationwide. Cingular offers customers advanced technologies in simple, cost-effective ways that permit them to tap the creative potential of wireless through their own self-expression. Details of the company are available at www.cingular.com.
ABOUT VOICESTREAM WIRELESS
Based in Bellevue, Wash., VoiceStream and its affiliates own licenses to provide service to over 97 percent of the U.S. population. VoiceStream's committed to providing the best value in wireless service through it's 'GET MORE' promise to provide customers with more minutes, more features and more service than any other wireless provider in the markets they serve. VoiceStream uses and operates the globally dominant Global System for Mobile (GSM) communications technology platform. VoiceStream is a member of the T-Mobile International group, the mobile telecommunications subsidiary of Deutsche Telekom (NYSE:DT). Through its subsidiaries and other investments, Deutsche Telekom today serves more than 62 million mobile telephony subscribers worldwide. For more information, visit the company web site at voicestream.com