AT&T Wireless, and Cingular Wireless today announced they have resolved issues relating to the use of the AT&T brand in connection with Cingular's acquisition of AT&T Wireless. The agreement the parties have reached also includes a provision for the purchase of AT&T network services.
The three companies have modified the brand license agreement between AT&T and AT&T Wireless to clarify the use of the AT&T brand by AT&T Wireless and Cingular in connection with the merger in an effort to minimize customer confusion. In addition, AT&T and AT&T Wireless have also addressed and clarified certain brand-related issues. They expect the licensing agreement to remain in effect through the closing of AT&T Wireless' merger with Cingular and for six months beyond it.
During a six-month transition following the merger, Cingular will have certain licensee rights to the AT&T brand for wireless services.
Cingular intends to use its own brand for the new combined company following its acquisition of AT&T Wireless, and it will cease using the AT&T brand at the end of the transition period.
The deal also modifies the terms of separate, current agreements between AT&T and AT&T Wireless that involve the purchase of AT&T network services.
Under the terms of the new accord, a portion of the agreement under which AT&T provides services to AT&T Wireless has been modified and extended for up to 17 months. AT&T will provide the combined Cingular/AT&T Wireless with international long distance, private line services, and corporate telecommunications services. This represents a commitment of $100 million to AT&T, the companies noted.