News
Issue #2003 - 31 (December 2003)
(Updated Dec. 16, 2003)

ACQUISITIONS, MERGERS & AGREEMENTS

Mergers & Acquisitions Related News This Fortnight

1. AT&T Wireless to Buy U.S. Cellular Network By Associated Press November 26, 2003 
Source - Associated Press

AT&T Wireless agreed to buy United States Cellular Corp.'s South Texas cell-phone network for $95 million. The acquired network has 74,000 customers. The deal, expected to close early next year, will allow Redmond-based AT&T Wireless to tie together its networks in Houston, San Antonio and Austin and add coverage in Corpus Christi and Laredo, the company said Wednesday. For U.S. Cellular, the deal lets it exit the South Texas market, which is geographically removed from its larger operations in the Midwest and North Texas. U.S. Cellular, which had 2002 revenue of $2.18 billion, said the network contributed $45 million to revenue in the third quarter. That represents 7 percent of the Chicago-based company's third-quarter revenue of $657.3 million. 

2. Intel To Combine Communications Groups 
SANTA CLARA, Calif., - Intel Corporation today announced it is combining its communications-related businesses into a single organization: the Intel Communications Group (ICG). 

Intel's communications efforts -- providing building blocks for the communications infrastructure and the cellular and handheld computing market segments -- have been divided between ICG and the Wireless Communications and Computing Group (WCCG). The newly combined organization will be headed by Sean Maloney, Intel executive vice president and general manager of ICG.

Separately, the company announced that Ron Smith, Intel senior vice president and general manager of Intel's WCCG unit, will retire early next year.

"We continue to drive the convergence of computing and communications through our product lineup, and with this we see wireless local area networking and wide area cellular technologies coming together," said Intel CEO Craig Barrett. "Consolidation gives us better product planning and customer focus in these strategically critical areas going forward."

ICG will assume WCCG's product portfolio in addition to its current focus on network processors, wireless LAN chipsets, gigabit networking solutions, network cards and related infrastructure technologies. WCCG products include processors based on Intel® XScale technology along with chipsets, reference designs, software and other technologies built around the Intel® Personal Internet Client Architecture (Intel® PCA). Products also include Intel's flash memory business and digital signal processing activities.

Smith, 53, is a 26-year veteran of the company. He led Intel's movement into CMOS with development of the process for manufacturing Intel's 80386 processor. Smith went on to lead Intel's embedded processor and PCI components divisions. More recently, as general manager of WCCG he led Intel's efforts in flash memory and processors based on Intel XScale technology for the cellular and handheld computing market segments.

MobileInfo Comments and Advisory: The first news item of AT&T Wireless acquiring a piece of US Cellular network is just a minor rationalization that makes sense for both companies.

However, Intel's reorganization of its wireless communications initiatives is far more significant. We interpret following messages from Intel's moves:

First, so far, it has invested more in it than harvested out of its wireless-related investments. That should have been expected. Nobody, other than trade reporters and PR agencies, should have expected that. But Intel sees its future growth in mobility and wireless far sure. You have to tune your strategy in mid-course as move in this direction. Secondly, Intel is looking at converged world where handsets will deliver both functionality - voice and data. In fact, it sees VoIP and VoWLAN in its crystal glass. It wants to compete head on with TI and be a competitor to whatever will become of Motorola's decision to farm out is semiconductor chip business.

Note: This news release may contain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of Securities Exchange act of 1934 in USA. Similar provisions exist in other countries. There is no assurance that the stipulated plans of vendors will be implemented. MobileInfo does not warrant the authenticity of the information. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.