<p>Cingular Wireless LLC got a boost of 554,000 subscribers in the first quarter, while the rival it has agreed to buy, AT&T Wireless Services Inc., saw a decline of 367,000.</p><p>AT&T Wireless is suffering more than other companies from number portability, which allows customers to keep their phone numbers when they switch providers, Guzman & Co. analyst Patrick Comack said Tuesday. He said many of the company's lost subscribers, especially business customers in the Northeast, are being gobbled up by Verizon Wireless, which is based in New Jersey and has a strong presence in the region.</p><p>"I think Verizon took the lion's share of those customers," Comack said. "I think Sprint was second in line and the rest went to the rest."</p><p>Comack said he doesn't believe the subscriber numbers will affect the $41 billion deal Cingular and AT&T Wireless announced in February since an expected loss of customers at AT&T Wireless was factored into the deal.</p><p>"This doesn't concern Cingular in the slightest," Comack said. "Value is in the network, the spectrum and the customer base. Obviously, Cingular is not happy about the customer decline, but it's not deterring them from going forward with this merger."</p><p>At AT&T Wireless' current share price, Cingular would still be paying a nearly $4 billion premium for the company. Cingular also has agreed to assume $6 billion of AT&T Wireless' debt.</p><p>AT&T Wireless reported the loss of subscribers for the January to March period, the first full quarter in which customers were allowed to keep their phone numbers after switching cell-phone companies.</p><p>AT&T Wireless blamed the decline on customer deactivations, a higher-than-expected number of customers not under contract, and the residual impact of fourth-quarter systems problems. In last year's first quarter, the company reported net subscriber additions of 257,000.</p><p>The Redmond, Wash.-based cell phone carrier said in its partial release of results that first-quarter services revenue totaled $3.7 billion, essentially flat with the year-ago period. The company releases full financial results Friday.</p><p>Cingular, meanwhile, said Tuesday that in addition to its gain in subscribers in the first quarter, it had revenue of $3.94 billion, up 8 percent from the $3.64 billion it recorded a year ago.</p><p>If the acquisition of AT&T Wireless goes through, Cingular would be the nation's largest cell phone provider with 46 million customers. The deal is subject to regulatory and shareholder approval.</p><p>AT&T Wireless said the release of its services revenue and net subscriber additions would enable Cingular and its parent companies to better respond to questions about the pending acquisition.</p><p>The Justice Department has requested documents on the size, value and structure of the deal to determine how the it would affect competition. Officials at both companies say the request is routine, and they will cooperate.</p><p>Atlanta-based Cingular is a joint venture of SBC Communications Inc. of San Antonio and BellSouth Corp. of Atlanta.</p><p>SBC shares fell 5 cents to close at $24.36 in trading on the New York Stock Exchange, where BellSouth's were up 3 cents to close at $26.08. AT&T Wireless' shares rose 25 cents to close at $13.82.</p><p>___</p><p>On the Net:</p><p>HASH(0x2854f54)</p><p>HASH(0x2854fd8)</p>
