Subject: [NEXTEL-1] Cingular $50 Talk All U Want Plan-

From: [email-masked]
Date: Thu, 19 Jun 2003 20:07:54 -0400

Cingular Takes Wireless Battle to New Low Price
Thu June 19, 2003 06:02 PM ET

By Ben Klayman

CHICAGO (Reuters) - Cingular has dialed a new low in the battle for cell-phone
sales, but it may make for happier customers.

Cingular, the second-largest U.S. wireless telephone company behind Verizon
Wireless, on Thursday announced a plan for the greater New York City region that
offers unlimited calling, starting at $50 a month. The offer is for a limited
time.

Some analysts see the rate setting a new pricing low for the industry.

"They've opened up Pandora's box. It's just the opening salvo," said Guzman & Co.
analyst Patrick Comack, who predicted rivals will be forced to match or beat the
offer. "A lot of the wireless carriers were talking about price hikes. That has
gone out the window."

The wireless industry has suffered from a slowdown in customer growth due to the
lagging economy. Competition has intensified as it has become more difficult to
add customers now that half the U.S. population owns cell phones.

Cingular, a joint venture of BellSouth Corp. BLS.N and SBC Communications
Inc.SBC.N , has suffered more than most of its national rivals because it has
failed to keep up with competitive pricing. It has moved aggressively under Stan
Sigman -- named chief executive last November -- to focus more on customers and
marketing.

Others see the new plan, which requires a two-year commitment, more as a move by
Cingular to capture market share.

"I don't see this as a catalyst to kicking off a price war. This is just to help
them in their recovery," said independent telecommunications analyst Jeff Kagan.
"With that said, I firmly believe unlimited (calling) plans are going to be a key
offering starting this year."

Cingular's offer lasts until the end of July and is meant to call attention to the
company's service in a market where it has operated for only one year. Similar
plans were offered previously in its Seattle and Philadelphia regions.

Cingular's offer is based on its GSM network. GSM, or Global System for Mobile
Communications, is the international standard popular in Europe and other parts of
the world, but is available only in certain markets in the United States.

Rivals have offered similar plans. Deutsche Telekom AG's DTEGn.DE U.S. mobile
operator T-Mobile USA has several plans on its network, including one for $40 a
month that includes 1,000 any time minutes but stops short of an all-you-can-eat
deal.

AT&T Wireless Services Inc. AWE.N offered customers unlimited calling for $100 a
month for a limited time late last year to attract customers to its GSM network.

"I couldn't speculate on what we might do in response to this particular action,"
AT&T Wireless spokesman Mark Siegel said of Cingular's offer.

Cingular has changed its advertising to focus on network coverage, reliability and
customer
service. It also has adjusted pricing plans to add regional calling plans, rather
than just
one-size-fits-all national rate plan

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