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ARTICLE · 02 MARCH 2004

Communications Law Bulletin - February 2004 - (Continued)

Morrison Foerster
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February was a busy month at the Federal Communications Commission ("FCC" or "Commission"), in the Congress and at the state regulatory commissions. Among many important stories, the fallout from Super Bowl Sunday continued, with Congress and the Commission both reacting to public outcry over indecent programming. At the same time, the states and the FCC took separate initiatives over the regulation of Internet telephone service, and the FCC's momentous Triennial Review Order came in for ju

United StatesStrategy

Merger and Acquisition News

Cingular Wins Bid for AT&T Wireless; Regulatory Approvals to Follow

On February 17, 2004, Cingular Wireless ("Cingular") won its bid to acquire AT&T Wireless ("AT&T") for $41 billion. The $41 billion deal for AT&T, the equivalent of $15 a share, values the company at nearly 10 times its projected earnings for 2005. Cingular's competition for AT&T included UK-based Vodafone, against whom Cingular endured a bidding war, and earlier bids from DoCoMo and Nextel Communications. Vodafone holds a 45% stake in Verizon Wireless ("Verizon").

Cingular, a joint venture between SBC Communications and BellSouth, is the second- largest wireless carrier in the nation today; AT&T ranks number three. Together, Cingular and AT&T will surpass Verizon and become the nation's largest wireless carrier with approximately 46 million subscribers. The consolidation will reduce the number of national wireless competitors from 6 to 5, which may lead to less ongoing pressure to cut

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