News Release
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For Further Information:
David Caouette Russell Wilkerson
AT&T TeleCorp PCS
908-221-6382 703-236-1292
caouette@att.com rwilkerson@telecorp1.com
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AT&T and TeleCorp Agree to Exchange
Certain Wireless Assets
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AT&T To Gain Additional New England Properties;
TeleCorp To Receive Midwest Licenses
For Immediate Release: Monday, February 28, 2000
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New York -- AT&T and TeleCorp PCS announced today that the companies
agreed to exchange certain wireless assets to extend their respective service
areas.
Under the agreement, AT&T will transfer wireless licenses and rights
to acquire licenses in Iowa (including the Des Moines market) and Wisconsin to
TeleCorp, as well as a cash payment. As a result of this and other related
transactions, TeleCorp will add licenses covering a population of approximately
5.96 million people to its affiliate arrangements with AT&T. In return, AT&T
will receive TeleCorp's operating markets surrounding the Boston area, which
cover a population base of 1.93 million people.
"This transfer is a good example of how AT&T is using wireless
partnerships and affiliations to further our long term growth opportunities and
expand our footprint," said Dan Hesse, President and CEO of AT&T Wireless
Services. "The Boston franchise complements our wireless network, and
TeleCorp's commitment to build-out these midwest licenses with TDMA technology
effectively expands our footprint. We have a strong relationship with TeleCorp
and we're pleased to structure a transfer that better serves wireless customers
at both companies."
"New England has been an excellent market for TeleCorp," said Gerald
T. Vento, chairman and CEO of TeleCorp. "With this exchange, both companies
will be better positioned to compete by solidifying their respective footprints
with contiguous markets."
TeleCorp announced separately that it had signed a definitive merger
agreement with Tritel. Both companies are AT&T Wireless affiliates and AT&T has
consented to
the merger. In connection with the merger, AT&T will contribute to TeleCorp
rights to acquire additional wireless licenses in Wisconsin and Iowa, and extend
the term of its brand license to the merged entity, which will be called
TeleCorp, in exchange for approximately $410 million of common shares in the
newly combined company. This transaction will bring AT&T's equity stake in the
combined TeleCorp and Tritel to approximately 23 percent. Both the exchange
transactions and the merger transactions are subject to regulatory approval and
other conditions.
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