SAN ANTONIO -- SBC Communications Inc. (NYSE:SBC):
Company Will Make Wi-Fi Available at Hundreds of Caribou Coffee Stores, the Nation's Second-Largest Specialty Coffee Chain Roaming Agreements with Concourse, Telmex, Wise Technologies, GoRemote, iPass, Syniverse Will Augment SBC Wi-Fi Footprint, Create New Revenue Opportunities
SBC Communications Inc. (NYSE:SBC) today announced a series of agreements that will significantly expand the Wi-Fi service coverage area for SBC FreedomLink customers and allow customers from other providers to access the extensive SBC network of Wi-Fi hot spots.
The agreement with Caribou Coffee will transform its 300 coffee shops into Wi-Fi hot spots, further expanding the SBC FreedomLink Wi-Fi network by enabling customers to access the FreedomLink service at coffee houses in Illinois, Ohio, Michigan, Wisconsin, Minnesota, Georgia, North Carolina, Virginia, Maryland and the District of Columbia.
Adding Caribou Coffee stores to the SBC Wi-Fi network will further diversify the types of locations where the FreedomLink Wi-Fi service is available and will make the service even more appealing to a broad cross-section of business professionals and consumers, including business travelers, mobile workers, college students, and the nearly 4 million SBC DSL Internet access customers. Monthly SBC FreedomLink memberships are available for $19.95 and provide unlimited access to all FreedomLink hot spots. Daily sessions are also available for $7.95 and provide unlimited access to FreedomLink hot spots for 24 hours. Deployment of FreedomLink service in the 300 Caribou Coffee stores will begin in August and is expected to be complete by January 2005.
And in a move that is critical to the widespread adoption of Wi-Fi, SBC companies have formed reciprocal roaming agreements that will allow FreedomLink customers to roam onto Wi-Fi networks operated by Concourse Communications, Telmex (the company's first international roaming agreement) and Wise Technologies at reduced rates. Customers from these companies will also be able to roam onto the nearly 2,000 FreedomLink Wi-Fi hot spots. Many of the providers' hot spots are in high-traffic venues such as airports, and SBC FreedomLink customers will pay only $4 per daily session.
The agreements complement an earlier roaming agreement that SBC companies formed with Wayport Inc. that lets SBC customers access more than 1,000 Wayport hot spots, including airports and hotels.
Key venues where SBC FreedomLink customers can access Wi-Fi at a reduced rate through the new roaming agreements include:
--Concourse Communications: JFK, LaGuardia, Newark, Detroit and Minneapolis/St. Paul airports.
--Telmex: More than 400 venues in Mexico including more than 200 restaurants, 20 airports, 20 malls, 20 universities, 70 hotels and nearly 10 hospitals.
--Wise Technologies: Baltimore, San Diego, Miami, Anchorage, Omaha, West Palm Beach, Chattanooga and El Paso airports and retail locations.
Beyond the three reciprocal roaming agreements, SBC companies have also signed in-bound roaming agreements with GoRemote, iPass and Syniverse Technologies, companies that offer global connectivity services, including Wi-Fi, to enterprise customers with millions of potential end users. GoRemote, iPass and Syniverse have similar agreements with other WI-Fi providers and offer their customers access to a collection of hot spots operated by third-party Wi-Fi providers. iPass operates the world's largest roaming network with access to more than 10,000 active Wi-Fi hotspots. Customers from the more than 300 wireless operators and Wi-Fi services providers worldwide that partner with Syniverse will benefit from roaming access to the FreedomLink network.
The agreements will generate additional revenue for SBC companies by making FreedomLink hot spots available to the millions of potential Wi-Fi users these companies reach. SBC companies will receive revenue whenever GoRemote, iPass and Syniverse customers roam onto the FreedomLink network.
SBC companies expect to have all the roaming agreements activated by the end of the year.
"The agreement with Caribou Coffee further diversifies the type of locations where our service is available, and the roaming agreements help augment the extensive Wi-Fi deployment we've undertaken," said Ray Wilkins, group president- SBC marketing & sales. "These are important steps in making our service more widely available to consumers and business users. We believe that our extensive Wi-Fi footprint, our diversity of locations and our affordable pricing will make the FreedomLink service the most attractive Wi-Fi offering on the market."
The agreements follow other major steps the company is taking to make SBC FreedomLink service more widely available, including making it possible for FreedomLink customers to access Wi-Fi at many McDonald's restaurants and The UPS Store locations.
The SBC FreedomLink service enables customers to use laptop computers and personal digital assistants to wirelessly connect to the Internet and corporate networks at speeds 50 to 100 times faster than a dial-up connection. FreedomLink high-speed wireless Internet access is a strategically significant service that further strengthens the SBC bundling strategy, generates incremental revenue and improves the company's ability to attract and retain customers.
Later this year, FreedomLink service will be bundled with SBC Yahoo! DSL and offered at a significant discount to SBC Yahoo! DSL subscribers, further enhancing the value and benefits of their broadband service. In addition, the SBC sales organization will offer monthly memberships in bulk to enterprise customers who wish to use the power of Wi-Fi to improve employee productivity.
The FreedomLink service is part of an integrated effort to meet customer demand for a comparable broadband experience in the home, office or on the road. To meet this goal, SBC companies plan to make available more than 20,000 Wi-Fi hot spots to FreedomLink customers by the end of 2006 and work with Cingular Wireless to use Wi-Fi and Cingular's wireless network to deliver unprecedented coverage that enables customers to enjoy a comparable broadband experience at home, in the office and on the road.
SBC companies are conditioning the market for the FreedomLink Wi-Fi service by driving adoption of private wireless local area networks (LANs) in enterprises and in the home. SBC companies are selling more than 3,000 home Wi-Fi gateways a day to SBC Yahoo! DSL customers who wish to set up a wireless LAN in their home.
Customers can view a list of FreedomLink locations and obtain ordering information by visiting www.sbc.com/freedomlink.
FreedomLink(SM) wireless connection to the Internet provided by SBC Internet Services. SBC, the SBC logo, FreedomLink(SM) and the FreedomLink(SM) logo are trademarks or service marks of SBC Knowledge Ventures, L.P. (C) 2004 SBC Knowledge Ventures, L.P. All rights reserved.
SBC Communications Inc. (NYSE: SBC) is a Fortune 50 company whose subsidiaries, operating under the SBC brand, provide a full range of voice, data, networking, e-business, directory publishing and advertising, and related services to businesses, consumers and other telecommunications providers. SBC holds a 60 percent ownership interest in Cingular Wireless, which serves more than 24 million wireless customers. SBC companies provide high-speed DSL Internet access lines to more American consumers than any other provider and are among the nation's leading providers of Internet services. SBC companies also now offer satellite TV service. Additional information about SBC and SBC products and services is available at www.sbc.com.
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