Media reports are circulating that AT&T Wireless and Cingular Wireless are in merger talks for their USA based GSM networks. The merged network would become the country's largest, overtaking Verizon Wireless.
T-Mobile has also been reported to be interested in a merger, although talks with Cingular, owned by SBC and BellSouth are said to be far more advanced. Vodafone has also on several occasions been rumoured to be considering selling its 45% stake in Verizon and buying a GSM operator to more closely fit with its global coverage. AT&T Wireless was considered the only viable target due to it being directly listed on a stock market as opposed to being owned by a parent as is the case with T-Mobile and Cingular.
The merged Cingular and AT&T Wireless would have around 45 million customers, overtaking current market leader Verizon Wireless, which had about 36 million customers at the end of the third quarter of last year.
As of last October, SBC and BellSouth had about $10 billion in cash and cash equivalents on their balance sheets. With a probable price for AT&T Wireless of US$25 billion or more, the bidders would have to raise significant debt levels. However that does appear to be easily within the company's capabilities.
Japan's NTT Docomo owns 16% of AT&T Wireless."
Posted to the site on 16th January 2004
Posted to: www.cellular-news.com/story/10439.php