Cingular’s recent acquisition of AT&T Wireless will
change the telecommunication industry for years to come. The merger
will affect consumers as the wireless industry continues to expand,
and as more Americans turn to wireless services, the merger will
play a role in the industry’s pricing structure and quality
of service.
Students will also notice the changes the merger brings to
signal quality, local stores and customer service. Furthermore,
they will have the ability to upgrade their plans from a selection
of new offerings.
Cingular announced its acquisition of AT&T Wireless on April
2 and the FCC cleared the merger on Oct. 26, making it
official.
A venture of BellSouth Corp. and SBC Communications Inc.,
Cingular acquired AT&T Wireless, which itself announced a
spin-off from its parent company AT&T on July 9, 2001.
The $41 billion purchase, or the amount Cingular paid to buy out
AT&T Wireless, is the largest acquisition in the U.S. wireless
industry.
Proponents of the merger say the new Cingular can provide the
best of both companies. Combining Cingular and AT&T Wireless
will offer more plans and features for consumers.
According to Cingular’s Web site, the new Cingular has the
largest voice and data network in the country, which means
customers should have better quality service in more areas. Since
Monday, customers have seen their network expand to 46 million
customers. Also, customers will have access to free rollover
minutes, formerly a Cingular exclusive feature.
Cingular believes that by expanding its current offerings, it
can attract new customers and expand its current customer base.
Students who are current customers may notice changes in their
service and students with competing service may choose to switch
their carrier.
Consumer advocates, favoring strong competition and lower
prices, say the merger will not benefit consumers. By eliminating a
competitor, Cingular can raise prices because the merger will also
lead to layoffs, as the company plans to downsize in order to
decrease costs.
Students are starting to notice some changes in their
service.
Stores, billing and customer service will use the Cingular name,
as the AT&T name will be eventually phased out. Signs at
various AT&T stores have already been changed.
The company’s new logo will retain the Cingular orange
emblem but also use AT&T’s signature blue bars.
Despite these changes, the goal for Cingular is to undergo a
“seamless transition,” said Lauren Garner, spokeswoman
for Cingular.
Garner said the main challenge will be to educate AT&T
customers about the merger. “They don’t need to do a
thing,” she said.
Whereas some students have enjoyed the changes the merger has
provided, others are not aware of the merger.
Students may notice better reception due to improved network
coverage. Some, such as third-year psychology student Ben Nguyen,
have seen improved reception.
“My cell phone service has improved in my
apartment,” Nguyen, a Cingular customer, said.
Jamil Patiag, a third-year psychobiology student and Cingular
customer, has also noticed a difference. “They’re
merging, so I get a better signal,” he said.
Current customers pleased with the merger’s changes
continue to enjoy their service.
Though the new Cingular promises increased service and more
features and plans from which the consumer can select, some
students remain unconvinced that the changes warrant switching
their carriers.
“In the past, Verizon has had better service,” said
Long Tsan, a fourth-year social sciences student and Verizon
customer. Tsan does not plan on switching to Cingular.
Chieh Lu, a fourth-year political science and sociology student
and former AT&T customer, made the switch to Verizon.
“I didn’t like AT&T because the service in the
dorms was horrendous. … Verizon worked better in my
apartment,” she said.
For many students, improved signal and new plans under the
merger have not been enough to sway them to Cingular. They are more
likely to stick with the carrier and service that has worked for
them.
Though students have seen improvements with their service, many
have only recently heard about the merger through other people.
Jaclyn Lipschitz, a third-year psychology student and AT&T
customer, heard about the merger from her dad who “watches
the stock market.”
Cingular has engaged in an advertising blitz to educate
consumers about the merger.
Current customers will be sent a 24-page magazine highlighting
available features and plans. They can upgrade to “better
plans and features,” Garner said.
In addition, three commercials are being aired on television.
Ads are also being launched in newspapers, on the radio and through
direct mail. “We plan to be seen,” Garner added.
The advertisement campaign will hopefully help Cingular to
retain its customer base, attract new customers and expand its
market share as the industry leader.
“We think we have the most to offer customers,”
Garner said.