Added: 11/10/2005 |
Suncom completed the integration of the at t wireless networkToday, SunCom Wireless operates at t wireless network and is licensed to provide digital wireless communications services in an area covering 14.3 million people in the Southeastern United States and 4.0 million people in Puerto Rico and the U.S. Virgin Islands.
In 2000, Local wireless carrier TeleCorp PCS and SunCom deployed for third-generation wireless technology by using general radio packet services (GPRS) technology over its existing time division multiple access (TDMA) infrastructure. The inclusion of GSM service enabled SunCom customers to do roaming in Europe and Asia. Using GSMs ensured a greater variety of applications, wider availability of SunCom services and devices at lower costs, and the opportunity for true global roaming through a GSM/GPRS handset. As an affiliate of AT&T Wireless, TeleCorp offered its customers the benefits of nationwide service on the at t wireless network.
"Our decision to go GPRS/GSM is the next step on our third-Generation, or high-speed, data migration path," said Raúl Burgos, vice president and general manager of SunCom in Puerto Rico. "By selecting GPRS/GSM for our next phase, we will be better positioned to give our customers more choices at a more competitive price. And with the future availability of a GPRS/GSM/TDMA handset, subscribers will be able to use both networks."
In the third quarter of 2005, Suncom integrated the at t wireless network and completed the migration of AT&T Wireless customers to SunCom Wireless systems in the acquired markets in North Carolina and Puerto Rico. With the integration of at t wireless network, the migration was needed for the transformation of the customers to SunCom's system. The process required significant customer involvement, which resulted in higher than expected subscriber churn as well as higher retention costs to reduce subscriber deactivations.
"Now that we have fully completed the customer migrations and systems integration, 100 percent of SunCom customers are supported by SunCom networks and systems," said SunCom CEO Michael Kalogris. "With the end of the migration process, I am confident that our current strategy will enable us to realize our full growth potential from the new markets."
"As we worked through the migration process, we made a significant investment in building long-term relationships with our customers, the effect of which had a short-term, negative impact on our financial results," added Kalogris. "Building and maintaining these relationships is our top priority and a critical part of our strategy to successfully grow our business."
In August, SunCom terminated the agreement to purchase Urban Communicators. SunCom's $5 million deposit plus interest was returned, and all matters related to this transaction have been settled. In September, the company reached an agreement whereby Cingular acquired approximately 29,000 former AT&T Wireless enterprise customers that had not yet migrated to SunCom in exchange for a cash payment of $3.1 million.
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