Cingular Wireless L.L.C. is one step closer to completing its previously announced deal to acquire 34 PCS licenses from bankrupt license holder NextWave Telecom Inc. for $1.4 billion after NextWave reported it received no qualified competing bids as of the Sept. 15 deadline that would have forced a competitive auction for the spectrum.
“No qualified bids were submitted by the bid deadline,” NextWave said in a court filing. “As a result, no auction is going to be held.”
The deal still requires approval from NextWave’s bankruptcy court, which is scheduled to address the matter Thursday.
Analysts had expected some of Cingular’s competitors could tender a qualified bid in an attempt to either steal spectrum that Cingular apparently feels it needs or at least drive up the price Cingular would have to pay for additional network capacity and coverage.
Cingular also announced the availability of GSM/GPRS services in central and south Texas as part of the carrier’s ongoing overlay of its legacy TDMA network. The carrier noted it invested $166 million in its Texas network last year and expects to invest an additional $390 million by the end of 2003.
In connection with the launch, Cingular said it will offer a dozen GSM devices this month in the markets, as well as an assortment of rate plans geared toward the new network.
Cingular also released a wireless local number portability checklist that the carrier said would help its customers prepare for the government mandate scheduled for Nov. 24.
The checklist, which the carrier dubbed “The A to Z of WLNP,” includes tips such as providing billing details from the existing carrier to the new carrier, allowing for at least a few hours for the process to be completed, not canceling the previous account until the new account is activated, being aware of an early termination fee if still under contract with the existing carrier, being prepared to use a different handset if the current model is not compatible with the new carrier’s network, and knowing that it may not be possible to port a current number to another metropolitan area.
“Many people may welcome the freedom to change carriers and keep their wireless phone numbers, but most are not aware that it can be much more complicated than it sounds,” said Adam Vital, vice president of wireless operations and support at Cingular. “The intention of our checklist is to help people avoid surprises.”
