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Dobson builds bridge between wireline and wireless with MERGE

Dobson Communications Corp.’s Dobson Cellular Systems jumped into the
converged market last week with the launch of its MERGE product, which the
company said would help bridge the gap between traditional wireline and wireless
services by allowing customers to access their wireless calling plan features
from a wireline device.

The MERGE cradle device, which will retail for $100
and not require a monthly service fee, is similar to Cingular Wireless L.L.C.’s
FastForward offering that was launched last year, but implemented in a way that
Dobson said could be a stepping stone for customers looking to eventually ditch
their wireline service.

According to Dobson, the MERGE device allows
customers to place their wireless phone in the device that is then hooked up to
a wireline phone that can bypass the wireline network in favor of Dobson’s
wireless network and accompanying wireless features, including free
long-distance and unlimited night and weekend calling. While the device will
work with any current rate plan, Dobson’s Cellular One public relations manager
Craig Davis said the device would likely appeal most to customers that are
signed up for its unlimited offerings or have free long-distance on their
wireless accounts.

“The device will enable our customers to make better
use of their cell plan minutes,” Davis said, adding some may eventually
realize that they do not need to keep their wireline phone and will move all of
their calls to wireless.

In addition to providing a link between the two
services, the device also charges the wireless handset and provides access to
traditional calling features including caller identification, call waiting and
three-way calling. Davis noted that the most important feature of the device is
that it’s easy to use and set up.

“We spent a lot of time making sure
that the device was easy to use and easy for our customers to install,”
Davis said.

Dobson also noted the MERGE product is currently only compatible
with Motorola Inc.’s V400 and V600 handsets, but that it expects to include more
handset options in the future. The carrier added that it would likely not expand
the offering to include its TDMA handsets or its prepaid service that relies on
its TDMA network as it wants to focus on its recently deployed GSM network.

Cingular’s FastForward device, which is currently available for $25 and a
required $3 monthly fee, is compatible with more than 30 handsets including both
GSM and TDMA models. The service forwards a customer’s wireless calls to a
landline number supplied by either of Cingular’s parent companies SBC
Communications Inc. or BellSouth Corp. without the minutes counting against
their monthly wireless usage. A Cingular spokeswoman said the FastForward has
garnered positive reception from customers.

Unrelated to its MERGE product
launch, Dobson also announced last week a reselling distribution agreement with
Alaskan telecommunications provider GCI as well as a spectrum lease agreement
between the two companies.

The distribution deal is a 10-year agreement that
allows GCI to market Dobson wireless services in Alaska to current GCI
telephone, Internet and cable television customers as part of a bundled offering
as well as standalone wireless services under the GCI brand name. As part of the
agreement, which includes renewable three-year extensions, GCI will be
responsible for customer credit approval, billing and customer
service.

“We expect that this agreement will help us expand our total
customer base in Alaska more quickly, and that the expansion will provide us
with additional opportunities to introduce new wireless technologies and
services to our customers,” said Doug Stephens, Dobson’s chief operating
officer.

The spectrum lease agreement calls for Dobson to lease GCI’s personal
communications services licenses throughout Alaska to expand and enhance network
coverage and capacity. Financial terms of both deals were not released.

Dobson
is currently the largest wireless service provider in Alaska covering
approximately 92 percent of the state’s population and recently expanded its
reach through a network swap with AT&T Wireless Services Inc. involving Dobson’s
California properties as well as completed the upgrade of its legacy TDMA
network with GSM/GPRS technology.

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