Thus begins the long overdue consolidation of the wireless telephony industry.
Overall, the acquisition of AT&T Wireless by Cingular Wireless is a good thing.
AT&T Wireless never did overcome the legacy of the chaos of the McCaw Cellular years, especially in its back-end systems. It has alienated its employees by layoffs and outsourcing IT jobs to India. Its customers, new and old, were getting fed up with cutbacks in analog and TDMA capacity, termination of CDPD services, and its overhyping of GSM coverage and capacity. In November 2003, AT&T Wireless was the only wireless telephony company that suffered significant problems implementing Wireless Number Portability (WNP).
AT&T Wireless had a promising "fixed wireless" broadand Internet access and telephony business in Project Angel (AT&T Wireless Broadband) that it inherited at the time of its spinout from AT&T. Once granted its freedom, AT&T Wireless waited a perfunctory few months and then terminated all Project Angel activities. It migrated customers to competitor's DSL and wireline voice services, and sold the Project Angel technology, where it's found new life after being adapted for use in overseas markets.
With the acquisition, Cingular inherits many, many technical headaches. Integration of back-end, roaming, and billing systems will be a monumental task. It faces ongoing challenges of consolidation of analog (still used extensively by, among other things, GM's OnStar systems), TDMA (used by both Cingular and AT&T Wireless), some use of CDMA, and consolidation into an all-GSM/GPRS system.
But, Cingular also inherits a bit of good news. AT&T Wireless (was) one of the principals of Cometa, and AT&T Wireless is the nominal provider of Wireless HotSpot service in a number of venues. That's a promising business if managed properly.
Most notably, Cingular will inherit AT&T Wireless' spectrum holdings, which include 800 MHz ("traditional cellular"), 1.9 GHz ("PCS"), and (little-known), a considerable amount of 2.3 GHz Wireless Communications Service (WCS) spectrum - a legacy of Project Angel. Cingular also has WCS spectrum, so perhaps a "more" national footprint of such spectrum could result in competitive Broadband Wireless services given the looming Broadband Wireless efforts of competitors Verizon and Nextel. Ironically, the Project Angel technology could be revived and dusted off and effectively implemented as a replacement for wireline telephony and broadband services... but Cingular's parent companies BellSouth and SBC view themselves as being "in the wireline telephony business" and won't likely actively encourage what is already a withering trend towards wireless telephones completely displacing wireline telephones. Any such effort for "Fixed" Broadband Wireless (of any scale; there may well be trials) will undoubtedly be pushed off into the future as Cingular wrestles with the more immediate financial, operational, and technical challenges of engulfing and devouring AT&T Wireless.
Yesterday's Wall Street Journal had a good article which explores some of the issues of "Wi-Fi As Disruptive Technology" positioned against wireless telephony. Thanks for Wi-Fi Networking News (linked at right) for the link, and SFGate.com making the contents of the WSJ article available to those without a WSJ subscription at http://sfgate.com/cgi-bin/article.cgi?f=/news/archive/2004/02/13/financial0923EST0038.DTL or http://tinyurl.com/228kc
Steve Stroh