Dobson Communications announced that it has signed a new, multi-year roaming agreement with Cingular, its primary wireless roaming partner. The agreement, which would replace the existing roaming agreements with Cingular and the former AT&T Wireless entity, requires approval by the boards of directors of Dobson and Cingular to become effective and be binding on the parties.
Pending action by the two boards, Dobson is delaying its announcement of second quarter earnings results and its quarterly earnings conference call, which had been previously scheduled for 8 a.m. CT, Friday, August 5, 2005.
Dobson expects to announce its second quarter results and hold its second quarter earnings conference call on or before August 16, 2005, prior to which the companies' boards of directors are expected to vote on the new agreement. During its second quarter conference call, the Company intends to address questions regarding the new agreement as well as guidance for the remainder of 2005. When the earnings release date is rescheduled, Dobson will announce the new date and conference call details, including a new call-in phone number and access code.
If approved, the new agreement will provide a new roaming rate structure that will affect Dobson's roaming revenue and roaming expense beginning in the second quarter of 2005. If approved, the Company believes the new, consolidated roaming agreement with Cingular will be at least cash flow neutral to Dobson in 2005. There can be no assurance that the new agreement will be approved by the boards of directors of the companies.
