Rumor Mill: Cingular scaling back its 3G plans

Financial analysts speculate that Cingular Wireless is pulling back on its plans to deploy an HSDPA 3G network. While Cingular spokespeople continue to deny these rumors, Deutsche Bank analysts Brian Modoff, Jonathan Goldberg, and Vijay Doradla yesterday wrote that a recent investigation of Cingular's equipment partners and other sources leads them to suspect that Cingular is planning to add 3G to only 12 to 15 cities.

The analysts conclude that Cingular is simply over-committed right now and does not have the resources to meet its original 3G schedule. If Cingular is scaling back its 3G plans, it could lose even more ground to rival Verizon Wireless, which launched 3G in the US at the end of 2003. Verizon is aggressively building out its EV-DO network and will likely remain the US 3G market leader, especially if Cingular pulls back on its 3G plans.

For more on the Cingular 3G rumors:
- read this report form CNET

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