For Immediate Release
April 25, 2001
Bellevue, WA - (April 25, 2001) - Today, VoiceStream Wireless Corp. [NASDAQ: VSTR] announced that the Federal Communications Commission (FCC) has granted approval of VoiceStream's applications to transfer control of its spectrum licenses to Deutsche Telekom AG [NYSE: DT]. The FCC also approved similar applications submitted by Powertel Inc. [NASDAQ: PTEL] and Deutsche Telekom. Following the mergers, it is anticipated that Deutsche Telekom will include VoiceStream and Powertel in Deutsche Telekom's T-Mobile group of wireless companies.
In its announcement today, the FCC noted that, "U.S. consumers will benefit from the effects of the proposed merger, which will include the build-out and extension of VoiceStream's network - significantly expanding VoiceStream's national and international reach. U.S. consumers also will benefit from the resulting increase in competition in mobile services, including new communications services and new features."
John Stanton, chairman and CEO of VoiceStream, stated "The American wireless consumer wins under today's announcement by the FCC. The FCC announcement paves the way for final approval of the combination of VoiceStream and Deutsche Telekom, along with Powertel, that will enable VoiceStream to accelerate its build-out of existing and new markets, speed the deployment of advanced wireless services and products to consumers and businesses, and continue to offer wireless services that are among the most competitively priced and highest quality available in the United States."
"Combined, VoiceStream, Powertel and Deutsche Telekom will be able to offer expanded seamless services to customers, using the same technology platform - GSM. VoiceStream and Powertel, as members of the T-Mobile family of wireless companies, will be in a very strong position to move forward as a leading national wireless competitor and a leader in providing advanced high-speed always-on GPRS wireless data services that customers want and will use," Stanton added.
As expected, the FCC conditioned its approval on compliance with standard reporting and other routine requirements applicable to these types of transactions and the separate written agreement reached among DT, VoiceStream, the Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI), addressing national security, law enforcement, and public safety issues raised in this proceeding by the FBI and DOJ. The proposed mergers remain under review by the Committee on Foreign Investment in the United States (CFIUS) and are subject to customary closing conditions. VoiceStream and Powertel stockholders approved their merger agreements with Deutsche Telekom on March 13, 2001. Based on the current regulatory process, VoiceStream anticipates the merger will close on May 31, 2001.
About VoiceStream Wireless
Based in Bellevue, WA, VoiceStream Wireless Corp. (NASDAQ:VSTR) is a leading provider of digital wireless communications services in the United States. VoiceStream and its affiliates have licenses or pending licenses to provide service to more than 272 million people, representing 97 percent of the U.S. population. VoiceStream uses and operates the Global System for Mobile (GSM) communications technology platform. Adopted by 165 countries, GSM accounts for approximately 70 percent of the total digital wireless market. VoiceStream is the only U.S. wireless telecommunications provider with a national GSM wireless technology network, which gives customers the choice of using their VoiceStream number when traveling internationally and supports roaming capabilities for other GSM customers traveling to the United States. For more information, go to www.voicestream.com.
About Deutsche Telekom
Deutsche Telekom is Europe's largest communications company and one of the largest communications carriers worldwide based on 2000 revenues of 40.9 billion euros ($38.6 billion). Through T-Mobile, Deutsche Telekom's mobile telephony subsidiary, Deutsche Telekom serves more than 45 million mobile telephony customers worldwide. Deutsche Telekom offers its customers a complete range of fixed-line voice telephony products and services through approximately 50 million access lines. Deutsche Telekom is a leading provider of high-speed digital access lines with approximately 850,000 new asymmetric digital subscriber line (T-DSL) services currently sold and more than 18 million channels using the information transfer standard ISDN (Integrated Services Digital Network). In online services, T-Online is Europe's largest Internet provider with more than 8.5 million subscribers. In January 2001, Deutsche Telekom launched T-Systems, Europe's second-largest provider of comprehensive IT and telecommunications services to business customers in more than 20 countries. For more information about Deutsche Telekom, visit http://www.telekom.de/international.
About Powertel
Powertel, Inc. provides 100 percent digital PCS wireless services in its licensed service area in 12 states in the Southeast - one of the largest contiguous PCS networks in the southeastern United States. Through its affiliation with other GSM carriers, Powertel's coverage extends across the United States to most major cities and into much of Canada to a population of more than 260 million people. Powertel's core markets are in 34 southeastern metropolitan areas and along the major highway corridors that connect them. Athens, Atlanta, Augusta, Columbus, Birmingham, Chattanooga, Jackson, Jacksonville, Knoxville, Lexington, Louisville, Macon, Memphis, Nashville and Savannah are among the municipalities in Powertel's licensed service area, which has a population of more than 25 million people. For more information on Powertel and its products and services, visit the company on its web site at: http://www.powertel.com
Except for the historical and factual information presented, other information set forth in this news release represents forward-looking statements, including all statements about companies' plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: appropriate regulatory approval; conditions in the capital markets and availability of future financing; changes in the overall economy; changes in competition in the markets in which the companies operate; changes in the telecommunications regulatory environment; pending and future litigation; unanticipated changes in growth in cellular and PCS customers, penetration rates, churn rates and the mix of products and services offered. Investors are encouraged to consider these and other risks and uncertainties that are discussed in documents filed by VoiceStream Wireless Corporation with the Securities and Exchange Commission.
Contact:
Media
Brian C. Keeter, 202-585-2216
Kim Thompson, 425-378-4074
Investors
Casey Otley, 877-853-8682
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