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AT&T Wireless Delivers 3G UMTS Service in The United States

Posted on: Tuesday, 20 July 2004, 06:00 CDT

SEATTLE, July 20 /PRNewswire-FirstCall/ -- AT&T Wireless today began offering customers in Detroit, Phoenix, San Francisco and Seattle broadband mobile wireless services with its launch of the first commercially- available true 3G UMTS (Universal Mobile Telecommunications System) network in the United States. The company said it is also deploying UMTS technology in Dallas and San Diego, and expects to offer service in these markets before the end of this year.

AT&T Wireless said its wireless broadband service turns these markets into "metropolitan hotspots," offering customers continuous, high-speed wireless connections. Customers can now use a handset, PDA or laptop to receive streaming audio and video services; create and share video clips; experience richer and more visually compelling content; and connect to critical business information, in most areas throughout these cities. The company also noted that it launched commercial service in these four cities in fulfillment of NTT DoCoMo's shareholder rights agreement.

"We're delivering on our promise to offer 3G wireless services in the U.S., and bring the benefits to American consumers and businesses," said John Zeglis, AT&T Wireless Chairman and CEO. "In a few short years, we've increased wireless data speeds more than tenfold across the country. Today's announcement enables our customers to access information, video, and audio on their wireless device faster than most people do from their wired computer at home," he added.

Today's commercial launch is made possible by our strategic relationships with equipment and device manufacturers, content providers and a host of leading high-tech companies," Zeglis said. "In particular, our collaborators and partners at NTT DoCoMo played a major role in helping us bring our 3G services to market."

"AT&T Wireless customers can now experience advanced wireless services similar to those offered to our customers in Japan," said Dr. Keiji Tachikawa, the former President and CEO of NTT DoCoMo, who now serves on the company's Board of Directors. "We are glad to have worked with AT&T Wireless over the past three years as they have established themselves as the North American leader in wireless data services, and today, as they launch true, commercial 3G wireless to the United States."

GLOBAL STANDARD and UNMATCHED POTENTIAL

AT&T Wireless said the four-city UMTS (also known as W-CDMA) deployment is the next logical step for delivering 3G services on the world-standard GSM(TM) wireless technology platform. Currently, there are more than one billion GSM subscribers in more than 200 countries around the world.

The company said it now offers the fastest nationwide wireless data service with EDGE, and provides true 3G service in more U.S. markets than any other company. In addition, AT&T Wireless noted that its customers can use most of its GSM devices for voice services in more than 140 countries and data services in more than 60 countries, which is a significant advantage compared to the more limited reach of services from its competitors.

The commercial launch of UMTS by AT&T Wireless, and the expanded spectrum position that will result from the pending merger of AT&T Wireless and Cingular Wireless, will enable the new combined company to offer customers a more expansive portfolio of wireless data solutions in North America. With the completion of the merger targeted before the end of the year, the new combined company will be better positioned to deploy UMTS nationally. Cingular recently disclosed plans for UMTS deployment, which it said will include trials in Atlanta this summer and could begin rolling out in 2005.

AT&T Wireless said its wireless broadband service provides customers with average wireless data speeds between 220 and 320 kilobits-per-second (kbps), with bursts up to 384kbps. In the future, the company noted that UMTS can be easily and cost-effectively upgraded to HSDPA (High Speed Downlink Packet Access), which is estimated to attain peak data rates up to 14.4 megabits-per- second (mbps).

Starting today, AT&T Wireless said its customers can access the new wireless broadband service using either the Motorola A845 ($299.99) or Nokia 6651 ($299.99) handsets. In addition to providing access to high-speed wireless data connections and enhanced content through AT&T Wireless' mMode(TM) in the four markets announced today, the company said the handsets can be used to make voice calls or access wireless data connections at speeds equivalent to standard wired dial up service, when customers travel outside the four initial markets. The company said it is also offering a UMTS modem developed jointly by Lucent and Novatel ($149.99 with rebate), in addition to the handsets.

SUPPORTING CAST FOR CONSUMERS AND BUSINESSES

AT&T Wireless said a number of the world's leading technology companies plan to take advantage of the higher throughput of its wireless broadband service to deliver applications, products and services to their customers. For consumers, mMode offers a host of high-speed, premium steaming and downloadable video and audio entertainment services. Premium entertainment services provided by RealNetworks(R), Inc. give mMode customers the ability to enjoy hours of new, fun and informative content every day, including: ABC News, NPR News, CBS Marketwatch, FOX Sports, Sporting News Radio, The Weather Channel(R), as well as, prime time TV and soap opera recaps, movie reviews and trailers, horoscopes, book reviews and more.

"We congratulate AT&T Wireless on the successful launch of the first commercially-available true 3G UMTS network in the US market -- an undertaking that will transform the face of mobile communications for U.S. consumers," said Carla Stratfold, senior vice president North America, RealNetworks, Inc. "Leveraging Real's relationships with 3G operators in other parts of the world, we have created mobile content services able to fully leverage the throughput of high-speed data networks such as UMTS and EDGE to deliver power, convenience and of course, full-speed, fun and valuable content to customers' handsets."

AT&T Wireless said mobile professionals will be able to the use the modem or the handsets' Bluetooth connectivity to wirelessly enable Internet and e- mail access using HP handhelds and notebook PCs. Customers using Microsoft's Exchange Server 2003 with products in their work environment will receive a familiar and much-enhanced wireless connectivity solution for accessing their e-mail, contacts and calendar.

"HP is committed to driving innovation across all aspects of mobility -- from handheld devices to network infrastructure and services -- and working with partners to create a compelling mobile experience for our customers," said Alex Gruzen, senior vice president and general manager, Mobility Computing at HP. "We value the work AT&T Wireless has done to bring wireless broadband access to the U.S. market; it's a significant milestone towards enabling a world of fast, continuous access to rich mobile services for business users and consumers."

"Business professionals today understand the value of seamless and enhanced wireless access, and its ability to boost their productivity in the workplace," said Pieter Knook, senior vice president of the Mobile and Embedded Devices Division at Microsoft. "AT&T Wireless' experience in high- speed data networks and services -- combined with the power of Microsoft software and joint planning -- makes the vision of mobile access to information a reality."

AT&T Wireless also said business customers who use IBM's Websphere(R) Everyplace (TM) Connection Manager (WECM) will have a mobile-specific Virtual Private Network (VPN) that encrypts data and optimizes performance for ultra- fast mobile access, and SAP's mySAP Mobile Business customers will also benefit from the wireless broadband speeds. Intel has also formally endorsed UMTS technology and plans to work with AT&T Wireless on developing and co- marketing UMTS services in the future. In addition, AT&T Wireless also said companies such as Perseus Wireless will offer specialized solutions like remote monitoring of existing security camera systems using UMTS handsets.

AT&T Wireless said the combination of its recent GSM network improvements, national EDGE upgrade and today's UMTS deployments give its customers access to some of the most advanced wireless voice and data services in the world.

The company's wireless broadband service is available to consumers and businesses through a variety of distribution channels or by calling 1-800-844- 4813 or visiting http://www.attwireless.com/umts. Customers can select from any of AT&T Wireless GSM calling plans for voice services and can receive a monthly unlimited enhanced mMode plan for $24.99. Businesses can purchase unlimited data access for $79.99 monthly.

About AT&T Wireless

AT&T Wireless is the second-largest wireless carrier, based on revenues, in the United States. With 21.692 million subscribers as of March 31, 2004, and revenues of more than $16.8 billion over the past four quarters, AT&T Wireless delivers advanced high-quality mobile wireless communications services, voice and data, to businesses and consumers, in the U.S. and internationally.

Forward-Looking Statements

This press release contains "forward-looking statements" which are based on management's beliefs as well as on a number of assumptions concerning future events made by management with information that is currently available to management. Forward-looking statements may include, without limitation, management's expectations regarding: our future financial and operating performance and financial condition, including the company's outlook for the fiscal year 2004 and subsequent periods; the outcome of our pending transaction with Cingular; subscriber growth; industry conditions; the strength of our balance sheet; our liquidity and needs for additional financing; and our ability to increase revenue, margins and operating free cash flow.

Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside AT&T Wireless' control, that could cause actual results to differ materially from such statements. Without limitation these factors include: the risks associated with the implementation of our technology migration strategy, uncertainty concerning the effects of our pending transaction with Cingular, our ability to continue to reduce costs and increase the efficiency of our distribution channels, the potential competitive impacts of industry consolidation or alternative technologies, potential impacts on revenue and ARPU from competitive pricing and slowing penetration in the wireless industry, the effects of vigorous competition in the markets in which we operate, the risk of decreased consumer spending due to softening economic conditions, acts of terrorism, and consumer response to new service offerings. For a more detailed description of the factors that could cause such a difference, please see AT&T Wireless' filings with the Securities and Exchange Commission, including the information under the heading "Additional Factors That May Affect Our Business, Future Operating Results and Financial Condition" and "Forward Looking Statements" in its annual report on Form 10-K filed on March 5, 2004.

For Further Information:

Jeremy Pemble Ritch Blasi

425-580-5997 (office) 908-696-4242 (office)

425-894-5012 (wireless) 908-612-1760 (wireless)

AT&T Wireless

CONTACT: Jeremy Pemble, +1-425-580-5997 (office) or +1-425-894-5012(wireless), or Ritch Blasi, +1-908-696-4242 (office) or +1-908-612-1760(wireless), both of AT&T Wireless

Web site: http://www.attwireless.com/umts

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