Press Release 2001

Cingular, VoiceStream to Share Wireless Networks in New York, California and Nevada - New Infrastructure Joint Venture accelerates time to market for both carriers; Reduces capital expenditures

ATLANTA, GA and BELLEVUE, WA, October, 2001 - Cingular Wireless and VoiceStream Wireless have entered into an infrastructure joint venture that will allow Cingular to offer service in New York City, and VoiceStream to provide service in California and Nevada quickly and cost-effectively. The companies estimate that by sharing their existing infrastructure in those areas they will each save hundreds of millions of dollars in capital expenditures and operating expenses going forward. Consumers will still be able to choose between Cingular and VoiceStream wireless services. The existing networks in those markets will cover over 55 million people, including three of the top ten markets in the country.

Cingular have created a 50/50 managed venture that will allow the companies to share their GSM network infrastructure in New York, California and Nevada.

Consumers in these markets will now have a choice between GSM service providers. Adopted by over 170 countries, GSM is the most commonly used wireless technology worldwide and gives customers the choice of using their number and services when traveling internationally to and from the United States.

"Cingular will now be ready to move into the New York City market in mid-2002," said Stephen Carter, President and CEO of Cingular Wireless. "This creative agreement with VoiceStream again demonstrates how innovative companies can provide expanded service for their customers while holding the line on costs and maximizing spectrum efficiency."

John Stanton, CEO of VoiceStream Wireless, said American consumers would benefit as VoiceStream becomes an even more competitive national operator. "VoiceStream is the leading nationwide provider of GSM service in the United States. We're excited to bring our service to California and Nevada and offer customers in these areas our "Get More" value proposition that the rest of the nation has found so compelling," said Stanton. VoiceStream will begin providing service in California and Nevada when sales, distribution and customer support systems are in place.

Although both companies will buy network services from the infrastructure joint venture in these markets, each company will retain its own licenses to provide wireless voice and data services. Each company will independently market its services to customers using its own brand name, and utilize its own sales, marketing, billing, and customer care operations.

Financial terms of the deal were not disclosed. The agreement is not subject to Federal Communications Commission (FCC) approval and has received approvals by Deutsche Telekom, SBC and BellSouth. It is expected to be completed by the first quarter of 2002, following customary closing conditions.

ABOUT CINGULAR WIRELESS & VOICESTREAM WIRELESS 

Cingular Wireless  (a joint venture of SBC Communications Inc., and BellSouth) is the second largest wireless carrier in the U.S., and currently serves more than 20 million customers nationwide. 

Based in Bellevue, Wash., VoiceStream and its affiliates own licenses to provide service to over 97 percent of the U.S. population. VoiceStream uses and operates Global System for Mobile (GSM) communications technology platform. VoiceStream is a member of the T-Mobile International group, the mobile telecommunications subsidiary of Deutsche Telekom. 

Contacts:

For more information: http://www.cingular.com and http://www.voicestream.com

Mobileinfo Comments & Advisory:  Strategy to start sharing wireless network infrastructure by otherwise competitors is a significant phenomenon in North American context. It started in Europe about 12 months ago. This stark realization may be new in telecommunications industry but is well known in more traditional and matured industries - automotive and petroleum, for example. It is well known that most petroleum companies share refineries and upstream facilities. Competition primarily happens in the downstream marketing arena where each company tries to distinguish itself in terms of look and appearance of its gas stations, pricing and the level of customer service they provide.