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Dobson Communications Corp. - Cell Phone Service -
Category Main Page
(405)
529-8500
14201
Wireless Way
Oklahoma City, OK 73134
www.dobson.net
Sales
$736 million
Business Description
Dobson communications is one of the largest providers of rural and suburban
wireless communications services in the United States. At December 31, 2003,
our wireless telephone systems covered a total population of 10.6 million
and we had approximately 1,552,100 subscribers with an aggregate market
penetration of 14.6%. We began providing wireless telephone service in 1990
in Oklahoma and the Texas Panhandle. We have expanded our wireless
operations rapidly since then, primarily through the acquisition of rural
and suburban wireless systems and through the internal growth of our
business. We offer digital voice and digital feature services to all of our
covered population through our existing Time Division Multiple Access, or
TDMA, digital network. We are currently in the process of updating our
digital network to Global System for Mobile Communications, or GSM, and
General Packet Radio Service, or GPRS, with an evolution towards Enhanced
Data for GSM Evolution, or EDGE, technology which will enable us to offer
enhanced data services to our subscribers and roaming partners. For the year
ended December 31, 2003, we had total revenue of $735.8 million, net income
applicable to common stockholders of $151.0 million and net income
applicable to common stockholders per common share of $1.42. At December 31,
2003, on a consolidated basis, we had $2.4 billion of indebtedness and
stockholders’ equity of $113.5 million.
We focus on acquiring and operating a mix of rural and suburban wireless
systems because we believe these wireless systems provide strong growth
opportunities due to lower penetration rates, higher subscriber growth rates
and less competition for subscribers than wireless systems located in larger
metropolitan areas.
Strategy
Our strategy is to capitalize on our competitive strengths and acquire,
develop and operate rural and suburban wireless systems. We have developed
organizational, marketing and operational programs designed to increase the
number of our subscribers, promote superior customer service, enhance
roaming revenue, control operating costs and improve the profitability of
our operations.
Locally-Focused Management. Our local management teams have day-to-day
operating authority with the flexibility to respond to individual market
requirements. We believe that our marketing and customer service functions
are more effective when tailored to the local market population. We
distribute our products primarily through retail outlets, a direct sales
force and independent dealers, all of which foster a strong community
presence for our products and operations.
Strategic Roaming Relationships. We have developed strategic relationships
with AT&T Wireless and Cingular Wireless, each of which operates wireless
systems in major metropolitan statistical areas, or MSAs, near our wireless
systems. These relationships include roaming agreements to allow our
agreements with AT&T Wireless and Cingular Wireless designate us as the
preferred provider of roaming service for each carrier in the majority of
our markets, and, under certain circumstances, provide that we are the
exclusive provider of such services in our markets. We believe these
strategic roaming relationships and agreements enable us to maximize our
roaming revenue and allow us to offer our subscribers rate plans that are
highly attractive and include the footprints of our roaming partners as
“home” territories.
Deployment of GSM/ GPRS/ EDGE Technology. We recently accelerated the
deployment of GSM/ GPRS/ EDGE technology over the entirety of our network.
We expect to deploy GSM/ GPRS/ EDGE technology over our entire coverage area
by the end of second quarter of 2004. GSM/ GPRS/ EDGE technology is the
digital technology being used by our primary roaming partners, AT&T Wireless
and Cingular Wireless, and will enable us to provide faster data services
and provide our customers with smaller, more functional handsets. We expect
that the deployment of GSM/ GPRS/ EDGE technology will enhance our service
offering and allow us to continue to grow our subscriber base. In addition,
we will continue to have the ability to provide roaming service for AT&T
Wireless and Cingular Wireless as they each continue to upgrade the
technology of their respective networks.
Targeted Sales Efforts. We seek to attract subscribers who will generate
high monthly revenue. Our local management designs marketing programs to
target these subscribers and tailors distinctive rate plans to emphasize the
quality and value of our services.
Superior Customer Service. We support local customer service through retail
stores, a direct sales force and regional customer service call centers that
offer 24-hour services. The regional presence of our call centers enhances
our knowledge of local markets, which improves our ability to provide
customer service, credit and collection and order activation.
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