AT&T Wireless and T-Mobile USA Sign Roaming Agreement Significantly Expanding GSM/GPRS Footprint in U.S.Business Editors/High-Tech Writers BELLEVUE, Wash. & REDMOND, Wash.--(BUSINESS WIRE)--April 23, 2003 Companies Also Sign Co-location Agreement -- Reducing Operating Expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. and Speeding Network Buildout Driving the continued expansion of GSM/GPRS 1900 MHz (MegaHertZ) One million cycles per second. It is used to measure the transmission speed of electronic devices, including channels, buses and the computer's internal clock. A one-megahertz clock (1 MHz) means some number of bits (16, 32, 64, etc. wireless communication services in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , AT&T Wireless (NYSE NYSE See: New York Stock Exchange :AWE) and T-Mobile USA, Inc., a wholly-owned subsidiary of T-Mobile International, the mobile arm of Deutsche Telekom Deutsche Telekom AG (ISIN: DE0005557508, FWB: DTE, NYSE: DT, LSE: DEU, TYO: 9496 ) (abbreviated DTAG) is a telecommunications company headquartered in Bonn, Germany. It is the largest telecommunications company in Germany and in the EU. AG (NYSE:DT), today announced a joint roaming agreement, opening up significant new coverage territory for both companies. Also today, the companies announced an agreement encouraging inter-carrier co-location of network facilities by dramatically reducing cell tower co-location lease costs between the two companies. In addition to lowering costs, this agreement is expected to speed build-out of each company's advanced GSM/GPRS networks. For AT&T Wireless customers, the roaming agreement provides advanced 1900 voice and data service covering approximately 3,000 highway miles and 12.1 million potential customers in key markets including Minneapolis, MN; Atlantic City Atlantic City, city (1990 pop. 37,986), Atlantic co., SE N.J., an Atlantic resort and convention center; settled c.1790, inc. 1854. Situated on Absecon Island, a barrier island 10 mi (16. , NJ (including along the Atlantic City Expressway The Atlantic City Expressway (officially numbered, but unsigned, as Route 446) is a controlled-access toll road in New Jersey, managed and operated by the South Jersey Transportation Authority. ); Sarasota, FL; the Delaware/Maryland/Virginia Peninsula; along I-25 from Albuquerque, NM to El Paso El Paso (ĕl pă`sō), city (1990 pop. 515,342), seat of El Paso co., extreme W Tex., on the Rio Grande opposite Juárez, Mex.; inc. 1873. , Texas; and, along I-20 in Texas from Dallas to Abilene. For T-Mobile's customers, the agreement opens up advanced 1900 GSM/GPRS voice and data service in key markets and along more than 2,500 miles of Interstate highways, including AT&T Wireless' coverage along I-40 from the California border to Albuquerque, NM,; I-25 from Denver to Albuquerque; I-80 in Pennsylvania; and I-30 from Texarkana, Texas Texarkana, Texas is a municipal designation in Bowie County, Texas, United States which forms the western half of Texarkana. It is separated from Texarkana, Arkansas, by State Line Avenue. to Little Rock, AR. Markets include Little Rock; Green Bay and Madison, Wis.; Charlotte, Greensboro and Raleigh, NC; and Knoxville, Tenn. covering more than 10.9 million potential customers. Today's roaming agreement augments the two companies' aggressive build-out plans for next generation networks. "On the heels of our roaming agreements with Cingular and Edge Wireless, today's announcement lays another significant plank in the nation's growing GSM coverage map," said John Zeglis, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of AT&T Wireless. "T-Mobile was an early proponent of GSM, and we are glad to have them as a roaming partner. We're pleased to be able to leverage this additional coverage on behalf of our customers, while providing T-Mobile's customers access to our own next-generation GSM/GPRS highway network." "GSM is the world standard for wireless voice and data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. and we are delighted to have AT&T Wireless join us in establishing GSM as the emerging North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. standard as well," said Robert Dotson, CEO and President of T-Mobile USA, Inc. "This is yet another great opportunity for T-Mobile customers to GET MORE(R), allowing them to use GSM 1900 coverage in new territories throughout America while allowing both companies to rapidly and cost effectively build out a single GSM network in less populated areas of the country. We continue to pursue creative ways to expand our GSM 1900 footprint and drive it even further into rural markets." Financial terms of the agreements were not disclosed. The additional GSM/GPRS 1900 coverage provided by the roaming agreement is expected to be available this June for both companies' customers. AT&T Wireless and T-Mobile expect to begin implementing the reduced co-location rent agreement in the second quarter of 2003. About AT&T Wireless AT&T Wireless (NYSE:AWE) is the second-largest wireless carrier, based on revenues, in the United States. With 21.1 million subscribers as of March 31, 2003, and revenues of nearly $16.0 billion over the past 12 months, AT&T Wireless delivers advanced high-quality mobile wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. services, voice and data, to businesses and consumers, in the U.S. and internationally. For more information, please visit us at www.attwireless.com. This press release contains "forward-looking statements" which are based on management's beliefs as well as on a number of assumptions concerning future events made by management with information that is currently available to management. Forward-looking statements include, without limitation, management's expectations regarding: our future financial and operating performance and financial condition, including the company's outlook for the fiscal year 2003 and subsequent periods; subscriber growth; industry conditions; the strength of our balance sheet; our liquidity and needs for additional financing; and our ability to generate operating free cash flow. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside AT&T Wireless' control, that could cause actual results to differ materially from such statements. Without limitation these factors include: the risks associated with the implementation of our technology migration strategy, our ability to continue to reduce costs, the potential competitive impacts of industry consolidation or alternative technologies, potential impacts on revenue and ARPU (Average Revenue Per User) A calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average. from competitive pricing and slowing penetration in the wireless industry, the effects of vigorous competition in the markets in which we operate, the risk of decreased consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. due to softening economic conditions, the outbreak of war or acts of terrorism, and consumer response to new service offerings. For a more detailed description of the factors that could cause such a difference, please see AT&T Wireless' filings with the Securities and Exchange Commission, including the information under the heading "Additional Factors That May Affect Our Business, Future Operating Results and Financial Condition" and "Forward Looking Statements" in its annual report of Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed on March 25, 2003 About T-Mobile USA, Inc. Based in Bellevue, Wash., T-Mobile USA, Inc. is a member of the T-Mobile International group, the mobile telecommunications subsidiary of Deutsche Telekom AG (NYSE:DT). T-Mobile operates a national all digital voice and data network based on a single GSM/GPRS 1900 technology standard. In addition, T-Mobile operates the largest commercial Wi-Fi (802.11b) wireless broadband High-speed wireless transmission of data. What is "high" speed is always a changing number. Wireless systems are typically slower than land-based, wireline networks. In the past, wireless broadband started at 250 Kbps, whereas land-based broadband was generally considered to start at T1 (WLAN See wireless LAN. WLAN - wireless local area network ) network in the country, available in more than 2,300 public access locations including Starbucks coffeehouses, Borders Books and Music, airports and American Airlines American Airlines Major U.S. airline. American was created through a merger of several smaller U.S. airlines and incorporated in 1934. It continued to buy the routes of other airlines, becoming an international carrier in the 1970s; its routes include South America, the Admirals Clubs. T-Mobile is committed to providing the best value in wireless service through its GET MORE(R) promise to provide customers with more minutes, more features and more service than any other wireless provider. For more information, visit the company web site at www.t-mobile.com. This press release contains certain statements that are neither reported financial results nor other historical information. These statements are forward-looking statements within the meaning of the safe-harbor provisions of the U.S. federal securities laws. Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors that are beyond Deutsche Telekom's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators and other risk factors detailed in Deutsche Telekom's and T-Mobile USA's reports filed with the Securities and Exchange Commission (the "Commission"). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We do not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release. |
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