The final financial terms have not been disclosed, but they did say they will each contribute equal amounts of spectrum to the joint venture. The new network is expected to be in operation during the first quarter of 2003.

AT&T Wireless and Cingular said the GSM/GPRS network will easily support an upgrade to EDGE and UMTS technology as needed.

Instead of building out their own networks independently, a time-consuming and expensive undertaking, these two telecoms see the joint venture as a way of holding costs in line while boosting spectrum efficiency.

"This is all about efficient deployment of our capital resources to the benefit of our customers," said AT&T Wireless’ chairman and CEO John D. Zeglis. "Through this unique joint venture, AT&T Wireless will provide its customers with the benefits of seamless GSM coverage in more markets, in less time, and at a lower expense."

The joint venture is one way AT&T Wireless is moving as fast as it can "to bring customers the next generation of wireless services," Zeglis said.

Under the terms of the agreement, both companies will purchase network services from the infrastructure joint venture in these markets, each company will independently market its services to customers under its brand name, and utilize its own sales and marketing departments.