EXHIBIT 99.1
FOR MORE INFORMATION
INVESTOR RELATIONS CONTACT:
KENT EVANS
404-236-6203
KENT.EVANS@CINGULAR.COM
MEDIA RELATIONS CONTACTS:
CLAY OWEN
404-236-6153 (OFFICE)
404-538-0124 (WIRELESS)
CLAY.OWEN@CINGULAR.COM
JENNIFER BOWCOCK
404-236-6319 (OFFICE)
404-213-1204 (WIRELESS)
JENNIFER.BOWCOCK@CINGULAR.COM
CINGULAR WIRELESS POSTS THIRD-QUARTER NET SUBSCRIBER GAIN OF 745,000;
AHEAD OF SCHEDULE IN GSM/GPRS NETWORK CONVERSION
- NET ADDS UP 38 PERCENT COMPARED WITH THE SECOND QUARTER OF
THIS YEAR, CINGULAR'S THIRD CONSECUTIVE QUARTER OF STRONG
SEQUENTIAL IMPROVEMENT IN NET ADDS
- HIGH-QUALITY SUBSCRIBER GROWTH WITH 92 PERCENT OF
THIRD-QUARTER NET ADDS POST-PAID
- 2.7 MILLION GROSS ADDS, UP 21 PERCENT FROM THE SECOND QUARTER
OF THIS YEAR AND UP 44 PERCENT VERSUS THE THIRD QUARTER OF
2002
- 4.6 PERCENT YEAR-OVER-YEAR GROWTH AND 4.4 PERCENT SEQUENTIAL
GROWTH IN REVENUES TO A RECORD $4.0 BILLION
- CELLULAR/PCS DATA REVENUES UP 104 PERCENT VERSUS THE THIRD
QUARTER OF 2002
- CINGULAR'S GSM/GPRS NETWORK NOW AVAILABLE TO 92 PERCENT OF
COMPANY'S POPS
ATLANTA - Oct. 20, 2003 -- Cingular Wireless LLC, the United States' second
largest wireless company, today reported third quarter results driven by strong
marketplace execution, accelerated subscriber growth and rapid expansion of its
GSM/GPRS network coverage.
For the three months ended Sept. 30, 2003, Cingular, a joint venture between SBC
Communications (NYSE: SBC) and BellSouth Corporation (NYSE: BLS), achieved net
subscriber additions of 745,000, up 38 percent from net adds of 540,000 in the
second quarter of this year. This was Cingular's strongest net add quarter in
more than two years, bringing its nationwide cellular/PCS customer base to 23.4
million.
Third-quarter gross subscriber adds totaled 2.7 million, the best quarterly
total in Cingular's history - up 21 percent from the second quarter of this year
and up 44 percent from the third quarter of 2002.
While accelerating subscriber growth, Cingular has also moved ahead of schedule
in its GSM/GPRS network overlay. As of Oct. 20, Cingular's GSM/GPRS network is
now available to 92 percent of the company's total POPs, exceeding and
substantially in advance of its previously announced target of 90 percent
coverage by the end of 2003.
"Cingular is executing very well, and we are delivering on our promise to grow
the business," said Stan Sigman, President and CEO of Cingular Wireless. "At the
beginning of this year, Cingular committed to a major step-up in subscriber
growth and to rapid conversion of our network to GSM/GPRS, the world's leading
wireless technology. Thanks to the efforts of talented Cingular employees across
the country, we're making good on our commitments. In the third quarter, we won
customers at a record pace. We're ahead of schedule on our network conversion.
And we have good momentum."
"Cingular has tremendous strengths," Sigman added, "and we are building on those
strengths to drive unprecedented growth. We have planned and executed our
network conversion carefully to deliver high-quality service. We have made a
series of moves to add spectrum. We have introduced new data services. We're
working closely with our parents' wireline operations to integrate wireless and
wireline services with innovations that are attractive to customers. And most
important, we've taken the initiative to make certain Cingular is in a strong
position to win with customers as the industry transitions to number
portability. I am very excited about the opportunities ahead."
FINANCIAL RESULTS
Cingular's third quarter financial results reflect strong subscriber growth and
aggressive execution as the company continues to invest in network conversion
and customer retention programs.
- Revenues grew to $4.0 billion, up 4.6 percent compared with
the year-ago third quarter and up a strong 4.4 percent versus
the second quarter this year.
- Cellular/PCS Subscriber ARPU (average revenue per user) which
represents the revenue received per subscriber, was $48.25,
down $.59 from third quarter of last year. After adjusting for
an accounting change in the current quarter (reclassifies
activation revenues as equipment revenue on sales from direct
and parent channels), the decrease in Subscriber ARPU is $.32.
- Cellular/PCS data revenue increased 104 percent year-over-year
largely due to rising popularity in SMS (short messaging
service), as well as downloadable ringtones and photo
messaging. Cingular delivered nearly 900 million SMS messages
during the quarter.
- Total operating expenses were $3.5 billion in the third
quarter, up 9.6 percent from $3.2 billion in the year-ago
period. Expenses were driven by record gross customer
additions, and extensive customer retention and customer
service initiatives in anticipation of Wireless Local Number
Portability (WLNP).
- Operating income was $488 million for the quarter, compared
with $616 million for the same quarter a year ago.
GSM NETWORK PROGRESS
Cingular's GSM network now reaches 205 million of the company's 222 million
covered POPs. Major markets turned up since the end of the second quarter
include Boston, Washington, D.C., Baltimore, Dallas, Houston, Atlanta, San
Antonio, St. Louis and Kansas City.
Customer response to Cingular's next generation GSM network launch has exceeded
expectations with store traffic increasing as much as 40 percent in some newly
converted markets. Approximately 35 percent of Cingular's customers are now GSM
equipped, up from approximately 27 percent three months ago.
GSM brings to customers a number of advantages including the widest variety of
handsets in the industry with features like color screens and camera phones.
Cingular's network also provides the latest in data services including
multi-media messaging and high speed packet data. Cingular began offering its 3G
service EDGE (Enhanced Datarate for Global Evolution) in Indianapolis in July,
becoming the first commercial wireless company in the world to offer the
service.
GSM is the world's most popular wireless technology, with more than 900 million
customers in 200 countries. And Cingular has been very successful in aligning
with GSM partners throughout the U.S. By combining its footprint with those of
other carriers through roaming agreements and joint ventures, GSM is expected to
be available in areas that contain approximately 90 percent of the total U.S.
population by the end of 2003 and almost 95 percent of the total U.S. population
where virtually all of Cingular customer usage is by the end of 2004.
ENHANCED SPECTRUM POSITION
As it has deployed its GSM network, Cingular has made a series of strategic
moves in recent months that will open new markets and improve its spectrum
position in existing markets. These initiatives will enable Cingular to expand
its network, increase capacity and lower roaming costs.
- Cingular is moving forward in its bid to purchase wireless
licenses from NextWave Telecom Inc. These licenses cover
approximately 83 million POPs in 34 markets. The transaction
requires FCC approval, and Cingular expects the transaction to
close in the first half of 2004.
- Also in September, Cingular agreed to acquire additional PCS
spectrum and operations in Texas, Arkansas and Louisiana and
cellular operations in Louisiana through an agreement it has
reached with US Unwired Inc.
- In August, Cingular Wireless agreed to purchase from Sunshine
PCS Corporation additional spectrum in the Florida markets of
Tallahassee, Panama City and Ocala.
- On Oct. 13, Cingular Wireless and Dobson Communications
announced a definitive agreement to exchange Dobson's
ownership in its Eastern Shore of Maryland cellular property
for Cingular's ownership in its Northwest Michigan cellular
property.
WIRELESS DATA INITIATIVES
Cingular also has launched a number of new data-related initiatives. In recent
months, Cingular:
- Added "PC to Mobile Messaging" with AOL, which allows AOL
Instant Messaging (AIM(R)) users to send instant messages to
-- and receive instant messages from -- Cingular phones.
Cingular previously launched a similar product with Yahoo.
- Made it easier for customers to download ringtones, games and
other entertainment offerings with its direct bill option.
- Introduced the simplest, easy-to-use multimedia messaging
service (MMS) in the industry. With Cingular's MMS, customers
can add voice, pictures, graphics and sound to their messages
with the company's new service that launched October 10.
WIRELESS/WIRELINE INTEGRATION
Cingular also continues to leverage its relationships with parent companies SBC
and BellSouth by creating innovative new wireline/wireless integrated products
and dramatically increase its sales through those companies.
Sales of Cingular service through SBC's and BellSouth's channels continue to
grow. Approximately 14 percent of Cingular's new contract customers in the third
quarter were added through SBC's and BellSouth's sales channels. Sales through
these channels were up five-fold from results in the third quarter of 2002 and
up 15 percent versus the second quarter of this year.
In September, the three companies introduced FastForward(TM) -- one of the
wireless industry's first devices to marry the convenience of wireless service
with the value of a wireline phone. The patented FastForward device, designed as
a cradle to hold a wireless phone, simply plugs into an electrical outlet. When
the Cingular Wireless phone is "cradled," calls to the wireless phone are
forwarded to a designated landline phone, while the wireless phone's battery is
automatically re-charged.
RETENTION EFFORTS AND WLNP
In addition to network progress and service innovations in recent months,
Cingular has undertaken a number of initiatives to prepare for the expected
introduction of Wireless Local Number Portability (WLNP) on Nov. 24. These
include implementation of targeted customer retention offers and creation of
unique marketing and advertising plans. As a result of these efforts, more than
70 percent of Cingular's postpaid customers are now under contract.
Cingular has also substantially completed systems work to implement WLNP, and is
training its employees to handle porting requests from customers. It is
currently signing and/or negotiating service level agreements with other
wireless carriers to create a formal process for moving one customer's phone
number to another. Cingular also has launched a customer education program on
WLNP to help consumers understand the process.
ABOUT CINGULAR WIRELESS
Cingular Wireless, a joint venture between SBC Communications (NYSE - SBC) and
BellSouth (NYSE - BLS), serves more than 24 million voice and data customers
across the United States. A leader in mobile voice and data communications,
Cingular is the only U.S. wireless carrier to offer Rollover(TM), the wireless
plan that lets customers keep their unused monthly minutes. Cingular has
launched the world's first commercial deployment of wireless services using
Enhanced Data for Global Evolution (EDGE) technology. Cingular provides
cellular/PCS service in 43 of the top 50 markets nationwide, and provides
corporate e-mail and other advanced data services through its GPRS, EDGE and
Mobitex packet data networks. Details of the company are available at
www.cingular.com.
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SBC's third-quarter earnings conference call, at which Cingular's earnings
results will be discussed, will be broadcast live via the Internet at 10 a.m.
Eastern time, October 21, 2003, at www.sbc.com/investor_relations.com.
BellSouth will host a conference call with investors, during which Cingular's
earnings results will be discussed, at 10 a.m. Eastern Time, October 22 at
http://www.bellsouth.com/investor/.
Forward-looking Information: In addition to historical information, this
document and the conference calls referred to above may contain forward-looking
statements regarding events and financial trends. Factors that could affect
future results and could cause actual results to differ materially from those
expressed or implied in the forward-looking statements include:
- the pervasive and intensifying competition in all markets
where we operate;
- problems associated with the transition of our network to
higher speed technologies caused by delayed deliveries of
infrastructure equipment and handsets, cost overruns,
perceived service degradation as more spectrum is devoted to
new technologies, customer dissatisfaction with new handsets
that operate on multiple networks to accommodate our
technology migration, equipment malfunctions and other
factors;
- slow growth of our data services due to lack of popular
applications, terminal equipment, advanced technology and
other factors;
- shortages and unavailability of spectrum for new services and
geographic expansion;
- pervasive and prolonged adverse economic and employment
conditions in the markets we serve;
- changes in available technology that make our existing
technology obsolete or expensive to upgrade;
- the final outcome of FCC proceedings, including rulemakings,
and judicial review, if any, of such proceedings, including
those pertaining to wireless local number portability;
- impact of local number portability on our growth and churn
rates, revenues and expenses;
- enactment of additional state and federal laws, regulations
and requirements pertaining to our operations;
- availability and cost of capital;
- impact of any industry consolidation; and
- the outcome of pending or threatened complaints and
litigation.
Such forward-looking information is given as of this date only, and Cingular
assumes no duty to update this information.