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AT&T Re-Enters Wireless Market: Page 2 of 2

Specifically, the company said it would add wireless services to its OneRate local and long-distance bundles and its CallVantage voice-over-IP (VoIP) service. The company said that, in the next 18 months, it also will provide handsets that can connect either to Wi-Fi VoIP systems and the cellular network.

AT&T will create its own content and applications for its customers and provide its own support.

The company said in its statement that its deal with Sprint PCS is non-exclusive and will lead to the two companies competing with each other "without restrictions." Besides selling the wireless service under its own name, AT&T also will brand handsets and establish its own relationships with handset vendors, it said.

The companies released no financial details about the deal.