AT&T Wireless cuts rates on calls to 30 Countries

AT&T Wireless cuts rates on calls to 30 Countries

New rates are best in the wireless industry, enabling customers to make all their international calls from their wireless phones Expands text messaging to nearly half the world’s wireless subscribers Unveils results of new Harris Interactive Survey on international wireless calling


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Basking Ridge, NJ–(HISPANIC PR WIRE)–January 15, 2004–AT&T Wireless [NYSE: AWE] today announced that it has significantly reduced per-minute rates for calling 30 frequently dialed countries from the U.S. and that it has extended the reach of its international text messaging to nearly half the world’s wireless subscribers.

The company also released the findings of a new survey by Harris Interactive, demonstrating strong interest in the use of wireless phones for international communications.

AT&T Wireless’ Lowest-Ever International Dialing Rates

In reducing its Enhanced Discounted International Dialing rates to 30 countries, the company is offering the best international rates in the wireless industry.

“With rates this low, AT&T Wireless customers can use their wireless phone as their only phone for international calling. Not only does AT&T Wireless offer its best-ever international rates for calling these destinations, but we also offer the most coverage worldwide with a single phone, dedicated customer care for international calling, and a wide range of the hottest wireless devices,” said Terry Madonia, senior vice president of marketing, AT&T Wireless.

The new rates are available to AT&T Wireless customers who sign up for Enhanced Discounted International Dialing and are on a qualifying plan, which includes many of the company’s most popular calling plans. Enhanced Discounted International Dialing, an offer designed for frequent international callers, costs an additional $3.99 per month and entitles customers to call 220 countries at discounted rates from the AT&T Wireless network, including the 30 countries further discounted today (see chart below)*.

Text Messaging: Thumb a Ride to Nearly Half the World’s Wireless Subscribers

Also effective today, AT&T Wireless’ international text messaging service reaches nearly half the world’s approximately one billion wireless subscribers.

AT&T Wireless’ coverage for international text messaging service is among the most comprehensive in the industry. The company’s international text messaging service now spans 40 countries worldwide, including 18 of the 30 countries included in today’s international calling announcement. A complete list of text messaging availability by country can be found at www.attwireless.com/text/international.

More Countries With a Single Phone

AT&T Wireless is not only an attractive option for customers who call or text abroad from the U.S., but for those who want to stay in touch while traveling overseas. AT&T Wireless uses GSM technology, which is used by more than 70 percent of wireless customers worldwide. Using their GSM phones, AT&T Wireless customers can place voice calls in more than 120 countries and access data services, such as the company’s mMode service, in more than 40 countries. The company also offers dedicated round-the-clock support for customers who are traveling and have questions about placing international calls.

Among the many GSM devices that can be used overseas are several “world phones,” including the NEC 515 and 525, Handspring Treo 600 smartphone, Nokia 3650, and the recently announced Motorola V600. These devices work in every country where AT&T Wireless has GSM roaming agreements.

Consumer Demand High for Wireless International Communications

Additionally, a new Harris Interactive survey commissioned by AT&T Wireless shows that many Americans who make international calls are using their wireless phone for these calls, and even more are interested in doing so. Among the survey findings:

• Nearly 1 in 4 adult Americans (24 percent) who call abroad from the U.S. typically use their wireless phone to do so.

• In addition, more than half of adult Americans who call abroad from the U.S. are interested in using their wireless phone to do so if they can receive discounted rates.

• Among consumers who choose wireless for international calling, 28 percent most commonly cite convenience as the reason while a quarter (24 percent) cite affordability.

“These results show an impressive number of Americans already enjoy the convenience of calling overseas with their wireless phone, and even more are interested in doing so if they can get a great deal,” said Madonia. “With AT&T Wireless’ pricing announcement today, these customers no longer need to wait.”

In addition, the survey finds:

o About 1 in 3 Americans who say they travel abroad already use their own wireless phone to place calls while traveling (33 percent) — making this the most common calling method. (Hotel phones and payphones are each used by 26 percent of international travelers, 27 percent borrow a friend or relative’s phone, and 6 percent rent a cell phone.)

o What’s more, 7 in 10 adult Americans who make calls while traveling abroad are “very” or “extremely” interested in the idea of being reachable at a single phone number (72 percent), a convenience AT&T Wireless offers its customers who use GSM devices, such as its “world phones.”

*Below are the new, reduced rates for customers who purchase AT&T Wireless’ Enhanced Discounted International Dialing service at $3.99 per month. Rates are in addition to airtime or roaming charges, and a surcharge for calls to wireless numbers may also apply. Consumers interested in further information may phone 1-800-363-4235, visit an AT&T Wireless retail location, or view the company’s web site at www.attwireless.com.

Enhanced Discount International Pricing

COUNTRY /CURRENT PRICE / NEW PRICE*

Argentina / $0.34 / $0.18

Australia** / $0.19 / $0.07

Brazil** / $0.34 / $0.14

China** / $0.23 / $0.13

Colombia** / $0.34 / $0.17

Dominican Republic** / $0.34 / $0.18

Ecuador** / $0.50 / $0.29

El Salvador / $0.34 / $0.24

France / $0.19 / $0.07

Germany** / $0.19 / $0.07

Greece / $0.19 / $0.07

Guatemala / $0.34 / $0.24

Honduras / $0.55 / $0.37

Hong Kong** / $0.19 / $0.09

India / $0.45 / $0.32

Ireland** / $0.19 / $0.07

Israel** / $0.19 / $0.09

Italy** / $0.19 / $0.07

Jamaica / $0.49 / $0.34

Japan / $0.19 / $0.07

Korea, South / $0.19 / $0.08

Mexico** / $0.20 / $0.09

Philippines** / $0.25 / $0.17

Poland** / $0.30 / $0.19

Spain** / $0.19 / $0.07

Taiwan** / $0.19 / $0.06

Turkey / $0.47 / $0.36

U.K.** / $0.15 / $0.06

Venezuela** / $0.50/ $0.20

Vietnam / $0.69 / $0.54

** Indicates availability of international text messaging service

About AT&T Wireless

AT&T Wireless (NYSE: AWE) is the second-largest wireless carrier, based on revenues, in the United States. With revenues of more than $16.5 billion over the past four quarters and 21.855 million subscribers as of September 30, 2003, AT&T Wireless delivers advanced high-quality mobile wireless communications services, voice and data, to businesses and consumers, in the U.S. and internationally. For more information, please visit us at www.attwireless.com.

Methodology

This survey was conducted online by Harris Interactive within the U.S. between Nov. 6 and 25, 2003 among a nationwide cross section of 1,413 adults (aged 18+). Figures for age, sex, race/ethnicity, education, region and income were weighted where necessary to bring them into line with their actual proportions in the population.

Although this online survey is not a probability sample, in theory, with probability samples of this size, one could say with 95 percent certainty that the results have a statistical precision of plus or minus 3.4 percentage points of what they would be if the entire adult population had been polled with complete accuracy.

About Harris Interactive®

Harris Interactive (www.harrisinteractive.com) is a worldwide market research and consulting firm best known for The Harris Poll®, and for pioneering the Internet method to conduct scientifically accurate market research. Headquartered in Rochester, New York, U.S.A., Harris Interactive combines proprietary methodologies and technology with expertise in predictive, custom and strategic research. The Company conducts international research through wholly owned subsidiaries—London-based HI Europe (www.hieurope.com) and Tokyo-based Harris Interactive Japan—as well as through the Harris Interactive Global Network of local market- and opinion-research firms, and various U.S. offices. EOE M/F/D/V.

This press release contains “forward-looking statements” which are based on management’s beliefs as well as on a number of assumptions concerning future events made by management with information that is currently available to management. Forward-looking statements may include, without limitation, management’s expectations regarding: our future financial and operating performance and financial condition, including the company’s outlook for the fiscal year 2003 and subsequent periods; subscriber growth; industry conditions; the strength of our balance sheet; our liquidity and needs for additional financing; and our ability to generate positive free cash flow.

Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside AT&T Wireless’ control, that could cause actual results to differ materially from such statements. Without limitation these factors include: the risks associated with the implementation of our technology migration strategy, our ability to continue to reduce costs and increase the efficiency of our distribution channels, the potential competitive impacts of industry consolidation or alternative technologies, potential impacts on revenue and ARPU from competitive pricing and slowing penetration in the wireless industry, the effects of vigorous competition in the markets in which we operate, the risk of decreased consumer spending due to softening economic conditions, acts of terrorism, and consumer response to new service offerings.

For a more detailed description of the factors that could cause such a difference, please see AT&T Wireless’ filings with the Securities and Exchange Commission, including the information under the heading “Additional Factors That May Affect Our Business, Future Operating Results and Financial Condition” and “Forward Looking Statements” in its quarterly report on Form 10-Q filed on November 14, 2003.

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Contact:

Rochelle Cohen

908-696-4217 (office)

973-615-8135 (wireless)

or

June Rochford

908-696-4228 (office)

908-672-0190 (wireless)

AT&T Wireless cuts rates on calls to 30 Countries