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Previews GoPhone offer and announces agreements with Sprint, Bechtel, Dell, and IBM for the coming year
January 28, 2003
NEW YORK -- At its annual conference here with financial analysts, AT&T Wireless (NYSE:AWE) today announced its fourth-quarter 2002 earnings, provided its 2003 outlook, and outlined the actions it will take to meet its goals for this year and beyond. These actions include, among many others: an upcoming offer called GoPhone targeted to new sets of customers; a tower cost-sharing arrangement with Sprint to help lower capital expenditures; an agreement with Bechtel to lower costs of network expansion; a distribution agreement with Dell; and a strategic relationship with IBM to create integrated wireless solutions for mobile professionals. The company also said it is entering the Wi-Fi business with AT&T Wireless GoPort (SM), a high-speed wireless data service available in major airports and hotels. "We enter 2003 with a three-year record of solid, dependable financial results and fresh from deploying our next-generation network throughout our core footprint," said John D. Zeglis, chairman and CEO of AT&T Wireless. "We are using that network as the stage on which to premier the industry's richest array of wireless data offers for consumers and businesses. "AT&T Wireless achieved its results in a challenging economic environment, where it seems all but forgotten that wireless is still an industry with significant new opportunities for growth. Just over 50 percent of America uses wireless, but the other 50 percent remains to be converted -- no small opportunity. What's more, the growth of wireless usage continues unabated, making up about 15 percent of all calling, with 85 percent of the opportunity still ahead of us. "To reach our goals, we will introduce new ways of marketing and distributing our products to current and prospective customers, seize opportunities in wireless data, pursue and deploy global-standard-technology, and continue to operate a high-performing, low-cost network. "Aggressively pursuing revenue-growth opportunities, especially breaking into the next 50 percent of the market, will help get us to an important destination in our journey, namely, positive free cash flow," Zeglis said. "We will focus more intensely than ever on operational excellence in order to reach positive free cash flow," said Michael Keith, president of the company's mobility operations. "This means, among other things, lowering our costs of acquiring and retaining customers, using our capital dollars efficiently across our TDMA and GSM/GPRS networks, and investing in our information technology systems so they become a strategic asset that differentiates our services and reduces our cost structure." In a separate release: NEW YORK -- AT&T Wireless (NYSE:AWE) today announced an agreement with Bechtel that establishes firm pricing for all phases of cell-site development, allowing the companies to better manage costs and reduce build cycle times associated with network expansion. The agreement also limits any additional costs for network build out to pre-approved expenses specified in the agreement. AT&T Wireless said the agreement supports its goals of reducing capital spending and becoming free cash flow positive. "We'll be able to expand and enhance our network faster and at lower cost, bringing our high quality voice and data services to more customers sooner," said Greg Slemons, AT&T Wireless executive vice president-network services. "Bechtel has committed itself to bringing down AT&T Wireless' network costs in all phases of cell site realization and deployment," said George Conniff, president, Bechtel Telecommunications. "This agreement will help us bring sites on-line faster, without sacrificing one iota of the high quality work we've been delivering to AT&T Wireless for three years." Financial details of the agreement were not disclosed. In a separate release: AUSTIN, Texas & REDMOND, Wash. -- Dell (Nasdaq:DELL) and AT&T Wireless (NYSE:AWE) today announced a strategic relationship to provide mobile professionals in the United States with wireless connectivity for their notebook computers via AT&T Wireless high-speed GSM(TM)/GPRS wireless data service. The two companies also said that they would collaborate on other wireless initiatives throughout 2003. The new relationship is aimed at dramatically simplifying the way customers acquire the mobile computing capabilities that provide them greater flexibility and productivity, executives from both companies said. When available this spring, customers will be able to purchase the necessary modem and software package and register for a subscription for the wide area network (WAN) wireless service through Dell. "Dell's leadership in computing and distribution, coupled with our prowess in the wireless data arena, will create the kind of solutions that today's CIO's are demanding for their mobile professionals," said Andre Dahan, president of AT&T Wireless Mobile Multimedia Services. "Together, we will give our customers the freedom to untether from their desks while maintaining the ability to stay connected to their vital corporate information." Additional details about the agreement were not disclosed. Information regarding the availability and pricing of solutions will be announced at a later date. In a separate release: REDMOND, Wash. & OVERLAND PARK, Kan. -- AT&T Wireless (NYSE:AWE) and Sprint (NYSE:FON) (NYSE:PCS) today announced they have signed an agreement through which they will cooperate in the construction of new wireless towers. The agreement will enable the companies to reduce the number of towers they build and the capital expenditures associated with this activity. As such, they plan to expand and enhance their wireless footprints throughout the United States faster and at lower cost. AT&T Wireless and Sprint lead the wireless industry in the number of towers they operate. "This agreement represents a small but important first step for our companies, and potentially, for the wireless industry," said Greg Slemons, executive vice president of Network Services at AT&T Wireless. "Our industry has entered a new phase in its development that calls for creative new solutions that let us do more with less. With this agreement, we expect to reduce capital expenses, accelerate our progress toward profitability, and more rapidly expand the reach and quality of our wireless networks." Under the terms of the agreement, the companies' Network Services groups will share information about their current tower inventories and future construction plans. They will then identify areas of overlap -- for example, a community in which both companies want to build a tower -- and decide which company will build and maintain the tower and which will co-locate its network facilities on it. This approach will reduce redundant construction, making it easier for both companies to serve the communities in which they want to add or expand wireless coverage. In addition to coordinating future tower construction activities, the companies will continue to cooperate on making the best use of their current tower inventories, including co-location when it is appropriate. AT&T Wireless and Sprint expect to begin implementing the agreement in the first quarter of 2003. Financial terms were not disclosed. AT&T Wireless Services Inc. Bechtel Telecommunications Dell Computer Corp. Sprint PCS
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