Cingular ATT Merger

[Philgsm]

I live in NH. There are ATT deadspots where my phone tells me there is strong Cingular coverage. And I am sure the Cingular people have the same issue. Finally they are one. This is good for all of GSM. Welcome the new biggest wireless provider.[img]i/expressions/face-icon-small-smile.gif[/img]

[mfsri]

Biggest in terms of cvoerage, VZW is still the largest.

[bobolito]

Biggest in terms of coverage and customers.

[Fathead]

while the new entity will be the largest, it's not official until they actually do the merge. And in theory (theory mind you) one of the other carriers could add enough subscribers before the official merge and be the biggest.


I think it's good news in the fact that now Verizon and Cingular will be able to stand toe to toe (although I'd like to see Verizon add one of the regional carriers to make themselves larger in the license department) and fight over rates and coverage. Plus we still have Sprint and T-Mobile to play the little alternatives.

[bobolito]

Unless somehow Verizon adds more than 10 million customers during this year and neither Cingular nor AT&T adds nothing, Cingular will become #1 at closing time for some time. I can see Verizon re-emerge as #1 in a couple of years.

[mfsri]

Cingular/ATT will not have more coverage then VZW. some att/cingular overlap so increasing coverage that much aint happening.

[Bitslap47]

Originally posted by: mfsri
Cingular/ATT will not have more coverage then VZW. some att/cingular overlap so increasing coverage that much aint happening.

not true. take some time to superimpose the ATT and Cingular coverage maps on top of each other and compare them to Verizon.

[Fathead]

Like I said, in theory someone could do it. I doubt Verizon could add 10-12 mill in a year and I highly doubt Sprint could double their numbers.... But it is "possible".



I think Cingular and Verizon are really going to stick it to each other on a national scale. It's going to be a major fight for supremacy, and I bet both sides are going to come up with some great ideas to end up being #1.

[bobolito]

For those of you who have any doubts here's the license comparison maps. Can Verizon top that?

[Fathead]

That map is wrong. Neither Cingular or AT&T own a license in SE Idaho.

[Philgsm]

Bobolito you forgot to add the rest of the world where we can use our GSM phones.

[mfsri]

I'm sorry, I sould of said GSM coverage. Both ATT/Cingulars GSM coverage is not where like VZW....

TDMA is a dying breed.....

[bobolito]

Originally posted by: Fathead
That map is wrong. Neither Cingular or AT&T own a license in SE Idaho.

The map says it includes AT&T Wireless affiliates. Since Edge Wireless (an AT&T Wireless affiliate) has licenses in SE Idaho, they colored it. Therefore, the map is not wrong.

[lets456]

Did they get the FCC approval? If so, how long before the contract is signed and they merge? I think this will be great for competition. Now Verizon will be "forced" to get better phones, get creative with their plans, etc. I think the consumer should make out better on this. Will Verizon be "forced" to adopt GSM now that ATT and Cingular could take-off with that market?

[Matt]

The merger was just announced today. No approvals have been given today. The companies expect approval by all of the authorities by late 2004.

[bobolito]

What happened today was just an announcement of an acquisition agreement. Nothing has or will change between the companies in the next few months. Assuming everything goes as planned, any visible changes will begin to happen by the 4th quarter of this year. The approvals will take a while to go through, maybe a few months.

[Fathead]

I must be going blind. I didn't see the (plus affiliates)




My bad bobolito

[lets456]

I remember when Directv and Echostar wanted to merge and it took the FCC forever to come up with a decision for them not to merge. I would assume with Verizon being so large and many other carriers for consumers to choose from, the FCC would probably give the "ok" on this. Well, let's hope that it creates vicious price wars, etc.....

[theorist]

i work at a Tmobile authorized retailer and we've been told for a while now that we are not allowed to carry cingular products. i wonder what the effect of this merger will have on us as a retailer and me as a Tmobile customer. anyone?

[Fire14]

Originally posted by: bobolito
What happened today was just an announcement of an acquisition agreement. Nothing has or will change between the companies in the next few months. Assuming everything goes as planned, any visible changes will begin to happen by the 4th quarter of this year. The approvals will take a while to go through, maybe a few months.

How long do you think it would be before they start sharing towers ? a month or not till the end of the year.

[crood]

Actually, consolidation will probably start to end the price war that is already going on. Verizon will probably do something in the near future in order to adapt to this merger. A lot of that will depend on the actual cost of combining the networks and fulfilling any requirements for approval. Cingular may need to recoup some of what they have outlayed. Verizon could go into acquisition mode to regain the top spot. This could help to stop some of the bleeding AT&T has been going through as existing customers wait to see how the new company serves them.

Does anyone have an idea what Vodafone will do now in America? There left with either going after a much smaller GSM provider, sticking with the minority share in VZW, or attempting a costly takeover of Verizon.

[Rasputin]

The merger should not affect Verizon for a while, they will have to get approval, sell off what they need to for approval. Then they need to work on converting everything over to TDMA, combine the companies, combine the networks. Give it 2 years before they are a force to be reckon with. Hopefully in the mean time Verizon will pickup Alltel and US Cellular.

[bobolito]

Fire14, once again, nothing has or will change in the next few months. As Stan Sigman said this morning, for both companies it will be "business as usual" until closing date sometime by the end of 2004. So I don't expect to see any network changes until AT LEAST next year.

[Fire14]

Originally posted by: bobolito
Fire14, once again, nothing has or will change in the next few months. As Stan Sigman said this morning, for both companies it will be "business as usual" until closing date sometime by the end of 2004. So I don't expect to see any network changes until AT LEAST next year.

Thank's

[Rasputin]

The merged companies will lose some numbers once the FCC makes them sell off some 850Mhz markets in which they will control both. With all of ATTWS troubles they might not add much of anything this year.

Could be in 2 years Verizon will have catch up to them.

[jones]

Originally posted by: Rasputin
The merged companies will lose some numbers once the FCC makes them sell off some 850Mhz markets in which they will control both.

Not reaaly.
Spectrum overlap in certain markets where the two companies operate "isn't a big deal," says Herschel Shosteck, president of The Shosteck Group, a Maryland-based wireless consultancy. The FCC removed the spectrum cap in 2003, and intense scrutiny of wireless mergers would be "contrary to the FCC's general policy of letting the market decide what's best," he says.

[Rich]

They will not be "required" to sell anything, the FCC has already lifted most of the spectrum caps.

[agentHibby]

by: Rich
They will not be "required" to sell anything; the FCC has already lifted most of the spectrum caps.

This is not true at all!!!
The rules changed that all.
Back when PCS was new they set the rule that you could only have a max of 45 MHz of spectrum of a combination of Cellular, PCS, and SMR (this is what Nextel uses) in a market. Today a PCS provider is in all Metro Markets today; some 2, or 3, or more different PCS carriers. So the FCC decided to up the max to 55 MHz back in 2002, and now no limit.
Since PCS is not in many rural markets yet, the FCC does not what a single carrier in a small town. The FCC prohibits a Cellular carrier to have both the A block and B block in a rural market. You can have both the A and B blocks in a Metro Market if the FCC approves it.

Cingular will have to sell theirs or AT&T's in certain RSA markets in Oklahoma, Texas, Florida, and Connecticut.

In any crossover networks it still needs to be approved by the FCC. The FCC will look at market control. If there are 4 carriers in a market for example and AT&T has 40% of customers and Cingular 45% that would make Cingular with 85% of the customers in a market. The FCC might not let happen because that is too much control, so it is possible that A and B in a metro market, or a Cellular and a PCS license in a market; The FCC still can ask Cingular to divest even if their is no limit.
So it is possible, but I don't think it will happen. Oklahoma City market still might go, that is up to the FCC.

When the FCC would only let Verizon have 10 MHz of Spectrum of their interest in Primeco PCS where Verizon had a cellular license, and the full 20 MHz for a total of 45MHz; this is due to market control. Even 20 MHz of the 30 MHz was not enough for Primeco to survive. [img]i/expressions/face-icon-small-wink.gif[/img]

[agentHibby]

Remeber the Bell Atlantic; Air Touch; GTE; Primeco Lp merger to Verizon Wireless started back in the Summer of 1999 and was not completed until April 3rd 2000.
Day 1 at Verizon Wireless was April 4th 2000 with National Single Rate is 1st plan they offered in all markets.

[jones]

That was then this is now.
The rules have changed.

Too bad VZW has to go thru that Rule; but then it Did not apply when they bought North Coast PCS from Cablevision.