Cingular Wireless, Cincinnati Bell And AT&T Wireless Reach Agreement

[jones]

Cingular Wireless, Cincinnati Bell And AT&T Wireless Reach Agreement On Post-Merger Relationships
Thursday August 5, 9:04 am ET
Deal would end historical non-compete relationship between AT&T Wireless and Cincinnati Bell Wireless


ATLANTA, Aug. 5 /PRNewswire/ -- Cingular Wireless today announced that it has reached agreement with AT&T Wireless (NYSE: AWE - News) and Cincinnati Bell Inc. (NYSE: CBB - News) regarding changes to the existing wireless joint venture between CBB and AWE. These changes will be effective upon the closing of Cingular's pending acquisition of AWE and resolve certain issues affecting Cingular's and AWE's wireless operations in southwestern Ohio, northern Kentucky and southern Indiana in connection with the Cingular-AWE transaction.
Under the existing joint venture between CBB and AWE, AWE and its affiliates are subject to certain non-compete obligations in the Greater Cincinnati area. AWE owns 19.9% of the joint venture and CBB owns the balance. Because Cingular already operates in those markets, and wants to continue to offer its services there in competition with the Cincinnati Bell Wireless joint venture and others, the amendment of the non-compete agreement is an important step in closing the Cingular acquisition of AWE.

"This deal allows Cingular to continue to offer consumers throughout Cincinnati, Dayton and the immediate area, the unique benefits Cingular has to offer including the nation's largest GSM digital network, true nationwide roaming, and Rollover. In addition, it further reduces roaming costs for the combined Cingular and AT&T Wireless customers," said Ralph de la Vega, chief operating officer for Cingular Wireless.

Cincinnati Bell Wireless will also receive lower roaming rates from Cingular. The roaming deal will take effect upon closing of Cingular's acquisition of AT&T Wireless.

In addition, under the terms of today's agreement, Cingular will have the right to cause CBB to purchase the 19.9 percent equity interest after September 30, 2005, for $83 million. CBB also has the right to purchase the 19.9% interest in the joint venture.

[bobolito]

AWE has so many strings attached all over the place. No wonder they collapsed. They had NTT Docomo, Rogers, Suncom, Edge Wireless and Cincinnati Bell....Anyone else?

[wirelessoneder]

I think at one point every telephone/wireless companyhad their hands in other wireless companies just as an investment.

[+Eric]

This is pretty interesting, I wondered what was going to happen with that. CBW has a fairly good contracted user base here in Cincy, but their prepaid wireless is something else. You can get it all over the place including Krogers, so you just walk in, drop 100 bucks and you have a phone and some minutes. It's so huge with the teen age kids around here. When it started about, years ago, my brother and sister had it and SMS was free. Then they started to charge $0.25 day I think, now it's up to $0.50 a day but these kids still do it like crazy. I bet in cincy a significant amout of the population that uses prepaid uses I-wireless.... I'd be interested to see the numbers on that.

[Sprint PCS 411]

I think Cincinati Bell Wireless should buy out/merge with Suncom (Triton PCS), that would make for a really good regional wireless carrier. This would give them coverage in: Georgia, South Carolina, North Carolina, northeastern Tennessee, Puerto Rico (Suncoms Network) and in - southeastern Indiana, northern Kentucky and Cinncinati and sorrounding areas in Ohio (Cinncinati Bell's Wireless Network).

They could just build there network out from there.

[agentHibby]

The strange part is that is nothing compared to all the affliate owners for Verizon Wireless in there markets.

One big advantage Verizon has in alot of area with affliate owners is getting towers up where nobody can. I think that is of many reasons why in many metros Verizon has the better network. (but that is not always the case)