Why is ATTWS signing contracts through 2008 ?

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Robert M. - 09 Apr 2004 11:31 GMT

By this time next year there likely won't be an AT&T Wireless as we know
it. But the brilliant folks there that ran it into the ground so fast
they had to sell it off at half price (relative to IPO price);
are busy signing a long term contract for their CRM (Customer Relations
Management) software. And we all know how bad that is. In fact its the
same folks that give SprintPCS trouble with its CRM.

Convergys renews AT&T Wireless pact
By Mike Tarsala, CBS.MarketWatch.com
Last Update: 10:24 AM ET April 8, 2004

SAN FRANCISCO (CBS.MW) -- Convergys said Thursday that it has extended a
software and services contract agreement with AT&T Wireless, its largest
customer, through 2008.

AT&T Wireless had previously been a customer for Convergys' billing and
customer care software under a contract that ran through the same time
period. Convergys did not disclose financial details, and would not say
if AT&T Wireless gets a price break under the new deal.

"We're very pleased to be maintaining the relationship with AT&T
Wireless," said Larry Schwartz, Convergys' executive vice president of
global operations. "Convergys (CVG: news, chart, profile) has been
putting a lot of energy into its real-time billing software, and the
company is starting to see more validation from Tier 1 customers."

In February, the company recently retained business from phone services
giant Sprint (FON: news, chart, profile), under a subcontracting deal
with IBM (IBM: news, chart, profile).

Convergys shares rose 24 cents, or 1.5 percent, to $16 in early trading.
The stock is down from more than $20 in October 2003.

In early 2003, AT&T Wireless (AWE: news, chart, profile) began a search
for possible alternatives to using Convergys for billing and customer
care. Analysts had been concerned in recent months that the loss of AT&T
Wireless as a customer could hurt Convergys' earnings, since the
wireless company makes up about 20 percent of the software maker's
revenue.

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SpiceBall - 11 Apr 2004 15:53 GMT

Pretty simple: what if the merger doesn't get approved or doesn't go
through??

We are all ASSUMING this merger will take place and happen, but there
is a chance it won't. This isn't the merger of two farming companies
folks, this is a regulated utility by the FCC.

Should AT&T Wireless just fall to pieces if it doesn't happen?/

> By this time next year there likely won't be an AT&T Wireless as we know
> it. But the brilliant folks there that ran it into the ground so fast
[quoted text clipped - 35 lines]
> wireless company makes up about 20 percent of the software maker's
> revenue.

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ben skversky - 11 Apr 2004 20:54 GMT

A good & sensible reply.

> Pretty simple: what if the merger doesn't get approved or doesn't go
> through??
[quoted text clipped - 44 lines]
> > wireless company makes up about 20 percent of the software maker's
> > revenue.

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John S. - 12 Apr 2004 00:47 GMT

>Pretty simple: what if the merger doesn't get approved or doesn't go
>through??

It's not a merger, it's a buy out and for the most part, no "approval" is
needed. It's basically a done deal. Only some of the minor points are being
discussed.

--
John S.
e-mail responses to - john at kiana dot net

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SpiceBall - 12 Apr 2004 21:53 GMT

Buyout or Merger, Antitrust Watches, DOJ, and FCC will be watching and
can intervene at any time.

Furthermore, Cingular can withdraw it's 'bid' (and pay a fee I
presume) if something happens down the line. Companies perform
independently until things are finalized and stock swaps are
performed. What if T-mobile comes along and offers 60 billion for
AT&T? That can dissolve this too.

> >Pretty simple: what if the merger doesn't get approved or doesn't go
> >through??
>
> It's not a merger, it's a buy out and for the most part, no "approval" is
> needed. It's basically a done deal. Only some of the minor points are being
> discussed.

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John S. - 12 Apr 2004 23:53 GMT

>Furthermore, Cingular can withdraw it's 'bid' (and pay a fee I
>presume) if something happens down the line. Companies perform
>independently until things are finalized and stock swaps are
>performed. What if T-mobile comes along and offers 60 billion for
>AT&T? That can dissolve this too.

The offer has been made and accepted. It's a done deal!

--
John S.
e-mail responses to - john at kiana dot net

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Steve - 13 Apr 2004 14:37 GMT

> >Furthermore, Cingular can withdraw it's 'bid' (and pay a fee I
> >presume) if something happens down the line. Companies perform
[quoted text clipped - 3 lines]
>
> The offer has been made and accepted. It's a done deal!

Ok genius. Remember part of the agreement that Cingular had with AT&T
is that they conduct "business as usual". Nothing about this is a done
deal until there is no more ATTWS. They are still 2 seperate companies
and will continue go their own thing until this deal is done. Oh yeah
Robert, why do you have to be a douche all the time whine about things
that dont matter? You are one angry little man.

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Robert Nicholson - 23 Apr 2004 16:19 GMT

Dude if they did nothing to Microsoft what makes you think anything
ATT&WS does would be of any interest?

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