Cingular Becomes America's Largest Wireless Carrier After AT&T Wireless Acquisition

Cingular Wireless finalized its $41 billion purchase of AT&T Wireless in October 2004, after receiving the last required approval from the Federal Communications Commission. The deal made Cingular the largest mobile carrier in the United States, with a combined customer base of 46 million.

The FCC cleared the merger after rejecting all challenges filed against it, ruling that the transaction, under its conditions, would benefit the public interest. The Justice Department had earlier approved the deal on the condition that Cingular divest assets in 11 states to protect competition, pricing, and innovation.

Cingular chief executive Stan Sigman said the company was committed to "improving the wireless experience" for American customers. Cingular is jointly owned by SBC Communications and BellSouth.

Under the agreement's terms, AT&T Wireless shareholders received $15 per common share. Shares of both SBC and BellSouth dipped slightly on the day the deal closed, falling roughly 1.2 percent and 1.7 percent respectively.

Historical summary. TurkishPress restated this AFP wire report, first published in October 2004, in its own words.