As expected, Cingular Wireless and T-Mobile USA have agreed to end a network sharing partnership. We first noted this on May 18th, but the news officially came out today. The agreement to end the partnership hinges on Cingular’s takeover of AT&T Wireless. The thought is that once Cingular controls the AT&T Wireless network, they will no longer need help from T-Mobile.

However, all is not lost for T-Mobile. Cingular will sell its California and Nevada
network and certain California and Nevada spectrum to T-Mobile USA for
approximately $2.5 billion.