AT&T Wireless (NYSE:AWE) announced today that it was launching 3G wireless services in four major U.S. markets: Detroit, Phoenix, San Francisco and Seattle. The introduction of 3G service satisfies an agreement with NTT DoCoMo (NYSE:DCM), which had previously made an investment in AT&T Wireless ($9.8 billion back in 2000, corresponding to a 16 percent ownership in the operator). Insiders say that this requirement needed to be addressed in order for AT&T to proceed with the pending $41 billion merger deal with Cingular Wireless, which expects to launch its own 3G service sometime next year.
The company had planned to reach this milestone sooner, but a tough telecom environment coupled with technology glitches caused delays in the project. Despite that, AT&T anticipates to extend 3G services in Dallas and San Diego before the end of 2004.
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