Round Table


“This merger shouldn’t raise prices. Since AT&T wasn’t a low-price leader this should not have an impact on prices. But after the wave of mergers is complete, I think we’ll see a more intelligent approach to pricing which means the carriers might not be giving away the store in free minutes anymore.”

- Analyst Jeff Kagan

“The primary winners are wireless investors. The deal will help ease the competitive pressures in the wireless industry, making it a more profitable segment. As the first major consolidation in recent years, this deal will not raise any anticompetitive concerns. Although $41 billion (plus debt, for a total of $47 billion) is a significant price, the cost of not winning would have been higher - for Cingular and the industry overall.”
-Yankee Group analyst Roger Entner

“In the same breath that the Bells are whining that they cannot afford to deploy broadband without regulatory relief, they’ve amassed $41 billion in cash and chose to purchase a wireless company. Obviously, the Bells do not lack the cash to invest in broadband, but they do lack the credibility to be believed.”
- AT&T General Counsel Jim Cicconi

“This combination is expected to create customer benefits and growth prospects neither company could have achieved on its own and will mean better coverage, improved reliability, enhanced call quality and a wide array of new and innovative services for consumers.”
- Cingular Wireless President and CEO Stan Sigman

“Cingular and AT&T Wireless customers should expect some delays in coverage and service issues during the [merger] of operations. But they should also expect overall better coverage by mid-2005 and 5 percent to 10 percent annual price reductions in mobile voice services through 2007. Other carriers, particularly Verizon Wireless, will likely pick up subscribers, as Cingular and AT&T Wireless form a new management and operational structure.”
- Gartner analysts

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