Cingular reports 1.8 million new subscribers in fourth quarter

<p>Cingular Wireless LLC, the nation's largest mobile phone provider, said it ended 2004 with 49.1 million customers, an increase of 1.8 million during the fourth quarter in which it completed its $41 billion purchase of AT&T Wireless Services Inc.</p><p>The data was included in selected quarterly and year-end results released by the Atlanta-based company, which is a joint venture of BellSouth Corp. and SBC Communications Inc.</p><p>In November, chief executive Stan Sigman said the company planned to cut about 10 percent of its 68,000 jobs.</p><p>Cingular said that its increase in subscribers during the fourth quarter was its highest net-add quarter ever, when historical results of Cingular and AT&T Wireless are combined. Not counting net customer additions of AT&T Wireless for the first 25 days of the quarter and adjustments for dispositions and other acquisitions, reported net customer additions were 1.7 million.</p><p>"The merger is working, and it is everything we had hoped it would be," Sigman said in a statement.</p><p>Also during the final two months of the quarter, Cingular converted more than 1 million AT&T Wireless subscribers to new Cingular postpaid plans.</p><p>In the fourth quarter, Cingular's reported revenues were $7.1 billion. Including results from AT&T Wireless and other acquired properties for the first 25 days of October and excluding results from divested operations and operations to be divested, revenues in the period totaled $8.1 billion, up 1.8 percent from a year ago.</p><p>Cingular's fourth-quarter operating expenses totaled $7.3 billion. Direct merger integration costs increased Cingular's operating expenses by $245 million in the fourth quarter. It did not release net profit or loss figures.</p><p>Cingular completed its acquisition of AT&T Wireless on Oct. 26, creating the nation's largest mobile phone provider. It is trying to hang onto the No. 1 spot. No. 2 Verizon Wireless had 42.1 million customers at the end of the third quarter.</p><p>In November, Sigman said the job cuts would not start until January and would take place over 12 to 18 months. He said at the time that many of the 7,000 or so job cuts would come from administrative ranks, while relatively few if any would come from customer service.</p><p>Atlanta-based BellSouth reports fourth-quarter and year-end results on Tuesday; San Antonio-based SBC reports results on Wednesday.</p><p>___</p><p>On the Net:</p><p>HASH(0x286567c)</p>