OKLAHOMA CITY, Nov. 20, 2003 (PRIMEZONE) -- Dobson Communications Corporation (Nasdaq:DCEL) today announced that it has awarded approximately $10 million in contracts to support the overlay of its Alaska markets with 2.5-generation GSM/GPRS/EDGE technology. The GSM/GPRS/EDGE overlay is scheduled for completion by mid-2004. The Company plans to start selling GSM/GPRS wireless phones and other handsets in its Alaska markets in the second quarter next year, starting with the Anchorage market.
Dobson announced that it also plans to invest another $3.5 million next year in Alaska to enhance further the capacity and efficiency of its statewide wireless network.
With this capital expenditure, Dobson will have invested approximately $24 million in Alaska in 2003 and 2004 to improve wireless service statewide. In 2003 the Company's upgrades included installing a new telecommunications switch in Anchorage, installing 15 new cell sites in Anchorage and Alaska Rural Service Area (RSA) 2, and increasing network capacity throughout its coverage areas in Anchorage, AK RSA 1 (Fairbanks), AK RSA 2 and AK RSA 3 (Juneau).
Dobson chose Ericsson (Nasdaq:ERICY) to supply the GSM/GPRS base station infrastructure for its Alaska project and Nortel Networks (NYSE:NT) to supply the new GSM/GPRS telecommunications switch in Anchorage.
Dobson currently offers TDMA (Time Division Multiple Access) wireless service to markets that encompass 92 percent of the Alaskan population. Dobson also offers wireless services in 15 other states from New York to Arizona, and from Texas to Minnesota.
With the overlay of the new technologies, Dobson will be the first telecommunications provider to offer voice services on GSM (Global System for Mobile Communications) and high-speed data services on GPRS (General Packet Radio Service) on a wireless network throughout Alaska. Enhanced Data for GSM Evolution (EDGE) is a software enhancement that supports high-speed data communications.
"Dobson's GSM/GPRS overlay in Alaska will bring an entirely new universe of wireless services and value to the Alaska market," said Tim Duffy, senior vice president and chief technical officer for Dobson. "The biggest change will be in terms of wireless data services -- by mid-2004, we plan to be selling throughout Alaska the latest voice/data devices and picture phones, which will allow customers to receive e-mails and Internet-based services on their wireless handsets.
"This investment demonstrates Dobson's commitment to dramatically improve the coverage and capabilities of our wireless network in Alaska to better serve customers throughout the state," he said.
Dobson has served wireless customers in the Fairbanks and Juneau areas since 2000, and in June 2003 acquired its ownership in the Anchorage Metropolitan Service Area and Alaska RSA 2 from AT&T Wireless. Based on its market share in these four markets, Dobson is now the largest wireless services provider in Alaska, operating under the CellularOne(TM) brand.
About Dobson Communications
Dobson Communications is a leading provider of wireless phone services to rural markets in the United States. Headquartered in Oklahoma City, the Company owns wireless operations in 16 states, with markets covering a population of 11.1 million. The Company serves 1.6 million customers. For additional information on the Company and its operations, please visit its Web site at http://www.dobson.net.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These include, but are not limited to, statements regarding Dobson's plans, intentions and expectations. Such statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, but are not limited to, adverse events affecting or delaying the Company's overlay of its networks with GSM/GPRS technology. A more extensive discussion of the risk factors that could impact these areas and Dobson's overall business and financial performance can be found in Dobson's reports filed with the Securities and Exchange Commission. Given these concerns, investors and analysts should not place undue reliance on forward-looking statements.