AT&T will re-enter the wireless market through a resale agreement with Sprint. The deal will allow AT&T to sell AT&T-branded wireless service to its over 30 million business and consumer customers. As a result of the five-year agreement, AT&T expects to significantly expand the wireless services it is currently testing in select U.S. markets with hopes of a launch later this year. AT&T plans to bundle wireless with its other services. Additional terms of the agreement include:
- Non-exclusive five-year deal
- Freedom for both parties to compete in market without restrictions
- The ability of AT&T to utilize existing customer channels and technology to provide directory assistance, customer support, and billing for customers.
- The ability of AT&T to sell AT&T-branded handsets through its own vendor relationships
- The ability to leverage Sprint's existing wireless data network and innovate on top of it with AT&T-developed content and ISP platforms, value-added voice services and Virtual Private Networking services.
- No financial terms of the deal were disclosed
- Sprint operates a nationwide CDMA network
- In February 2004, the board of directors of AT&T Wireless selected Cingular Wireless as the winning bidder to acquire the company for $41 billion in cash. Shareholders of AT&T Wireless will receive $15 cash per common share. Cingular will also assume $6 billion in debt. giving the transaction a full value of $47 billion. The combination of Cingular Wireless and AT&T Wireless will create the largest GSM/GPRS network in the U.S. with spectrum in 49 states. Cingular currently has 24 million customers and AT&T Wireless has 22 million subscribers.
