|
AT&T Wireless Services, Inc.
(425)
580-6000
7277
164th Avenue NE, Building
Redmond, Washington 98052
www.attwireless.com
Sales
$16.7 billion
Business Description
We are the second-largest wireless communications service provider in the
United States based on revenues for 2003. We seek to expand our customer
base and revenue stream by providing high-quality, innovative wireless voice
and data services. As of December 31, 2003, we had 22.0 million consolidated
subscribers.
We currently provide wireless voice and data services principally over two
separate, overlapping networks. One network uses time division multiple
access, or TDMA, as its signal transmission technology. As of December 31,
2003, it covered an aggregate population, which the wireless industry refers
to as “POPs,” of approximately 207 million, or 71 percent of the U.S.
population. We also provide voice and enhanced data services over a separate
network. This network uses the signal transmission technology known as
global system for mobile communications, or GSM, for voice services and
general packet radio service, or GPRS, and enhanced data rates for global
evolution, or EDGE, for data services. As of December 31, 2003, this network
covered approximately 220 million POPs, or 76 percent of the U.S.
population. As of December 31, 2003, these two networks within our
consolidated markets covered an aggregate of approximately 226 million POPs,
or 78 percent of the U.S. population, and operated in 87 of the 100 largest
U.S. metropolitan areas. We refer to this as our network footprint or
service area. Our network footprint coverage is estimated using signal
mapping technology and population data compiled by third parties. We also
provide voice service on our analog network, as mandated by the Federal
Communications Commission (FCC), and data service over a network utilizing
packet switched data technology, or CDPD. We are phasing out our CDPD
network as we increase data capabilities on our GSM/ GPRS/ EDGE network.
We supplement our own networks with roaming agreements that allow our
subscribers to use other providers’ wireless services in regions where we do
not have network coverage. We refer to the area covered by our network
footprint and roaming agreements as our coverage area. With these roaming
agreements, as of December 31, 2003, we were able to offer our TDMA
customers wireless services covering virtually the entire U.S. population
and to provide voice and data services through our GSM and GPRS networks
over approximately 88 percent and 83 percent, respectively, of the U.S.
population. We also offer multi-mode devices that allow our customers to
access analog, TDMA, and GSM/ GPRS networks, providing them access to
wireless service across the U.S., or to access TDMA and GSM/ GPRS both in
the U.S. and abroad, providing them access to wireless services around much
of the world. We plan to continue to expand our service and coverage area
and increase the capacity and quality of our GSM/ GPRS/ EDGE network through
new network construction, acquisitions, joint ventures, and roaming
arrangements with other wireless providers.
Over the past two decades, our strategic focus has evolved from an emphasis
on license acquisition, expanding our footprint coverage, and growing
subscribers to, most recently, revenue, OIBDA (defined as our operating
income excluding depreciation and amortization) and cash flow growth. Our
strategic focus going forward will emphasize, in addition to revenue and
OIBDA growth, increasing free cash flow (defined as our cash flows from
operating activities less capital expenditures).
During 2003, we continued to grow our subscriber base and the profitability
of our business. We grew our subscriber base 5 percent in 2003, with 1.1
million net consolidated wireless subscriber additions during the year.
Services revenue increased by over 8 percent versus the prior year, to $15.7
billion. OIBDA grew by over 76 percent from the prior year, to $4.4 billion,
while our OIBDA margin continued to expand. Additionally, 2003 marked the
first-ever year of positive free cash flow, as we generated approximately
$1.8 billion. We expanded our domestic GSM network which, along with
affiliates and roaming partners, now covers more than 255 million POPs,
while increasing our international roaming coverage to over 130 countries
and jurisdictions. We launched our EDGE network, the fastest national
wireless data network in North America. Also in 2003, we introduced many new
products and services, including GoPhone® service, our pay-in-advance
product, as well as enhanced mMode data services. And finally, our
companywide initiative known as “Project Pinnacle” was launched in 2003 as a
multi-year drive toward improved operating efficiency and margins.
In the fourth quarter, we experienced significant difficulty implementing an
upgrade to our GSM customer support systems, which had an adverse effect on
subscriber activations and customer care. Our results were also affected by
implementation of wireless Local Number Portability (LNP) in the fourth
quarter, which resulted in an increase in our churn rate. We expect that
higher churn and lower subscriber growth as a result of these issues,
compounded by increased competition, will continue to impact our results of
operations through the first half of 2004.
Wireless Plan, Cell Phone Service -
Category Main Page
Cell Phone Service Providers in the Company Directory
ALLTEL
AT&T Wireless
Services
Dobson Communications
Nextel
U.S. Cellular
Western Wireless
|
|
