GSM or TDMA? in areas where they built out their TDMA network well, service is fine. Just don't expect good coverage while traveling. The network is a patchwork.
(b) Joint Ventures45. Cingular Wireless/AT&T Wireless - As discussed in the Seventh Report, in January 2002, Cingular Wireless and AT&T Wireless announced the formation of an infrastructure joint venture to build out a GSM/GPRS network along 3,000 miles of interstate highways predominantly in western and midwestern states.
The companies have since expanded the venture to include highways in New England, increasing the coverage of the joint venture to more than 4,000 miles of roads. The companies also recently announced a new agreement to reduce roaming costs on each other?s networks.
46. AT&T Wireless/Sprint PCS - In January 2003, AT&T Wireless and Sprint PCS signed an agreement through which they will cooperate in the construction of new wireless towers.
Under the terms of the agreement, the companies will share information about their current tower inventories and future construction plans. This includes identifying areas of overlap; determining which company will build and maintain the tower; and deciding which will co-locate its network facilities on it. The companies claim that the arrangement will enable them to reduce the number of towers needed and the associated capital expenditures, thus enhancing their wireless footprints faster and at lower cost.
47. Cingular Wireless/T-Mobile - As mentioned in the Seventh Report, Cingular Wireless and TMobile (then known as VoiceStream) announced an infrastructure sharing joint venture in October 2001 whereby the companies would share their existing GSM networks in California, Nevada, and New York. Since then, in July 2002, T-Mobile launched service in California and Nevada (where Cingular already offered service), while Cingular launched service in New York City (where T-Mobile already offered service).
(e) Affiliations53. Three of the nationwide operators also have extended their coverage through contractual affiliations with smaller carriers.
These affiliations create a "family" of operating companies with much closer relationships than those formed by traditional roaming agreements. All of these affiliations were established to accelerate the build-out of the larger companies' networks by granting smaller affiliates the exclusive right to offer mobile services for those companies, in some cases under the larger companies' brand names, in selected mid-sized and smaller markets.(195)
54. AT&T Wireless - The AT&T Wireless family consists of AT&T Wireless, as well as its affiliations with two companies:
- Triton PCS and
- Edge Wireless, LLC ("Edge").(196)
In the case of Triton PCS, AT&T Wireless sold portions of some of its broadband PCS licenses to the company in exchange for a minority ownership interest.(197)
While Triton PCS is marketed under the brand name SunCom198 and Edge is marketed under its own name, both companies provide service as a "Member of the AT&T Wireless Network." These affiliates, like AT&T Wireless, have committed to upgrading their TDMA networks to GSM/GPRS.
55. Nextel - The Nextel family consists of Nextel and Nextel Partners, Inc. ("Nextel Partners").
In an arrangement similar to that of AT&T Wireless with its affiliates, in 1999, Nextel sold some of its SMR licenses to Nextel Partners in exchange for a minority ownership interest in the company.201
Nextel Partners is building out an iDEN network compatible with Nextel's, and Nextel assists Nextel Partners in obtaining terms similar to those Nextel receives from vendors for equipment and services.202 Both Nextel and Nextel Partners market their services under the Nextel brand name.
56. Sprint PCS - The Sprint PCS family consists of Sprint PCS and 10 affiliates.(203)
Each of the affiliates has an agreement with Sprint PCS to use the latter's PCS licenses to deploy CDMA technology and Sprint PCS-branded service in specific areas of the country.
In return, Sprint PCS receives 8 percent of the affiliates' local service revenue. In addition, Sprint PCS performs back-office tasks at cost for most of its affiliates, giving them the benefits of economies of scale for billing and customer service. Sprint PCS affiliates now provide service to more than 2.5 million subscribers.
Footnotes:
(195) See, e.g., Nextel, Automatic and Manual Roaming Obligations Pertaining to Commercial Mobile Radio Services, WT Docket No. 00-193, Comments, at note 20 (filed Jan. 5, 2001) ("To facilitate rapid deployment of its network throughout suburban, tertiary and rural areas of the country and move towards more ubiquitous nationwide service, Nextel entered into an agreement with Nextel Partners . . . to construct iDEN coverage using Commission licensed frequencies disaggregated by Nextel to [Nextel Partners], and offering its services to the public under the Nextel brand according to strict service quality standards.").
(196) In addition, AT&T Wireless has close relationships with a number of other operators.
AT&T Wireless and Dobson own equal interests in a joint venture, ACC Acquisitions, LLC ("ACC"), which provides service primarily in rural and suburban areas of the midwestern and eastern United States.
Dobson Communications Corporation, SEC Form 10-K, Apr. 1, 2002, at 72. Dobson operates the ACC markets under the brand name Cellular One.
Dobson Communications Corporation, SEC Form 10-K, Apr. 1, 2002, at 3, 8. AT&T Wireless owns approximately 12 percent of Dobson.
On December 2002, as part of a license swap with Dobson, AT&T Wireless agreed to transfer to Dobson its shares of Dobson Series AA preferred stock, which AT&T Wireless Services purchased in
(197) AT&T Wireless owns 15.7 percent of Triton PCS and 40 percent of Edge. AT&T Wireless, FCC Form 602 (filed Mar. 10, 2003).
(203) Five are public companies and five are privately-held. Cannon Carr et al., Avoiding the Hotel California: An Equity /High Yield Wireless Weekly, CIBC World Markets, Apr. 7, 2003, at 4.