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Cingular/Att Merger

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Submitted By montel
Words 433
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Ronald Morris

In October 26, 2004 the Justice department approved the $41 billion merger of Cingular wireless LLC and AT&T wireless services Inc; this merger required the combined company to sell off assets in eleven states in order to satisfy antitrust concerns, such as airwave licenses, customer contracts and other assets. The merger of Cingular and AT&T wireless would create over 47 million customers in 49 states. Surpassing Verizon wireless as the nation’s largest cellular provider. Without doing this wireless customers in these markets would have had fewer choices for wireless service and faced the risk of higher prices, and fewer choices for high speed wireless data services. The justice Department filed a complaint with concerns of the merger could result in higher prices and slower deployment of new service to consumers.”By approving the merger the federal regulators are saying goodbye to price reduction and better services options consumers have grown to expect from cell phones companies”,(Gene Kimmelman Senior Director for public policy advocacy at consumers union. Stanley T.Sigman, President and chief executive of Atlanta-Based Cingular Said” This merger will create a premier provider that is very well-equipped to meet the most demanding need of wireless customers today and in the future,” The outcome of the company’s responses to the issue is, The merger was completed, AT&T wireless shareholders receive $ 15 per common share or approximately $41 billion. The newly combined company with more than 46 million customers and about 70,000 employees has created the nation’s biggest wireless carrier with the largest digital voice and data network in the country.AT&T now offers 3G data coverage in all major cities and states and are expanding coverage in the rural America. This transition was seamless customers of both companies are able to continue to enjoy the benefits of their current phones, rate plans and feature without any service interruptions. Customer benefits: Customers from both companies can use the network without roaming charges. Customer have the ability to make unlimited mobile to mobile calls, Customers have the widest choice of over 150 handsets and devices in the industry. Customer also has the largest international coverage of any U.S. carrier. “I am so proud to be a part of one AT&T”.

References
Noguchi, Y. (2004,October 26). washingtonpost.com. Retrieved from http:www.washingtonpost.com
PRNewswire. (2004,October 26). Cingular Complete Merger With AT&T Wireless;Creates Nations’s Largest Carrier. Retrieved from http://www.prnewswire.com/news-release/cingular-completes-merger-with-att-wireless

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