Feeds

Dust settles on AT&T Wireless battle

Vodafone outflanked by Cingular Wireless

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Cingular has won the battle for AT&T Wireless with a $41bn bid.

A day and night of high drama was brought to a close after Vodafone withdrew from the battle for AT&T Wireless after being outflanked by Cingular Wireless. Cingular stands to make some significant synergies with the number-three US wireless operator, while Vodafone is left without a branded presence in the world's biggest market.

Cingular's bid is still subject to the approval of AT&T Wireless shareholders and US regulatory authorities, and is expected to be completed in Q4 2004.

Cingular president and CEO Stan Sigman confirmed that the deal should see many synergies between the two operators, with cost savings of $1bn in 2005, and $2bn annually from 2007, which he believed to be a conservative estimate.

The combined company will have 46 million customers in 49 states, and would cover 97 of the nation's top 100 markets. The combined 2003 annual revenues of the two companies are in excess of $32bn.

So what now for Vodafone? Many industry analysts agree that Vodafone needs to resolve its US position, where it has an invisible but profitable presence with its 45 per cent stake in Verizon Wireless.

Others have speculated that the failure in the US will trigger Vodafone to seek to resolve its remaining European problem market, namely France, where it has a minority stake in France's second largest mobile phone operator SFR, which is owned by Cegetel, which is in turn owned by the media giant Vivendi Universal.

On news that Vodafone was exiting the bidding process for AT&T Wireless, shares in Vivendi Universal immediately jumped 5.5 per cent, as investors speculated that it could now be a bid target for Vodafone.

The repercussion of the deal on the US wireless market remain uncertain. With the number of operators set to be reduced to five, and with Vodafone still without a credible presence in the world's most valuable market, it remains to be seen how long the world's largest mobile operator will be content to put up with the status quo at its US operation.

Whatever happens, Cingular will have its work cut out over the coming months to turn around the decline at AT&T Wireless; leaked figures have revealed that AT&T Wireless lost 4 per cent of its customers in January, and ARPU figures were down 10 per cent.

Source: ComputerWire/Datamonitor

Intelligent flash storage arrays

More from The Register

next story
YOU are the threat: True confessions of real-life sysadmins
Who will save the systems from the men and women who save the systems from you?
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Broadband sellers in the UK are UP TO no good, says Which?
Speedy network claims only apply to 10% of customers
Virgin Media struck dumb by NATIONWIDE packet loss balls-up
Turning it off and on again fixes glitch 12 HOURS LATER
Ofcom snatches 700MHz off digital telly, hands it to mobile data providers
Hungry mobe'n'slab-waving Blighty swallows spectrum
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
The Heartbleed Bug: how to protect your business with Symantec
What happens when the next Heartbleed (or worse) comes along, and what can you do to weather another chapter in an all-too-familiar string of debilitating attacks?
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.