Feeds

Cingular's indigestion could be worse

Churn down below

  • alert
  • submit to reddit

Internet Security Threat Report 2014

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

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Same old iPad? NO. The new 'soft SIMs' are BIG NEWS
AppleSIM 'ware to allow quick switch of carriers
Brits: Google, can you scrape 60k pages from web, pleeease
Hey, c'mon Choc Factory, it's our 'right to be forgotten'
Of COURSE Stephen Elop's to blame for Nokia woes, says author
'Google did have some unique propositions for Nokia'
FCC, Google cast eye over millimetre wireless
The smaller the wave, the bigger 5G's chances of success
It's even GRIMMER up North after MEGA SKY BROADBAND OUTAGE
By 'eck! Eccles cake production thrown into jeopardy
Mobile coverage on trains really is pants
You thought it was just *insert your provider here*, but now we have numbers
Don't mess with Texas ('cos it's getting Google Fiber and you're not)
A bit late, but company says 1Gbps Austin network almost ready to compete with AT&T
prev story

Whitepapers

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.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
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?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.