Cingular closes in on NextWave licenses
The No. 2 U.S. wireless carrier confirms it's in talks to buy some of NextWave Telecom's wireless licenses, but says the deal isn't final.
A news release that said Cingular, the No. 2 U.S. wireless telephone company, had agreed to buy NextWave's licenses for 34 markets for $1.4 billion in cash was sent out by mistake, according to NextWave's public relations firm, Hill & Knowlton. The release, by Hill & Knowlton, was the result of a clerical error, the PR agency said.
"This release should not have been distributed," it said in a statement. "Hill & Knowlton regrets this error."
NextWave, which has been in bankruptcy protection since 1998, and Cingular, a joint venture between BellSouth and SBC Communications, have been in talks about a deal for at least two months.
"A definitive agreement has not been reached, and there can be no assurance that an agreement will be reached or, if reached, that any transaction will be consummated," Cingular said in a statement.
The release had said the wireless leader might buy licenses covering about 83 million potential customers primarily in markets where Cingular currently has voice and data operations.
Specifically, the licenses in question would cover cities across the country, including San Francisco, Los Angeles, Dallas, Houston, Chicago, Washington and Boston.
"It's increasing their available spectrum, which is going to allow more voice capacity and broadband data applications," said Legg Mason wireless analyst Craig Mallitz.
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