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.

May 18, 2004

1 Min Read
NetworkComputing logo in a gray background | NetworkComputing

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.Specifically, the company said it would add wireless services to its OneRate local and long-distance bundles and its CallVantage voice-over-IP (VoIP) service. The company said that, in the next 18 months, it also will provide handsets that can connect either to Wi-Fi VoIP systems and the cellular network.

AT&T will create its own content and applications for its customers and provide its own support.

The company said in its statement that its deal with Sprint PCS is non-exclusive and will lead to the two companies competing with each other "without restrictions." Besides selling the wireless service under its own name, AT&T also will brand handsets and establish its own relationships with handset vendors, it said.

The companies released no financial details about the deal.

SUBSCRIBE TO OUR NEWSLETTER
Stay informed! Sign up to get expert advice and insight delivered direct to your inbox

You May Also Like


More Insights