AT&T Mobility

AT&T Mobility LLC
Type Subsidiary of AT&T
Founded 2000 (as Cingular Wireless)
Headquarters Flag of the United States Atlanta, Georgia, USA
Area served United States
Key people Ralph de la Vega, CEO
Peter A. Ritcher, CFO
Industry Wireless Services
Products HSDPA, HSUPA, UMTS, W-CDMA, EDGE, GPRS, GSM, Wireless Data Services (MEdia Net), Two way messaging, Push to Talk
Revenue ▲US$42.7 billion (2007) [1]
Employees 69,876 (2008)
Parent AT&T
Website wireless.att.com

AT&T Mobility LLC (usually branded AT&T,[2] and formerly named Cingular Wireless LLC) is the wholly owned wireless subsidiary of AT&T Inc. AT&T Mobility is the largest mobile phone company (in terms of number of subscribers) in the United States, ahead of Verizon Wireless[3]. AT&T Mobility has approximately 72.9 million subscribers as of the third quarter 2008. [4]

Formerly a joint venture between SBC Communications and BellSouth, Cingular Wireless soon acquired the old AT&T Wireless; SBC later acquired the original AT&T and re-branded as "the new AT&T". Cingular became wholly-owned by the new AT&T in December 2006 as a result of AT&T's acquisition of BellSouth.

In January 2007, Cingular confirmed it would itself rebrand under the AT&T moniker. The corporate name change occurred immediately, although, for regulatory and brand-awareness reasons, both brands were used in the wireless unit's signage and advertising during a transition period.[5] The transition concluded in late June, just prior to the rollout of the Apple iPhone.

Among the services that AT&T aggressively promotes is its "Rollover" service, allowing customers to keep unused minutes from month to month on a twelve-month rolling cycle on its popular "Nation" nationwide plans. Beginning in July 2007, AT&T now allows its AT&T Unity plan users to have "Rollover", a service which was exclusive to the "Nation" plans. AT&T also launched video share in 2007, in which a mobile caller can stream live video from one phone to another over the 3G network with video share capable phones. This allows one mobile phone user to view another's camera through the mobile phone in real time.

A large number of AT&T Mobility employees are unionized, belonging to the Communications Workers of America. The CWA represented roughly 15,000 of the previous 20,000 formerly AT&T Wireless employees as of early 2006.[6] As of the end of 2007, the CWA website claims roughly 40,000 workers of AT&T Mobility are represented by the union.[7]

Contents

History

Cingular Wireless logo, 2000-2004

Cingular Wireless LLC was founded in 2000 as a joint venture of SBC Communications and BellSouth. The joint venture created the nation's second largest carrier. Cingular grew out of a conglomeration of more than 100 companies [8], with 12 well-known regional companies with Bell roots. The 12 companies included:

Also included were:

Cingular's lineage can be traced back to Advanced Mobile Phone Service, which was a subsidiary of AT&T created in 1978 to provide cellular service nationwide. AMPS, Inc. was divided among the Regional Bell Operating Companies as part of the Bell System divestiture.

With the exception of Pacific Bell and BellSouth Mobility DCS, the digital network consisted of D-AMPS technology. The Pacific Bell and BellSouth Mobility DCS networks used GSM technology on the PCS frequency band (1900 MHz).

In October 2007, AT&T’s president and chief executive officer Stan Sigman announced his retirement. Ralph de la Vega, group president-Regional Telecom & Entertainment, was named as president and CEO, AT&T Mobility.[9]

AT&T Wireless merger

In February 2004, after a bidding war with Britain's Vodafone Plc (45% owners of Verizon Wireless) Cingular announced that it would purchase AT&T Wireless Services, Inc., for $41 billion. This was more than twice the company's recent trading value. Some analysts have said that although Vodafone was unsuccessful in acquiring AT&T Wireless, it was nonetheless successful in forcing Cingular to overpay for the acquisition.

The merger was completed on October 26, 2004. The combined company had a customer base of 46 million people at the time, making Cingular the largest wireless provider in the United States. AT&T Wireless was then legally renamed New Cingular Wireless Services, Inc. [10] Shortly after new commercials were shown a with the "AT&T" transforming into the Cingular logo, and with the Cingular logo's text turned blue to acknowledge the change.

First announced on June 22, 2005 Cingular Wireless announced the intention to divest its Caribbean and Bermuda operations and licenses which it acquired from the acquisition of AT&T Wireless, to Irish-owned and Jamaica-based Digicel Group under undisclosed financial terms.[11][12][13][14]

In 2006, one year following the deal, a high ranking source allegedly close to the sale pointed the Barbados Daily Nation Newspaper towards some SEC filings made by Cingular which were said to establish an idea of the approximate sale price of the deal. According to the SEC filings Cingular was paid around US$122 million, with much of that $122m cost to Digicel going towards the purchasing of the former AT&T Wireless assets in Barbados.

GSM Facilities

In California, Nevada, Northern New Jersey and New York City, Cingular and T-Mobile USA maintained and shared a GSM-1900 network prior to the acquisition of AT&T Wireless, through a joint venture known as GSM Facilities. The network sharing agreement allowed Cingular to offer local service in northern New Jersey and New York City and T-Mobile to offer service in California and Nevada. On May 25, 2004, Cingular and T-Mobile USA announced their intention to dissolve the agreement contingent on Cingular's successful acquisition of AT&T Wireless, the Cingular network was transferred to T-Mobile, with Cingular continuing work on the GSM facilities at AT&T Wireless sites. [15]

Network coverage

An AT&T Mobility Device Support Center in Las Vegas, Nevada.

AT&T Mobility was formed through mergers and acquisitions, and as a result of these — as well as the rapid technological change in the wireless industry — AT&T Mobility operates wireless networks using many different wireless communication standards. The most widely used of these technologies is called Global System for Mobile Communications, or GSM. On top of its GSM network, AT&T Mobility operates a data network called GPRS (General Packet Radio Service) and an upgrade for faster speeds called EDGE (Enhanced Data rates for GSM Evolution). AT&T Mobility offers Push to talk (PTT) service using network technology from Kodiak Networks.

AT&T Mobility (formerly Cingular) formerly supported legacy D-AMPS/TDMA, and analog networks; however, in March 2006 they announced that these networks would be shut down by February 2008. As part of this effort, AT&T Mobility will charge a $4.99 monthly fee to those customers who still use D-AMPS-based phones. As of March 31, 2007 Cingular (now AT&T Mobility) no longer supported the TDMA technology for its GoPhone (pre-paid) customers. All GoPhone customers were forced to migrate to the newer GSM technology.

As of February 18, 2008, AT&T Mobility has officially ended service on their AMPS and TDMA network, except for in areas previously operated by Dobson Communications. The Dobson AMPS and TDMA network was shut down March 1, 2008.

Former networks also include various paging services and the Cingular Interactive division, which became Velocita Wireless which was purchased by Sprint Nextel.[16]

In 2002, Cingular (now AT&T Mobility) began an initiative called "Project Genesis" that involved a GSM/GPRS overlay of the entire wireless network. Project Genesis was completed by the end of 2004.

AT&T Mobility has launched a high-speed network known as "BroadbandConnect", based on UMTS and High-Speed Downlink Packet Access (HSDPA), to counter Verizon Wireless, Alltel and Sprint's EV-DO networks. UMTS service was launched on December 6, 2005 in Seattle, Portland, San Francisco, Salt Lake City, San Jose, San Diego, Las Vegas, Phoenix, Puerto Rico, Austin, Houston, Dallas, Detroit, Chicago, Boston, Baltimore and Washington D.C. Cingular expected to launch UMTS in all major metropolitan markets by the end of 2006. AT&T Mobility is currently working on upgrading its 3G network to HSUPA which will replace the current UMTS upload method. New PC cards featuring HSUPA will be released in October and November by AT&T.[17].

"Cingular is now the new AT&T"

On November 20, 2005, Ed Whitacre, then CEO of the newly merged SBC/AT&T, announced plans to market Cingular's service under the AT&T brand. BellSouth spokesman Jeff Battcher countered that the terms of the joint venture allow either party to sell the service under another name, and that he believes they will be using the brand to market to business customers.[18] Cingular president Stan Sigman concurred with BellSouth's position, indicating that the Cingular brand would continue but be sold under the AT&T brand where offered in packages with other AT&T services, such as data and wireline telephony.

However, AT&T, Inc. announced on March 5, 2006[19] that it would acquire BellSouth. The acquisition was finalized on December 29, 2006 when the FCC gave its final approval. According to AT&T, the company began the rebranding of Cingular Wireless to "AT&T". [20]

On January 12, 2007 AT&T announced[21] a major rebranding transition campaign to transition Cingular to the new AT&T. The former Cingular stores, after being rebranded to AT&T, sold all AT&T products and services: wireless, landline, Internet, U-Verse, and more. AT&T will have all services under one brand. There will be no "AT&T Mobile" nor a rebirth of AT&T Wireless as many have speculated. This might lead to confusion by customers because there would be no name difference between AT&T's landline and wireless services. The transition is reflected in this timeline:

Acquisition of Dobson Communications

On November 15, 2007 AT&T completed its acquisition of Dobson Communications. Dobson marketed the Cellular One brand in rural and suburban locations in various areas of the United States, including Alaska. AT&T bought Dobson for $13 per share, as well as assuming the regional carrier's debt, which will cost the nation's largest carrier about $5.1 billion total. The U.S. Justice Department had ordered AT&T Inc. to sell assets in five U.S. states to complete its $2.8 billion Dobson Communications Corp. takeover. The department ordered AT&T to divest certain cell-phone assets in Kentucky, Oklahoma, Missouri, Pennsylvania and Texas where AT&T and Dobson are most competitive. AT&T is the largest U.S. cell-phone provider, with more than 65.7 million subscribers in 50 states. Dobson's Cellular One was the ninth largest, with 1.7 million subscribers in 17 states. Dobson had been an AT&T roaming partner since 1990, and the acquisition is expected to bring growth to Dobson's current markets. The purchase allowed AT&T to operate in the more rural areas of the United States including Alaska & West Virginia. [23]

Acquisition of Centennial Wireless

On November 7, 2008, AT&T announced it's plans to acquire Centennial Wireless for $944 million. AT&T said that the acquisition would provide customers with better coverage in the Southeast, Midwest, Puerto Rico, and the US Virgin Islands. The deal will also give AT&T more highly-coveted 850mhz spectrum in the current Centennial Wireless coverage area. AT&T would also gain Centennial's 1.1 million subscribers. The deal is subject to regulatory approval. [24]

Business services

AT&T Mobility is known for its enterprise services, offered through its Business Markets Group, a subsidiary company of the joint venture. It acquired a considerable stable of business clients through the acquisition of AT&T Wireless in 2004, and boasts that it currently serves over 95 percent of the Fortune 100 and over 80 percent of the Fortune 500. AT&T Mobility is also the largest provider of BlackBerry service in North America.[25]

Marketing

Fewest dropped calls

During the first quarter of 2006, Telephia reported that during an extensive nationwide test of major wireless carriers in 350 metropolitan markets around the country, Cingular dropped the fewest number of calls across the country. Cingular in turn began aggressively advertising the "Allover Network", citing Telephia as "the leading independent research company." Telephia's report was in stark contrast to the Consumers Union publication, Consumer Reports, based on a survey of 50,000 of its members in 18 cities, which criticized Cingular for static and dropped calls.[26] Furthermore, J.D. Power and Associates consistently ranked Cingular at or near the bottom of every geographical region in its 2006 Wireless Call Quality Study, which is based on a smaller survey of 23,000 wireless users.

Telephia, which tests wireless networks by making over 6 million calls per year in what it claims is the world's largest wireless network test program, initially refused to provide details on its study, and a spokesman for the company has said, according to the Boston Globe, that "Cingular shouldn't have even mentioned the company's name to a reporter."[27] The research company later stated that Cingular did indeed have a "statistically-significant lower dropped-call rate than the competition across some market/time period groupings", but that Telephia had "no knowledge of the specific methodology (markets, time periods or statistical thresholds) that Cingular used for its 'lowest dropped call' claim."[28] While AT&T has abandoned its verbal claim of "The Fewest Dropped Calls" in its commercials, it continues to show situations where two persons are speaking with each other on their phones, and one of the user's call drops. AT&T now states "We are still continuing to run ads that emphasize the importance of not dropping calls. That campaign is continuing.[29]

iPhone

On June 29, 2007 the Apple iPhone was introduced to the U.S. market, with AT&T being the exclusive carrier for the device within the United States.

Teething problems with AT&T's billing process emerged soon after the iPhone's release, as early adopters started receiving exceptionally detailed monthly telephone bills[30][31] with one of the most notable being the 300-page iPhone bill that was featured in an online video by blogger Justine Ezarik.[32][33]

The iPhone 3G launched with AT&T on July 11, 2008. Although specific AT&T sales numbers are unavailable, Apple announced that over 1 million iPhone 3G devices were sold during its first three days. In the United States, the iPhone 3G is only available with an AT&T contract. AT&T is rumored to have heavily subsidized the iPhone's price to reach a broader spectrum of consumers.

In August 2008 Best Buy announced that it will start selling the iPhone (for use on the AT&T network) in September, 2008. [2]. In September, 2008, AT&T announced that it will start selling the iPhone 3G in Puerto Rico and in the US Virgin Islands[3].

Plans

AT&T Mobility sells a variety of wireless services, including individual and "FamilyTalk" plans for the consumer.

AT&T Unity

AT&T Unity is a service offered for users of landline and wireless AT&T service. It provides free unlimited calling to users of AT&T landline and wireless services. AT&T Unity customers also receive "Roover" minutes.

Controversies

Cingular/AT&T sponsorship controversy

Cingular Wireless began its sponsorship of the #31 Chevrolet, owned by Richard Childress Racing, in the NASCAR Winston Cup Series in 2002. Two years later, when Nextel Communications (now Sprint Nextel) purchased the naming rights to NASCAR's top division (rebranding the division as the Nextel Cup, and later the Sprint Cup), Cingular and Alltel, sponsor of the #12 Dodge (owned by Penske Racing and driven by Ryan Newman), were allowed to stay as sponsors under a grandfather clause. In early 2007, following its purchase by AT&T, Cingular began a re-branding effort to the AT&T Mobility brand. NASCAR quickly claimed that a clause in their contract with Sprint Nextel would not allow Cingular to change either the name or brand advertised on the #31 car.

After trying and failing to persuade NASCAR to approve the addition of the AT&T globe logo to the rear of the car, AT&T filed a lawsuit against NASCAR on March 16, 2007. On May 18, AT&T won a preliminary injunction in the United States District Court for the Northern District of Georgia in Atlanta and, following a failed emergency motion for a stay by NASCAR on May 19, re-branded the #31 car, now driven by Jeff Burton, in time for the Nextel All-Star Challenge that evening.[34][35] NASCAR was later granted an appeal to be heard on August 2.

On June 17, NASCAR announced it had filed a US$100 million dollar lawsuit against AT&T and would like AT&T and all other telecommunications companies out of the sport in 2008.[36]

On August 13, a ruling by the United States Court of Appeals for the Eleventh Circuit cleared the way for NASCAR to prevent AT&T Inc. from featuring its logo on the car. The 11th Circuit threw out a lower court's ruling that prevented NASCAR from stopping AT&T's plans. The appeals court remanded the case to the district court.[37]

At first practice for the Sharpie 500 at Bristol Motor Speedway on August 24, the #31 car was colored orange and black, but was bare; that is, no primary sponsor (but associate sponsors appeared) were on the car, similar to Formula One cars run in races where tobacco advertising was prohibited. The pit crew wore grey Richard Childress Racing shirts and Burton had a plain orange fire suit with associate sponsors. The car which carried a "subliminal advertising" scheme arrived in a black hauler with only the number 31 on the side. NASCAR officials said the car would not have made it through inspection with the AT&T logos.[38] During that weekend, AT&T claimed that two alternate paint schemes proposed by AT&T--one advertising its "go phone" and another with the old Cingular slogan "more bars in more places" that AT&T recently brought back--were rejected by NASCAR. The Go Phone scheme had been used in the past.[39] NASCAR later denied these claims.[40]

The car remained bare on race night on August 25, although ESPN aired the AT&T logo during shots from its in-car camera. Fox Sports had done so earlier in the dispute, with the words "Cingular is the new AT&T" on-screen during these shots.

On September 7, 2007, a settlement was reached where AT&T Mobility could remain on the #31 car until the end of 2008, but the associate sponsorship of the #29 Nationwide Series Holiday Inn Chevroletis not affected because they are in lower series.[41]

Richard Childress Racing announced the AT&T Mobility sponsorship will move to Grand American Road Racing Association sportscar racing in 2009 with the sponsorship of the Childress-Howard Motorsports #4 AT&T Pontiac Daytona Prototype sportscar. Childress is a part-owner of this team.

Competitors

AT&T is the top carrier based on United States customer totals. Its competitors are (in order of United States customer totals):

References

  1. ↑ Wireless from AT&T at a Glance | Wireless from AT&T, formerly Cingular
  2. ↑ Some ads use the phrase "wireless from AT&T" to eliminate ambiguity with other AT&T divisions.
  3. ↑ "Verizon Wireless Reports Solid 2Q 2008 Growth Of 1.5 Million New Customers". Verizon Wireless. Retrieved on 2008-07-22.
  4. ↑ [1]
  5. ↑ "Cingular is now the new AT&T." AT&T press release. January 12, 2007.
  6. ↑ DeKok, David (2006-01-11), "Employees at Cingular join union, get contract.", The Patriot-News (Harrisburg, Pennsylvania: Knight-Ridder/Tribune Business News), http://www.accessmylibrary.com/coms2/summary_0286-12292441_ITM 
  7. ↑ Communication Workers of America, AT&T Mobility/Cingular section.
  8. ↑ CINGULAR WIRELESS LLC Annual Report 10-K, 2004
  9. ↑ AT&T’s Sigman to Retire; de la Vega to Lead Wireless Unit; Stankey to Lead Telecom Operations : CEOWORLD.BIZ
  10. ↑ PA Bulletin, Doc. No. 06-1740
  11. ↑ Caribbean Net News "Digicel to acquire Cingular's Caribbean wireless operations", June 23, 2005
  12. ↑ Caribbean Net News "Cingular denies leaving Caribbean because of losses or poor performance", June 23, 2005
  13. ↑ Caribbean Net News "Digicel awaits regulatory approval from Caribbean territories", June
  14. ↑ Caribbean Net News "Digicel officially takes over Cingular in Barbados", December 21, 2005
  15. ↑ Cingular services up in air / Customers await effects of merger with AT&T Wireless
  16. ↑ Sprint press release
  17. ↑ AT&T Will Soon Boost Upstream Wireless Speeds - HSUPA deployment set for October or November... - dslreports.com
  18. ↑ Redherring.com
  19. ↑ AT&T Press Release
  20. ↑ New York Times Article on Approved BellSouth merger
  21. ↑ AT&T Prepares to ‘De-Brand’ the Cingular Wireless Name
  22. ↑ Palm - Support - Product Update 2.11 for Palm Treo 680 smartphone for AT&T
  23. ↑ AT&T Completes Acquisition of Dobson Communications to Enhance Wireless Coverage Company press release, retrieved November 16, 2007
  24. ↑ AT&T to buy Centennial for $944 million News article, retrieved November 7, 2008
  25. ↑ AT&T Wireless - About
  26. ↑ "Best cell service", Consumer Reports, Consumers Union of U.S. (January 2007). Retrieved on 2007-03-13. 
  27. ↑ Mohl, Bruce (2006-04-23). "The fewest dropped calls", Boston Globe, The New York Times Company. Retrieved on 2006-04-27. 
  28. ↑ Belson, Ken (2006-05-03). "Best Cellphone Company? All of Them, to Hear Them Say It", The New York Times, The New York Times Company. 
  29. ↑ AT&T: 'More Bars in More Places' is the New 'Fewest Dropped Calls' | Epicenter from Wired.com
  30. ↑ Ho, David (2007-08-25). "A 300-page iPhone bill? Too much information, users say". Atlanta Journal-Constitution. Cox Newspapers. Retrieved on 2007-08-19. "Internet message boards and blogs are buzzing with talk of paper iPhone bills dozens and even hundreds of pages long."
  31. ↑ http://money.aol.com/news/articles/_a/iphone-frenzy-not-an-option-for-some/n20070629193909990004
  32. ↑ Keizer, Gregg (2007-08-16). "A 300-page iPhone Bill? : iPhone owners rail at AT&T for paper waste with overly detailed bills.". Computerworld. PC World Communications. Retrieved on 2007-08-19. "One blogger, in fact, is in the middle of her 15 minutes of fame after posting a video that shows her unwrapping a 300-page AT&T bill."
  33. ↑ Graham, Jefferson (2007-08-25). "How many trees did your iPhone bill kill?". USA Today. Gannett. Retrieved on 2007-08-19. "Justine Ezarik, a Pittsburgh graphic designer and active Internet blogger, got her first bill on Saturday. She says it was so huge — 300 pages — it was delivered in a box."
  34. ↑ http://www.nascar.com/2007/news/headlines/cup/05/18/att.wins.lawsuit.ap/index.html
  35. ↑ http://www.nascar.com/2007/news/headlines/cup/05/19/nascar.loses.stay.att.ap/index.html
  36. ↑ http://www.nascar.com/2007/news/headlines/cup/06/17/nascar.sues.att.ap/index.html
  37. ↑ Appeals court sides with NASCAR in AT&T dispute NASCAR - August 13, 2007.
  38. ↑ As the logo turns: Burton's car missing AT&T again ESPN.
  39. ↑ NASCAR rejects proposed paint schemes for No. 31
  40. ↑ NASCAR losing patience with AT&T court battle ESPN.
  41. ↑ http://hosted.ap.org/dynamic/stories/C/CAR_NASCAR_ATT?SITE=GENERIC&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2007-09-07-14-41-18

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