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AT&T Re-Enters Wireless Market

AT&T said Tuesday that it will re-enter the wireless business, reselling Sprint PCS wireless service to its customer base and bundling it with other services such as Voice over IP.

AT&T started, then spun off, AT&T Wireless, which now is being acquired by Cingular Wireless. It has publicly indicated its intention to to re-enter the wireless arena, although not set up its own wireless infrastructure.

The company said in a statement Tuesday that it will re-sell Sprint wireless service under the AT&T brand name to its 30 million current customers. It said it has entered a five-year agreement with Sprint and expects a widespread launch its service by the end of the year. It already has been test marketing the service in a few areas.

AT&T said it is developing bundled packages that it claims will be highly attractive for its consumer and enterprise users.

"AT&T has proved it is capable of rolling out bundles of new and complex services quickly and cost-effectively," AT&T CEO David W. Dorman said in a statement.

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