Feeds

Cingular eyeing AT&T Wireless again

Negotiations on again

  • alert
  • submit to reddit

Intelligent flash storage arrays

There is speculation that the long-delayed shake-out in the US wireless services sector could be starting, after reports that US mobile operator Cingular Wireless is again in negotiations with AT&T Wireless Services.

Both companies have been talking to each other off and on since reports of a possible acquisition first surfaced in April 2002. Although there is thought to be no formal offer on the table, negotiations are rumored to have progressed significantly, and the parent organizations of Cingular have supposedly given their backing to fund a purchase.

Cingular is the number-two ranked US wireless operator, while AT&T Wireless occupies the number-three slot. Cingular is particularly interested in AT&T Wireless because of its strong balance sheet and large number of business subscribers. Other carriers are also thought to be keen, including the mobile arm of Deutsche Telekom, T-Mobile.

Cingular is said to have considered an IPO to help fund a deal, but this has been cast aside for now. Instead, Cingular is expected to fund the deal using the cash on its balance sheet, as well as the financial muscle of its two parents, SBC Communications and BellSouth. Cingular would need all the financial backing it could get if the deal were to go through, as AT&T Wireless is thought to have a market capitalization in the region of $23 billion.

The US wireless sector is long overdue for consolidation, and the six national carriers have recently launched aggressive pricing and marketing campaigns to woo each other's customers, as overall subscriber growth in the United States has slowed.

Source: Computerwire/Datamonitor

Internet Security Threat Report 2014

More from The Register

next story
Mighty Blighty broadbanders beg: Let us lay cable in BT's, er, ducts
Complain to Ofcom that telco has 'effective monopoly'
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Ofcom tackles complaint over Premier League footie TV rights
Virgin Media: UK fans pay the most for the fewest matches
FCC: Gonna need y'all to cough up $1.5bn to put broadband in schools
Kids need more fiber, says Wheeler, and you'll pay for it
prev story

Whitepapers

Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.