Cingular Wireless L.L.C. is cutting jobs in its Mobitex business, although the carrier declined to provide specifics.
Cingular said it is cutting a minimal number of jobs in its Cingular Interactive division, which runs its slower-speed Mobitex data-only network. Cingular said the job cuts will be achieved through attrition or placing employees in other roles within the company. Cingular declined to provide a current headcount for its Cingular Interactive business or a percentage of jobs cut.
“Like any major company, Cingular often reviews its regional operations and business units performance to make adjustments as necessary,” said Jennifer Bowcock, director of Cingular’s media relations. “These adjustments can include a variety of actions, including reducing the number of jobs.”
Bowcock said Cingular has no plans for companywide layoffs.
In other Mobitex news, the board of the Mobitex Operators Association decided that the organization would revert back to a volunteer staffing structure. Jack Barse, formerly the group’s paid executive director, was replaced by Kevin Swann, sales and marketing director for CML Microcircuits in the United Kingdom, who will serve as the MOA’s chairman of the board. Charles Nelson, president of Cingular Interactive, is an MOA board member.
Barse said the MOA will continue its work to promote Mobitex networks worldwide. The group was previously a volunteer organization.
Mobitex is a data-only network supporting speeds of around 20 kilobits per second. Cingular said its Mobitex network covers 93 percent of the urban business population in the United States and provides good in-building coverage and device battery life. Although Cingular Interactive does not provide subscriber numbers, those in the industry estimate the carrier’s Mobitex subscriber base to be around 800,000, about 400,000 of which are BlackBerry wireless e-mail users from Research In Motion Ltd.
Rumors that Cingular eventually plans to sell or shut down its Mobitex network have long circulated in the industry, especially due to the carrier’s GPRS and EDGE network buildouts. Further, other wireless carriers have withdrawn from a similar data-only network technology, CDPD. AT&T Wireless Services Inc. plans to shut down its CDPD network this year, while Verizon Wireless plans to shut down its CDPD network by the end of next year. Both AT&T Wireless and Verizon are working to move their CDPD customers to newer, faster network technologies.
