US Networks Sign GSM Roaming Agreement

The two USA based GSM networks, AT&T Wireless and Cingular Wireless have announced a national roaming agreement to enable their respective customers to roam onto the other partners network. The companies also said the agreement will allow them to lower costs.

"The real winners in this deal are the customers of Cingular and AT&T Wireless. Their coverage will expand, their phones and all the features will work the same - whether the customers are in Cingular or AT&T Wireless territory," said Stan Sigman, President and CEO of Cingular Wireless. "Furthermore, it helps both companies provide seamless service even as they continue to expand their GSM footprints. And at roaming rates significantly lower than previous agreements."

This agreement augments each company's aggressive GSM/GPRS build-out efforts. AT&T Wireless continues to expand its extensive GSM/GPRS network and said it plans to have covered POPs totaling about 206 million by mid-year and 214 million by year-end. AT&T Wireless currently offers GSM in all of its markets except for the former TeleCorp markets.

Cingular said that more than 90% of its POPs - and all of its major markets - will have GSM service by the end of the year. In addition, on March 13, the two companies completed the formation of a joint venture that will further extend network coverage by cost effectively building out GSM/GPRS service on more than 4,000 miles of rural highways throughout the U.S.

This agreement offers very attractive roaming rates to both carriers. AT&T Wireless and Cingular have also agreed that they will build out their networks to support common features such as SMS.

The agreement is retroactive to February 1, 2003 and will remain in effect until December 31, 2006.

The agreement is bound to further stimulate debate over a possible merger of the two companies in the near future, possibly also taking in Canada's troubled Microcell and the 34% owned AT&T Wireless associate, Rogers to create a large pan-American network."

Posted to the site on 18th March 2003