Deal Set to Let AT&T; Return to Wireless

AT&T; Corp. has reached an agreement with one of its biggest rivals, Sprint Corp., to offer cellphone service over Sprint’s wireless network, the companies said Tuesday.

The five-year deal will allow AT&T; to reenter the wireless business and pitch another service to its 30 million customers. Terms of the deal were not disclosed.

The nation’s biggest long-distance telephone company got out of the wireless business when it spun off AT&T; Wireless Services Inc. as a separate company in 2001.

AT&T; will resume offering wireless services after Cingular Wireless closes its $41-billion deal to buy AT&T; Wireless; the deal is expected to be completed this fall.

The Cingular deal has freed AT&T; to use the AT&T; Wireless name, but that may be a marketing challenge. AT&T; Wireless led the industry in consumer complaints last year, according to Consumers Union. Sprint is No. 2.

AT&T;’s reentry into the wireless business is likely to drive rates lower. The company, which is already testing wireless services in select U.S. markets, said it hoped to launch this year.

“AT&T; has proved it is capable of rolling out bundles of new and complex services quickly and cost-effectively, with top-notch customer service,” AT&T; Chairman and Chief Executive David W. Dorman said.

Dorman said AT&T; planned to add the wireless service to its AT&T; OneRate local and long-distance plans and its CallVantage voice over Internet protocol service.

AT&T;’s stock rose 11 cents to $16.73 while Sprint’s shares climbed 47 cents to $17.58. Both trade on the New York Stock Exchange.