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Top message:  Strange? by muchdrama   Jun 2, 2004, 10:03 AM

Replying to:  Re: Strange? by dgduris   Jun 8, 2004, 7:11 AM

Re: Strange?

by Rich Brome (Moderator)    Jun 8, 2004, 7:01 PM

dgduris said:
This one threw me for a moment too. But, consider AT&T's new strategy. They have sold the GSM business to Cingular (pending October FCC approval).

Actually, AT&T Wireless is a totally separate company from AT&T. So AT&T Wireless is actually merging with Cingular completely. That includes everything analog, TDMA, GSM, and WCDMA.

AT&T have also let it be known that they are keen to get back into the wireless business ASAP following the completion of the Cingular deal and have signed at least one agreement to re-sell wireless services of other carriers (I think their first deal is with Sprint - non-GSM).

Just to be clear, AT&T isn't in the wireless business right now; they haven't been since they spun off AT&T Wireless several years ago.

There is a pretty complex marketing agreement, but AT&T is going to try to keep their current subscribers after the Cingular deal is done.

For anyone to "stay" with the AT&T brand, they would have to break their contract, since it will be inherited by Cingular.

...What better way to do that than to put them on a CDMA phone now and tell them they can "Keep their phone and stay with AT&T" after the merger.

This is not a CDMA phone - this new Nokia is WCDMA. Huge difference - they are totally different, incompatible standards.

... but it may indicate that we won't see new GSM phones like the 6620 out of AT&T and will have to wait to get it from Cingular after the merger. Mad

Doubtful. It benefits no one for AT&T to stop releasing new GSM phones. The law actually requires AT&T Wireless to keep acting like a competitive company until the deal closes. But also, Cingular isn't paying all those billions to buy a sour company. If the AT&T Wireless shareholders want their big payday from the buyout, they need to make sure it's a healthy, thriving company until the very last day, otherwise Cingular could always back out.

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