Feeds

Cingular's indigestion could be worse

Churn down below

  • alert
  • submit to reddit

Next gen security for virtualised datacentres

The cost of swallowing AT&T Wireless dulled the results of the United States' largest mobile network Cingular. Profits fell to $147m for 2Q FY2005, a loss of $93m over the first six months of this year. Revenue for the quarter was $8.61bn. Merger costs were $204m in the period.

But at least the indigestion doesn't signal food poisoning.

Cingular spent $41bn on a company in turmoil. AT&T Wireless rarely managed to turn a profit, and its final months as an independent company were marred by subscribers fleeing for other providers after it botched number portability. This chaos doesn't appear to have infected Cingular, as there were no nasty surprises in the subscriber numbers. Cingular added 1.1m net subscribers, monthly churn is 2.2 per cent - down for the third quarter running - and ARPUs (Average Revenue Per User) fell slightly to $50.75. Almost all of the 4.4m new subscribers bought postpaid contracts.

7 per cent of the subscriber base switched from TDMA to GSM in the quarter, leaving 22 per cent yet to switch, although GSM carried nine out of every ten minutes of calls on the combined network. AT&T's TDMA users have been a focus for rival carriers as Cingular has upgraded the network to the global standard, which required new handsets.

Cingular has barely begun to integrate the infrastructure of the two companies, admitted Cingular CEO Stan Sigman, which is where the real savings - and risks, too will be found. ®

Related stories

Who wants a piece of T-Mobile?
Cingular posts Q4 loss
Cingular lays off 7,000

The essential guide to IT transformation

More from The Register

next story
Don't call it throttling: Ericsson 'priority' tech gives users their own slice of spectrum
Actually it's a nifty trick - at least you'll pay for what you get
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Three floats Jolla in Hong Kong: Says Sailfish is '3rd option'
Network throws hat into ring with Linux-powered handsets
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
EE: STILL Blighty's best mobe network, says 'Frappucino' Moore
Fresh round of network stats fisticuffs possibly on the cards here
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
Tech city types developing 'Google Glass for the blind' app
An app and service where other people 'see' for you
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
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.