On Friday, Dallas-based AT&T announced plans to obtain wireless properties from top competitor, Verizon, in efforts to improve 3G network coverage in America's rural neighborhoods. Eighteen states will be affected by the transaction.
Under this agreement, costing AT&T $2.35 billion, the telecom giant will seize 18 of the 24 markets that Verizon gained as part of its recent acquisition of Alltel Wireless. Because of Verizon's deal with Alltel, the wireless carrier became the largest provider in the United States - pushing AT&T down to the second position.
Friday's transaction, to be specific, will provide AT&T with various wireless properties, licenses, and network assets - including 1.5 million existing customers in nearly 80 service regions. The rural areas of Wyoming, Virginia, Utah, Tennessee, South Dakota, North Dakota, New Mexico, Nevada, Nebraska, Montana, Minnesota, Michigan, Kansas, Iowa, Colorado, California, Arizona, and Alabama will be affected.
"Wireless continues to be AT&T's greatest growth driver, and this transaction will complement our existing network coverage, particularly in rural areas," said AT&T Chief Executive Ralph de la Vega. "The acquisition will add network assets, distribution channels, and 850 MHz spectrum in a significant portion of the U.S., enabling even better coverage for AT&T's subscribers in those areas."
Changing the above-mentioned markets to Global System for Mobile (GSM) technology from Verizon's Code Division Multiple Access (CDMA) and converting operations to AT&T is predicted to take approximately one year. This transition is expected to cost approximately $400 million. Once the conversion is finished, customers in the above-mentioned areas will be able to enjoy AT&T's 3G network and compatible devices including the Blackberry Bold and iPhone.
The Dallas-based company told investors that the transaction is predicted to provide long-term stockholder value. This is AT&T's most recent initiative hoping to expand its wireless data services, which represents an important area of improvement. Last year, the telecom giant spent over $15 billion to extend its wireless network.
The demand for mobile applications is increasing steadily. On March 4, AT&T announced its top 10 performing mobile apps for the first quarter of 2009 - based on new sales between January and March. AT&T consumers are doing more than just talking and texting. They're tweeting, too!
AT&T's wireless data revenues increased 39% year-over-year, according to the Dallas-based company's first-quarter earnings report. An important contributor to this increase is the rising popularity of mobile apps and games, most of which can be found on AT&T's multimedia content store, AT&T MEdia Mall.
"Mobile applications help customers customize their handsets and better utilize the capabilities of their devices," said Mark Collins, Vice President of Voice and Data Products for AT&T Mobility and Consumer Markets. "Whether our customers want to stay connected to their favorite sources for entertainment or have 24/7 access to information, we offer apps relevant to the task." AT&T's top 10 performing mobile applications for 1Q 2009 were as follows:
AT&T's top 10 performing mobile games for 1Q 2009 were as follows:
AT&T's Media Mall offers more than mobile apps. Get ringtones, graphics, and more by visiting www.att.com/mediamall.
To further advance its mobile application offerings, AT&T became the first mobile carrier in America to deliver direct contact between its application developers and customers through AT&T Apps Beta. This application lets developers test new apps with AT&T customers, before making the application widely available.
AT&T and the Houston Independent School District (HISD) have signed an agreement, under which the telecom company will provide management services, allowing the school district to monitor more than 1,100 official vehicles and school buses wirelessly. With AT&T, HISD will have a more efficient and better-protected management of its vehicle fleet, thanks to GPS technology delivered by AT&T.
With management services from AT&T, the school district can track the speed and location of its vehicles – in real time – while verifying that school buses are adhering to scheduled routes and stops. In addition, HISD can keep track of each vehicle’s status by monitoring its ignition, safety lights, exit doors, etc.
“The insight delivered from this solution is invaluable – providing control, insight, and accountability for managing our buses and other vehicles,” said Aric Taylor, Manager of Routing and Scheduling, HISD. “Remotely tracking our vehicles and drivers enhances our ability to deliver Houston ISD students to school on time and keep them safe, which is our top priority.”
With AT&T’s fleet management service, the school district can effectively route its vehicles, resulting in a decrease in maintenance and fuel costs. HISD can be more productive in completing tasks, such as relocating bus stops to the most accessible, safest locations possible. Instant communication with safety personnel, provided by GPS technology, could allow the school district to evaluate each bus stop in less than one day. Without AT&T, this task may have taken a week or longer.
HISD and AT&T’s account team developed the perfect solution to meet the school district’s unique needs. During emergencies, HISD will be able to track fleet movement, providing quick response. Fleet management services, offered by AT&T, are developed to allow customers to keep track of mobile property, delivering important information over AT&T’s wireless network – the largest in the United States.
Thanks to thousands of cell phone users across the nation, AT&T and Cell Phones for Soldiers (CPFS) have reached a new peak. Since Earth Day (April 22) 2008, the Dallas-based telecom company and CPFS have recycled more than 2.5 million cell phones, surpassing this year’s goal by more than 700,000 wireless devices.
By recycling used cell phones, CPFS is able to purchase free phone cards for America’s overseas troops. Since Earth Day 2008, AT&T and the charity have asked wireless subscribers from various carriers to donate unused cell phones. The goal was to gather no less than 1.8 million phones by Earth Day 2009 – double the amount of cell phones that CPFS collected in 2008.
Only 10% of all wireless devices disposed of become recycled, according to the Environmental Protection Agency (EPA). ReCellular, CPFS’s recycling partner, estimates that by recycling 2.5 million cell phones, AT&T and CPFS have stopped more than 153 tons of e-waste from settling in America’s landfills. 153 tons is the environmental equivalent of:
“At AT&T, we know that if we make wireless recycling even easier for our customers—and all wireless users—they can do more of it,” stated Ralph de la Vega, AT&T President and Chief Executive Officer. “The response we’ve seen in the past year is a great example of the kind of contagious enthusiasm our customers have for supporting the environment and the men and women serving our country.”
If you would like to donate a wireless device to CPFS, please visit www.att.com/recyclewireless to find your nearest AT&T store.
Initially offering $100,000 for information leading to the arrest and conviction of the individuals responsible for severing fiber-optic cables in Northern California, AT&T has increased its reward to $250,000. Last Thursday morning, unidentified vandals cut four fiber-optic lines in San Carlos and South San Jose, CA, affecting thousands of Internet, wireless, and home phone customers.
South San Jose teams spent Thursday vigorously repairing the telecom company’s fiber-optic cables. Several worked in a manhole at Blossom Hill Road and Monterey Highway, some eight feet underground. Others worked above ground, inches away from a sign reading, “Warning: Buried Fiber Optic Cable in This Vicinity. Call Before You Dig.” Officials found more severed cables at Cottle Road and Hayes Avenue, which disrupted the service in the Silver Creek Valley, Tures, and Hellyer neighborhoods.
"We have zero tolerance for any criminal who would attack our network and harm customers," stated AT&T Spokesperson, John Britton. "We're going to aggressively work with law enforcement to see those responsible are apprehended and prosecuted to the fullest extent of the law."
The crime disrupted the service of wireless subscribers from various national carriers, as AT&T’s network is responsible for connecting these carriers to their respective cell towers. According to officials, San Jose and Santa Clara residents were without emergency 911 access for most of Thursday. AT&T’s service was fully functional in less than 24 hours.
According Ronnie Lopez, San Jose Police Sergeant, AT&T’s cut lines appeared to be intentional. Local law enforcement is regarding the incident as a felony act of vandalism. Although the FBI has been informed about the crime, the police department plans to conduct the investigation, Lopez stated.
A Sprint Nextel-owned line in San Carlos, CA was also cut.