AT&T to re-enter the wireless market

AT&T Chairman and CEO David W. Dorman said the company intends to widen availability of its wireless service later this year by aggressively adding the service to the company's other popular consumer bundles of communications products. Among them: the AT&T OneRate local and long-distance plans, and AT&T's CallVantage Voice over Internet Protocol (VoIP) service that is delivered over broadband connections. What's more, as integration of wireless handsets with WiFi networks improves over the next 18 months, AT&T plans to offer handsets that also allow customers to make VoIP calls over broadband connections in homes and businesses. AT&T's wireless service also will be offered to enterprise, small and medium business customers. With a large base of customers and expertise in selling new products, AT&T is excited about the opportunities that this agreement presents.

No financial terms of the deal were disclosed.

"The MVNO model has achieved great success in Europe and is showing promise in the U.S. when executed with the right strategy," said Dorman. "AT&T plans to take that experience to a new level by giving customers innovative ways to integrate wireless into all of their communication needs. Residential, small business and enterprise customers can anticipate a wide array of choices -- whether as a casual talker who wants a mobile phone for safety or a road warrior whose business depends on it."

Dorman said AT&T is confident in its ability to offer AT&T branded wireless services for several reasons. Although the wireless industry is competitive, demand for wireless voice and data service continues to grow. Also, recently introduced local number portability rules that let customers take their wireless phone numbers with them when they switch carriers mean that carriers who market successfully face fewer barriers to taking market share.

Dorman added that the MVNO model allows AT&T to re-enter the market without incurring significant capital spending costs. AT&T also hopes to benefit from its scale and streamlined internal systems, as well as its status as one of the world's most recognizable companies.

{Cellular News}