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ComicalMoodyDan · 07-05-2002, 7:11 PM

Tuesday June 25, 4:38 pm Eastern Time
Reuters Market News
Triton PCS, AT&T May End Branding Agreement

CHICAGO (Reuters) - Wireless telephone company Triton PCS Holdings Inc. (NYSE:TPC - News) said on Tuesday its co-branding arrangement with AT&T Corp. (NYSE:T - News) is likely to end when the deal expires in February.

"More than likely we will operate as a stand-alone brand," Daniel Hopkins, senior vice president and treasurer of Triton PCS, said at Wachovia Securities' annual equity conference in Nantucket, Massachusetts.

The company's shares closed down 51 cents, or 11.26 percent, to $4.02 in New York Stock Exchange trading.

Triton PCS is an affiliate of AT&T Wireless Services Inc. (NYSE:AWE - News), which AT&T spun off last summer. A separate five-year agreement with AT&T Wireless' former parent allows Triton PCS to mention the affiliation and include the AT&T logo, along with its own SunCom brand, in its marketing materials.

A termination of the branding deal would not affect the AT&T Wireless affiliate agreement, which includes a preferred roaming arrangement. AT&T Wireless has also agreed not to compete in Triton PCS markets.

Hopkins said AT&T must notify Triton PCS 90 days before the Feb. 4 expiration date of the branding agreement if it intends not to renew the deal.

"We've had some preliminary conversations with (AT&T)," he said. "Honestly, I have been telling people we shouldn't expect them to renew in February."

Company spokeswoman Christine Davies said a decision on the renewal has not yet been reached.

STAND-ALONE BRAND HAS ADVANTAGES

Hopkins, however, said Triton PCS is well positioned to operate as a stand-alone brand due to its investment and positioning of the SunCom name. A stand-alone brand could clear up some confusion among the company's customers, he added.

Lehman Bros. analyst John Bensche said Hopkins may just be positioning himself for future negotiations.

"Triton has always been aware that this date was coming, and it's something that they've worked carefully to preserve their bargaining power on," Bensche said. Price may be an issue, he added.

According to William Blair & Co. analyst William Benton, Triton PCS has not had to pay for the AT&T brand until now, but AT&T was asking for some payment as a condition for renewing the deal.

"It would be more advantageous for (Triton) to have the AT&T brand," Benton said.

He said the brand name is stronger than SunCom, a factor that may become important in an increasingly competitive market.

Hopkins also told investors that Triton PCS continues to see good subscriber growth. It expects to have close to 775,000 subscribers at the end of the second quarter, compared with 720,000 at the end of the first quarter. It expects to have 840,000 to 850,000 customers at the end of 2002.

Previously, Triton PCS said it expected to add 40,000 to 45,000 net new subscribers in the quarter.

Hopkins said he expects about $570 million in revenue for the full year and operating cash flow of more than $150 million.

The company expects capital expenditures of $150 million in 2002 and $220 million in 2003.

Triton PCS, AT&T May End Branding Agreement

~~ILUVSOCAL~~ · 07-05-2002, 10:58 PM

Aren't they part owned by AT&T? Edge Wireless is 40% owned by AT&T.

ComicalMoodyDan · 07-06-2002, 8:10 AM

I'm not sure ILUVSOCAL, but I actually believe they are although I can't find anything about it on the net and I looked last night. One thing I have noticed lately since my mom and grandmother has signed up for SunCom also is while my phone on the screen says "SunCom AT&T" theres just says "SunCom".

It seems like to me that SunCom (Triton PCS) is slowly trying to pull away from the AT&T logo and do things more on there own.

aiwapro · 07-06-2002, 3:40 PM

It's always good to be able to stand on your own two feet which I am very sure they can, but like the article says, the brand name thing could come into affect in a very competitive market.

ComicalMoodyDan · 07-06-2002, 4:45 PM

I'll agree with you there I think they can stand on there own but the AT&T logo does help. That was one thing that made me try SunCom. I thought to myself hey with that AT&T logo in there they have to be a good company. I'm sure other consumer's think like that too.

By the way is it just me or have I been agreeing with you a lot today? LOL isn't that different.

CDANMA · 07-06-2002, 4:55 PM

Well I have to agree as well...
I think the educated cell phone shopper will not care if the AT&T logo is there, its going to be the ones that have never had a cell phone or new to a Suncom area that might hurt them....

cryogenic · 07-07-2002, 10:53 AM

From the way I understand it, AT&T does not own Triton at all, it's just a marketing agreement that, as a result of their affiliation, Suncom is allowed to put the AT&T logo on their signs stating that they're a member of the AT&T network. If the agreement is not renewed, it looks like they'll still be a member of the AT&T network, but will not be able to use the name.

ComicalMoodyDan · 07-07-2002, 11:39 AM

I thought I read somewhere that AT&T did have a stake in Triton PCS but I can't find a damn thing on the net about it and I'm not sure at all.

You could very well be right though cryogenic as what you just said does sound right.

07-05-2002, 7:11 PM	#1
ComicalMoodyDan Join Date: Dec 2001 Location: Kingsport, TN Posts: 6,084 Phone(s): Blackberry 8520 Provider(s): T-Mobile Devices: T-Mobile @Home Thanks: 0 Thanked 20 Times in 15 Posts	Triton PCS, AT&T May End Branding Agreement Tuesday June 25, 4:38 pm Eastern Time Reuters Market News Triton PCS, AT&T May End Branding Agreement CHICAGO (Reuters) - Wireless telephone company Triton PCS Holdings Inc. (NYSE:TPC - News) said on Tuesday its co-branding arrangement with AT&T Corp. (NYSE:T - News) is likely to end when the deal expires in February. "More than likely we will operate as a stand-alone brand," Daniel Hopkins, senior vice president and treasurer of Triton PCS, said at Wachovia Securities' annual equity conference in Nantucket, Massachusetts. The company's shares closed down 51 cents, or 11.26 percent, to $4.02 in New York Stock Exchange trading. Triton PCS is an affiliate of AT&T Wireless Services Inc. (NYSE:AWE - News), which AT&T spun off last summer. A separate five-year agreement with AT&T Wireless' former parent allows Triton PCS to mention the affiliation and include the AT&T logo, along with its own SunCom brand, in its marketing materials. A termination of the branding deal would not affect the AT&T Wireless affiliate agreement, which includes a preferred roaming arrangement. AT&T Wireless has also agreed not to compete in Triton PCS markets. Hopkins said AT&T must notify Triton PCS 90 days before the Feb. 4 expiration date of the branding agreement if it intends not to renew the deal. "We've had some preliminary conversations with (AT&T)," he said. "Honestly, I have been telling people we shouldn't expect them to renew in February." Company spokeswoman Christine Davies said a decision on the renewal has not yet been reached. STAND-ALONE BRAND HAS ADVANTAGES Hopkins, however, said Triton PCS is well positioned to operate as a stand-alone brand due to its investment and positioning of the SunCom name. A stand-alone brand could clear up some confusion among the company's customers, he added. Lehman Bros. analyst John Bensche said Hopkins may just be positioning himself for future negotiations. "Triton has always been aware that this date was coming, and it's something that they've worked carefully to preserve their bargaining power on," Bensche said. Price may be an issue, he added. According to William Blair & Co. analyst William Benton, Triton PCS has not had to pay for the AT&T brand until now, but AT&T was asking for some payment as a condition for renewing the deal. "It would be more advantageous for (Triton) to have the AT&T brand," Benton said. He said the brand name is stronger than SunCom, a factor that may become important in an increasingly competitive market. Hopkins also told investors that Triton PCS continues to see good subscriber growth. It expects to have close to 775,000 subscribers at the end of the second quarter, compared with 720,000 at the end of the first quarter. It expects to have 840,000 to 850,000 customers at the end of 2002. Previously, Triton PCS said it expected to add 40,000 to 45,000 net new subscribers in the quarter. Hopkins said he expects about $570 million in revenue for the full year and operating cash flow of more than $150 million. The company expects capital expenditures of $150 million in 2002 and $220 million in 2003. Triton PCS, AT&T May End Branding Agreement

07-07-2002, 10:53 AM	#7
cryogenic Join Date: May 2002 Location: Knoxville, TN Posts: 1,443 Phone(s): Samsung A990 Provider(s): Verizon Devices: iriver H10 6GB mp3 player Thanks: 0 Thanked 0 Times in 0 Posts	From the way I understand it, AT&T does not own Triton at all, it's just a marketing agreement that, as a result of their affiliation, Suncom is allowed to put the AT&T logo on their signs stating that they're a member of the AT&T network. If the agreement is not renewed, it looks like they'll still be a member of the AT&T network, but will not be able to use the name. __________________ Firefox My blog/pic gallery/etc

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07-05-2002, 10:58 PM	#2
~~ILUVSOCAL~~ Banned Join Date: Feb 2002 Location: Redwood Valley, CA Posts: 2,485 Phone(s): Nokia 3600(me), SE T616(me),T226(mom), Samsung SGH-x426(me), Nokia 7210(dad) Provider(s): AT&T(Me),Cingular(Me,Mom),Edge Wireless(Dad) Devices: BlueTrek G2 Bluetooth Headset Thanks: 0 Thanked 0 Times in 0 Posts My Auctions	Aren't they part owned by AT&T? Edge Wireless is 40% owned by AT&T.

07-06-2002, 8:10 AM	Original Poster #3
ComicalMoodyDan Join Date: Dec 2001 Location: Kingsport, TN Posts: 6,084 Phone(s): Blackberry 8520 Provider(s): T-Mobile Devices: T-Mobile @Home Thanks: 0 Thanked 20 Times in 15 Posts	I'm not sure ILUVSOCAL, but I actually believe they are although I can't find anything about it on the net and I looked last night. One thing I have noticed lately since my mom and grandmother has signed up for SunCom also is while my phone on the screen says "SunCom AT&T" theres just says "SunCom". It seems like to me that SunCom (Triton PCS) is slowly trying to pull away from the AT&T logo and do things more on there own.

07-06-2002, 3:40 PM	#4
aiwapro Join Date: Jan 2002 Posts: 2,455 Thanks: 0 Thanked 0 Times in 0 Posts	It's always good to be able to stand on your own two feet which I am very sure they can, but like the article says, the brand name thing could come into affect in a very competitive market.

07-06-2002, 4:45 PM	Original Poster #5
ComicalMoodyDan Join Date: Dec 2001 Location: Kingsport, TN Posts: 6,084 Phone(s): Blackberry 8520 Provider(s): T-Mobile Devices: T-Mobile @Home Thanks: 0 Thanked 20 Times in 15 Posts	I'll agree with you there I think they can stand on there own but the AT&T logo does help. That was one thing that made me try SunCom. I thought to myself hey with that AT&T logo in there they have to be a good company. I'm sure other consumer's think like that too. By the way is it just me or have I been agreeing with you a lot today? LOL isn't that different.

07-06-2002, 4:55 PM	#6
CDANMA Junior Member Join Date: Apr 2002 Posts: 110 Thanks: 0 Thanked 0 Times in 0 Posts	Well I have to agree as well... I think the educated cell phone shopper will not care if the AT&T logo is there, its going to be the ones that have never had a cell phone or new to a Suncom area that might hurt them....

07-07-2002, 11:39 AM	Original Poster #8
ComicalMoodyDan Join Date: Dec 2001 Location: Kingsport, TN Posts: 6,084 Phone(s): Blackberry 8520 Provider(s): T-Mobile Devices: T-Mobile @Home Thanks: 0 Thanked 20 Times in 15 Posts	I thought I read somewhere that AT&T did have a stake in Triton PCS but I can't find a damn thing on the net about it and I'm not sure at all. You could very well be right though cryogenic as what you just said does sound right.

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