Cingular Wins bid for AT&T Wireless
Newer Guy writes "Cingular has won the bidding war for AT&T Wireless with an offer of $15 a share, or about $40.5 billion." This means Vodafone is out, and the number of competitors for wireless devices in the US is down by one.
that I'm canceling my AT&T wireless phone as of today.
the number of competitors would still be reduced by one. Vodafone is a major player in Verizon Wireless.
Less carriers means less competition means higher prices.
In the end, it's the consumers who will lose out with this consolidation of mobile providers.
I have been pwned because my
Beings aspergers AND pulling chicks... I enjoy the challenge!
The mobile phone industry is one industry that could actually benefit from consolidation. Running redundant networks with redundant cell towers is very expensive. 3-4 major players should provide enough competition to keep prices down.
I've been a customer of AT&T Wireless for about five years. Up until about a year ago, I never had a complaint about them and thought that they were a pretty tight service.
Then I moved and they renewed my contract without telling me. I didn't know until the end of the year when I called to renew and get a deal and found out that I wasn't up for renewal for another five months.
Over the course of the past year, my bill has been incorrect on three different occasions, two of them, I just paid because I had absolutely no desire to deal with the customer service team. Long hold tiimes, RUUUUUUDE people and some of the worst double-talk about their policies.
I just thought it was interesting how they started to go down the tubes and now this. I'm not saying that one less competitor is a good thing, but AT&T wireless customers really don't have anything to lose here. It can't get much worse...
albeit at frequencies incompatible with most of the rest of the world.
"I'd rather be a lightning rod than a seismometer." -Ken Kesey
Can you hear me now...
(wait for it)
(wait for it)
NO CARRIER.
SHIT!
/^[A-Z0-9._%+-]+@[A-Z0-9.-]+\.[A-Z]{2,4}$/i
Beings aspergers AND pulling chicks... I enjoy the challenge!
And I have to say that they've been nothing but courteous and respectful on the phone with me. They've even taken off $200+ long distance fees, and given me some extra perks(Free 2mb internet downloads/month).
horrid coverage reputation? odd, i've never heard of it. care to elaborate?
It's the "I can tell Vodaphone to swallow my balls now" plan.
Until Slashdot fixes the funny modifier, use insightful or interesting. The poster knows your intentions.
Which provider were you with again? The phone I was looking at had a built-in camera, but nothing as extravagant as a cocksucking device and an espresso machine. Wow. Just... Wow.
What happens to the regional AT&T Networks? In the South East, there is a company owned by Triton Communications called SunCom, and they PROUDLY state, everywhere that they are part of the AT&T network. Website Just look at their logo! I wonder what this means for companies like them? Will AT&T Wirless be mirged out of existence?
--sig fault--
..
A lot of relieved Vodafone investors then -- or potential investors for that matter -- who it seems didn't have much confidence in the ATT buyout.
Now, next try for Vodaphone: Vivendi.
Why gripe about a reduction in the number of wireless providers, when the last mile of copper is still a legal monopoly?
Every wonder why wireless phone service is becoming cheaper than wired? Ever wonder why your wired service is a few decades behind in technology?
Ever wonder why you can get a broadband cell phone set up immediately, but you often have to wait a month for DSL installation?
Say what you want about the wireless market, it will soon offer better services at cheaper prices than wire. And the difference isn't technology, it's regulation.... it's the legislated monopoly that claims to protect consumers. But nowadays, poor folks who talk a lot are using wireless phones, because it's cheaper.
Is it inherently a bad thing to have one less competitor? Isn't competition supposed to only be the path towards customer satisfaction? In the world of wireless, where the end is good coverage, an excellent infrastructure, and flexible plans, as long as competition fosters these things it's good to have one more carrier in the fray. However, AT&T has arguably the worst network and worst coverage of any provider. Having them swallowed into a much larger network with much broader coverage is not inherently a bad thing.
This is not to debate the merits of Cingular's network or to compare their coverage or plans with Verizon, T-mobile, or Sprint's--this is simply to say that beleagured AT&T customers serve to gain from the acquisition.
I'm a friend of a friend of the working class.
... rallied after it was announced that they had lost the bid for purchase of that ATT segment to Cingular.
A lot of relieved Vodafone investors (or potential investors for that matter) then who it seems didn't have much confidence in the ATT buyout.
Now, next try for Vodaphone: Vivendi.
Creeping toward monopoly, or only a (smaller) handful of key players in the mobile phone market might not be so bad in terms of quality of service. For some markets consumers benefit from conglomeration of resources. Think about long distance service. There are 3 major players and a handful of tiny players. I don't feel particularly ripped off on my long distance service. If there were 45 different long distance companies, then they would all be charging each other fees to go from network to network, there would be incompatibility problems which would cause decreased quality and also slower adaptation of new technology.
:-)
Don't get me wrong, the reason it's like this is because the government doesn't step in and regulate the industry as much as it "should". If we were magically fully utilizing all of the state of the art fiber optic line that we had in the ground and it was all seamlessly available on the free market for any provider to rent at a standardized price, then having 100 bandwidth/long-distance companies would indeed be a good thing for consumers.
But like the wording of my example might suggest, I don't think it would be possible for the technology to stay state of the art AND fully regulated at the physical layer even if the government wanted to. Governments are (reasonably...) good at taking something economically tangible, like value-units of food or healthcare, and distributing it pretty much fairly (not that they always do this, but if they do then they are capable of succeeding).
But even if the US government regulated the network, and had a board of domain experts constantly auditing the state of the system, the fact of the matter is they would not have the motivation to maintain a state of the art network to support bandwidth and voice. Greedy corporations are good for that.
And 100 greedy corporations would never be able to interoperate and also provide state of the art and fairly priced services.
Lawrence Lessig, are you reading this? Set me straight!!
You Now what, customers are gonna pick up the bill. That's right. Here in Europe everybody got frenzy when the governments put teh 3G licenses on auction. Well all our operators forked out Billion$. How are they paying for it? Well we are! Altough there are ever more susbcribers to their service prices have not come down. Forget about the whole economies of scale and inversed moores law for telecommunication prices. We have kept a steady Price tag. Every time we text we have to pay roughly 20 Us cents for a 160 caracter SMS! Beter yet whenever we travel abroad (to another EU country) we end up paying calls for about 1.2$ per minute. That's for inbound calls too. I'm sick of it and have decided to ease off on my phone. Email is massively back in my live. Welcome to the club America
Artificial intelligence is no match for natural stupidity
Let`s just get these out of the way now...
"I for one welcome our new Singular overlords!"
"Ein Volk, Ein Reich, Ein Netwerk!"
and wait for it...
"All your network are belong belong to us!"
davejenkins.com |
I tried to buy a phone and service from AT&T Wireless last November, only to find that their store literally was incapable of selling me one because "their computers were down." This was the case for days. I've seen postings online by their employees detailing what a mess their internal systems are. Hopefully Cingular knows what they are getting into in terms of merging their operations.
Also it's important to remember here that AT&T Wireless hasn't been a part of AT&T proper since 2001. They are a separate company with rights to the name and logo.
The rant you make has nothing to do with GSM. You can get feature-laden phones for other services too.
And besides that, if you don't want to use those phones, don't. Sure, it's getting harder to find phones that are just basic phones, but if the freebie phone you get with your service contract also happens to have a camera that you never use, who gives a damn? If it comes in handy, you'll have it and if it doesn't, you'll ignore it. No loss either way and no hardship on your part.
And further, what does this have to do the overabundance of people driving SUVs and not paying attention to the road? Or with talking on cell phones while driving? Get a grip or get a hug as someone else suggested.
-N
I've nothing to say here...
I have heard various "learned" sources state that there is little point in having more than 3 serious competitors in any market.
4 7255,00 .asp
Fishing around on the web for a synopsis of this theory, I came across this:
"So why three? The authors contend that markets are inherently efficient, and three competitors is the best number to promote and sustain that efficiency. Having two companies will lead either to monopoly pricing or to the two destroying each other, and more than three leads to overcapacity and perpetual price wars.
Thus, when faced with three established competitors in a field, you want to think long and hard about whether you're willing to spend the money to knock one of them off. Consider instead becoming a product specialist ("We make the world's best X") or a niche player ("We only serve the Y market"). Trying to force your way in either by taking on a market leader directly or by expanding outside of your niche just doesn't seem to be a wise use of resources, according to the research."
The source of this article can be found here:
http://www.cioinsight.com/article2/0,3959,
I knew. They were advertising the same features I'd enjoyed on my Voicestream/TMobile service for years, included in normal service.
-N
I've nothing to say here...
> Beter yet whenever we travel abroad (to another EU country) we end up paying calls for about 1.2$ per minute.
I really hope that the European Commission cracks down on the operators over this. They need to get their act together. The whole mobile roaming thing is a serious impediment to the principle of freedom of movement in the E.U. In fact, I suspect that because of this it's only a matter of time before they do force the operators' hands.
I mean for crying out loud, I have to roam even whilst travelling elsewhere in Ireland. (N.I. is U.K. networks). Yet Vodafone and O2 are two major networks both sides of the border. Can ANY valid reason be offered for higher roaming (heck, ANY roaming) charges in the case of ROI/NI cross-over?
Even if there is higher costs involved, they could have roaming charges DOUBLE the normal charges and STILL be a fraction of what current roaming charges are.
GRRRR. Gnarg. BLEAH. Rant, rave, etc... Just don't get me started on BANKING whilst in other E.U. States - it's mental (and expensive) DESPITE the Eurozone!
-- *~()____) This message will self-destruct in 5 seconds...
Who know after three months of pumping up this m-life that it was for a mobile phone plan.
I remember the billboard with an 8-year-old girl, thinking "what's an mlife, and how do I get one?" The answer, Virginia, is that nobody really knows, but it costs about $40 billion.
Those mlife ads always gave me the creeps, anyway. There was always something a little too close to a religious overtone to them... they looked like they were designed by the same folks who put together a local megachurch's billboard campaign. Kinda like "contemporary Christian" music is disturbingly similar to pop music, with "Jesus" in the place of "Baby".
Gives me the creeps. Just give me that old time religion... it's good enough for me!
Stressed? Me? Of course not. Stress is what a rubber band feels before it breaks, silly.
Perhaps this means that all of those AT&T Wireless customers (I was one - no longer am) will now get better service, both customer service and carrier service. Billing problems aside, trying to get ahold of the person in the current AT&T Customer Service to deal with a problem with either your phone or your bill is ridiculous. The Cingular people will likely do a MUCH better job than the behemoth that is AT&T. As far as coverage, AT&T coverage was great when I had it, but it was definitely oversubscribed. With the addition of Cingular towers to the equation, perhaps AT&T's customers will see some relief soon in major metropolitan areas.
I switched from Cingular to Verizon some months back, and pay MORE for the "same service" under Verizon. Except I'm getting tons more service, the dead spots are almost non existant, and when they are, it's usually only for the span of 100 yards or so, not miles like Cingular.
Also, Cingular screwed up my billing on almost a monthly basis. They kept claiming that I was delinquent on my payments, only my payments go out automatically 5 days in advance (I never incurred extra charges, so it was a flat fee every month). I know they got the payments on time, but they'd feed me the "You have to allow us 5 business days to process your payment" BS. My bill is paid the day you receive the check, not the day you get around to telling your computer system that it's paid. Heck, they cash the checks before they enter them in to their system, all of my checks were cashed 1-2 days before the due date, but they still told me I was delinquent.
I'd call every month, and every month, they'd take off the late fees when I complained about it, but do you know how old this gets? Every single month calling them to get them to correct their errors. I switched off of them and evaluated AT&T and Verizon as potential new service providers, and decided on Verizon only because of the glowing testimony given by a coworker, who also lent me his phone for a day so I could check to see if those dead spots (eg, my house and my work) in Cingular's network were there for Verizon, when they were non existant under Verizon.
If I had switched instead to AT&T, I'd be canceling my service right away even if it meant I had to suck down the early termination fee.
Slay a dragon... over lunch!
Close, all three have their own towers. About 6 months to a year ago they all signed agreements letting their subscribers use the towers of one of the other 2 companies (Cingular, TMobile, AT&T).
Cingular has the largest GSM network, or did last I looked, if I'm not mistaken... followed by TMobile and then AT&T.
AT&T Wireless has never been a massive monopoly or even part of one. AT&T used to be an independent cellular carrier (McCaw Cellular Communications) competing with the AT&T-owned Bell carriers. After the AT&T breakup, AT&T bought McCaw. It was demerged in 2001, and the name really is the only part that has anything to do with old monopolies.
You are not alone. This is not normal. None of this is normal.
Is SBC just determined to piece together what the courts broke up twenty years ago?
"Map depicts an approximation of outdoor coverage." As a current Cingular customer, I can attest to the fact that it's a *WILD* approximation - their coverage actually sucks. I've been in several major metro areas where I could get *no* signal, while my Verizon-using counterparts were okay.
THINK
I go from the company with the absolute worst customer service in the world to the company with the absolute second worst customer service in the world, who just inherited the title of "worst" as the worst is now gone....
Not to, uh, sound selfish or anything, but who were you thinking of going with next?
Yell & scream & rant & rave... it's no use... you need a shaaaave ~ Bugs Bunny
I'd like to know if Rogers AT&T Wireless will see any benefits from this purchase... We need better rates and better service in Canada. Maybe this union will trickle down *shrug*
I know from all of the Cingular commercials I hear that Cingular is a small little company against the big behemoths, right? They aren't some big, huge wireless provider, the commercials say they are like a little adept startup. Commercials wouldn't lie would they?
XML is like violence. If it doesn't solve the problem, use more.
Its a good thing I only opted for a one-year contract with AT&T Wireless when I switched from Cingular back in November. There is no way I'll resubscribe this year with the merged entity unless the FCC forces SBC to spin off Cingular (doubtful). I do not want to be forced into signing up for a residential landline with SBC just as they do with DSL. My rule of thumb is I do not do any business with SBC and I don't intend to break this now. I don't reward shoddy service providers like SBC.
"Right now, somewhere in this world, Scott Baio is plowing a woman he doesn't love," - Peter Griffin, *Family Guy*
AFAIK the SIM card is a proprietary feature of the GSM cellular transmission method. T-Mobile and Cingular are American GSM carriers. Then you have CDMA carriers like VerizonWireless and Sprint PCS. As for AT&T Wireless I thought that they were still operating on the TDMA cellular transmission method. If so, then the SIM card wouldn't be an option.
I turned down a job with those ATTWS clowns back in Feb. It just didn't feel right.
The worst part? As I interviewed numerous architects and asked the question "What do you worry about most?" EVERYONE said "more layoffs".
Those were mainly sr. contributors with 7+ years experience in the company. Normally, I'd expect concerns about not meeting schedule, etc.
Also amusing was that nobody knew (including the managers) who 'owned' system performance. These clowns had tens of millions of HP servers running customer service and they didn't even have a performance manager, strategy, etc.
And then they wondered why the system collapsed during the number portability fiasco.
Good luck to everyone at ATTWS.
Oh yeah.. They were also cheap bastards. The funny thing.. During the week of the interview I was staying in a $2M condo at Whistler that was owned by a VP at ATTWS.. I can assure you that those guys are doing Just Fine no matter how much they pressure their 'lackies'.
*heh* That's really funny, because I've got an AT&T cell phone, and it indeed does exactly that. I can always tell I'm getting a call three seconds before my phone actually rings.
Suncom (as most AT&T networks) is GSM - there are some networks within both Cingular and AT&T that are NOT GSM. I believe the Florida market (around Jacksonville) has a non SIM card TDMA Cingular network - I think areas of Tennessee may have the same for Cingular.
Yell & scream & rant & rave... it's no use... you need a shaaaave ~ Bugs Bunny
If you have AT&T Wireless, get out NOW. Cingular has the most awful, broken billing system ever. They will shut down your account if your bill is one day late and charge you an activation fee to turn it back on. Their highest national plan still does not give you anywhere near unlimited national service. Not to mention it takes them about a day to get a phone activated right. Unfortunately, AT&T Wireless, one of the better (but still not good compared to what Asia has) wireless providers will most likely cease to exist as we know it. This can be a really good thing for Cingular, as they were the most logical buyer, but they will likely botch this. I have AT&T Wireless; as soon as I saw they were up for sale I started looking for another provider and am now in the switch process. Good luck.
I am feeling fat and sassy
"SBC Communications Inc. owns 60 percent of Cingular, while BellSouth owns 40 percent."
Come play Moral Decay!
Your complaint about Cingular's billing system may be legit but if ATT's is better why do you assume they would get rid of ATT's and not Cingular's?
I switched from Cingular to ATT because when I drove from California to Florida in 2001 there were few places along the way that had Cingular's service. With ATT phone towers and customers added to Cingular, they will probably become the wireless service with the largest and most access points without the "extended range" or other obnoxious status messages that mean more money.
I did like the memory chip in Cingular's phones which I had to give up when switching to ATT but perhaps I will regain that with this merger.
In the mean time I have an offer from ATT on my desk to get $50 credit on my bill if I sign up for a new annual service. Don't know if I would lose the ability of having the roll-over minutes that Cingualr has, a feature I look forward to as I don't use my phone that much.
Each competitor would one-up the other and would then become the flavor of the month. For us it was Aerial (which begat VoiceStream, which un turn begat T-Mobile). CSR's would flock to the competitor and take all of their acquired knowledge. The holes for our company were so bad at one point we resorted to exclusively hiring temps. Talk about a drop in knowledge!
I would be surprised if hardly any of these companies had typically outstanding CSR's. With industry turnover rates and outsourcing concerns it's unfortuntaly the lay of the land.
That's why if I have an imporant question or concern I call in about 2-3 times. That way I have an average answer that might be a little more correct than if I just called in once. Sad, but true...
" I bet we see Vodaphone or Verizon grab T-Mobile now. "
Wrong technologies. Verizon Wireless would more likely grab Sprint - which uses the same carrier technology. Its also one of the reasons Sprint's stock raised on the news of the AT&T merger - rampant speculation that they would be "plan B".
GPL'd web-based tradewars themed space game
If it reduces the number of kiosks at the mall trying to give me four free phones, I'm all for it.
Nearly two years ago I was with Cingular. Roughly half way into my one year contract with them, my nokia phone, "died" (for lack of a better term). I really never cared becuase I had two phones on the plan, the other being an Erikson model. Roughly two months after this incident, my erikson model "died" (the other end could not hear me when i called out on the phone). So, I traveled down to my nearest cingular office (not one of those small, teenage staffed joints), but one of their corporate offices here in central new york. I informed a representitive of what had happened, and as politely as possible she informed me that there was nothing she could do for me, and I would have to continue paying my phone bill for the last 3 months of my contract (for phones that no longer work). I then reluctantly asked if i could pay a penalty fee and switch phones, or exchange the non working ones for at least one new phone that would work. The representivie informed me that I was not allowed to do this until my contract expired. Well, to sum up what happened, I still owe three months of service to Cingular, but like hell will they ever see one penny from me. They did not provide me with a service for my remaining three months, considering I was never able to use it. Cingluar is bad news. I'm now with Cricket Wireless (yeah i know.. not the best choice.. but the coverage on my phone suits me everywhere I venture, and unlimited service for $29.99/month is'nt bad.) I will never go back to Cingular, ever.
AT&T's TDMA network had great nationwide coverage, and they were the first major provider to offer a nationwide no-roaming plan. My understanding is that their GSM network isn't nearly as good yet.
Vodafone (which is a major provider in Europe, where everyone is GSM) is also a major shareholder in Verizon, which uses CDMA.
Here's the list of the major providers and their network types:
AT&T TDMA-->GSM Cingular TDMA-->GSM Verizon CDMA Sprint CDMA T-Mobile GSM Nextel iDEN Alltel CDMA US Cellular CDMAAT&T sold off their cable TV and cable Internet to Comcast. Now they sold off their Wireless branch to Cingular. What do they have left, long distance plans?
Why would they leave themselves with only the things from the past that are likely to die out eventually, and ditch the new technologies?
no comment
All posters that complain about coverage:
Your complaints are meaningless unless you specify the area in which you live. Saying "my coverage sucks" is uninformative and holds no weight.
I live in the metro NY area and my AT&T connection is average. Compared to the Sprint coverage, it seems to better, but my friends and family prefer Verizon and/or T-Mobile over both.
100% Insightful
Not less carriers, fewer carriers. "Fewer" is used for quantities, "less" is used for measurements. "Add less flour, make fewer cookies."
(Grumble grumble pet peeve etc.)
Editor Emeritus and Senior Writer, TeleRead.org
I have my phone, long distance, DSL, and wireless with Verizon (that's one big bill).
For a while every time I sent them a payment they'd send me a check back for the same amount a couple of weeks later, along with a delinquient bill. Apparently they were crediting my payments to an old closed-out account I used to have a few months prior (funny - they accepted the first few payments just fine). They DID NOT return MY check (as if it had bounced or something) - they cashed my check and wrote me back a check of their own for the same amount. I guess the post office didn't complain (two people paying 37 cents each way to send the same money back and forth to each other). And yes - my NEW phone/account number was on my checks.
So, I went with automated credit-card billing. I figured that if I just give them a blank-check to take money from me they might just feel like taking money from me (as opposed to taking it and sending it back).
You can imagine my surprise when after getting the notice that I can stop paying my bill my next bill indicates that they charged my credit card about $3 and the rest is past-due. How do you end up with a past-due balance on an auto-pay account? Apparently when I had called to complain a few months prior about the delinquent bills that they didn't accept payment for they had put some sort of freeze on my balance so the credit-card routine wasn't charging me for the full amount.
The good news is that the last few months have been smooth sailing - you apparently only have to hassle Verizon for 6 months or so before they figure things out. And fortuantely I don't need to apply for a mortgage anytime soon (I'm sure all the 1-month-behind payments don't look good).
That isn't half as good as my brother's attempt to get a line installed at his new home. They wanted a deposit since he didn't have phone service with them in the previous six months (which they would hang onto indefinitely - not credit to the first few bills). He pointed out that he managed to qualify for his new mortgage, the phone company shouldn't have trouble trusting him with a phone bill. The rep replied that the rules said that you needed a deposit - unless you could document that you were low-income and couldn't afford it. Gee, that makes sense - you need a deposit so they can be sure you'll be paying your bills unless you can prove that you can't afford to pay your bills.
Must be some regulation...
Please, let's face it, our mobile market is idiotic. Competition with utterly incompatible standards in a public utility service is BAD. Europe, with the roaming/sharing agreements between everyone is definitely preferable.
And before you say "but my service with vendor X is great," trust me, I have all the major vendors. Yes, I have a Verizon phone cause it has the best coverage. Yes, I have a TMobile phone, cause I need an overseas number. Yes, I have an ATT Blackberry, with phone service cause I need a link to corporate email. Yes, my wife had a Sprint phone, and let me tell you how utterly useless it was (so bad I couldn't believe they sold the service). And yes, between all of these, there are still areas where the service sucks. Verizon, the best of the bunch in the US, still is useless when I travel overseas, since they decided to deploy only CDMA technology, which is useless everywhere but maybe Canada. Let's hear it for free market chaos!
If you think about it, Cingular has lots of markets with just 1900Mhz spectrum (California comes to mind.) AT&T has lots of markets with 800Mhz spectrum (California comes to mind). With control of the old A-B band 800Mhz spectrum *and* a PCS 1900Mhz spectrum, Cingular's coverage is bound to just get better with the acquisition. There are plenty of spaces where Cingular has 800Mhz spectrum (i.e. Chicago) and AT&T has the PCS spectrum. From all the complaints I hear about Cingular in the Chicago area, coverage is just bound to get better.