McCaw Cellular Communications was founded in 1983 by Craig McCaw, who had a vision to provide wireless communication services to rural areas.
Craig McCaw's early experience in the industry, having started his first company, McCaw Cellular, in 1977, laid the groundwork for his future success.
The company's first cell site was activated in 1984 in Washington state, marking the beginning of its expansion into the cellular industry.
McCaw Cellular Communications played a significant role in the development of the wireless industry, with Craig McCaw selling the company to AT&T in 1994 for $12.6 billion.
History of McCaw
In 1966, J. Elroy McCaw sold one of his cable television holdings in Centralia, Washington to his three sons, including Craig who was 16 years old at the time.
Craig took an increasingly central role in the development of McCaw Communications and grew the company from 2,000 subscribers to about $5 million in annual revenue by the early 1980s.
In 1981, Craig McCaw came across an AT&T document predicting 900,000 cellular subscribers in the US by the turn of the century.
He found that the licenses for cellular spectrum were being sold at $4.50 per "pop", allowing him to build a base for future subscribers at a very low cost.
By 1983, McCaw Communications had purchased licenses in six of the 30 largest US markets.
In 1987, Craig sold the cable business for $755 million and used this new capital to buy even more cellular licenses.
The first wave of analog cellular telephones started entering the consumer conscience around this time.
Craig's network of licenses in the major markets was used as a lever to buy, sell or trade licenses in other markets at a considerable discount.
In 1986, the company purchased MCI's wireless operations, cellular and paging, for $122 million and changed their name to "McCaw Cellular Communications".
In 1989, the company outbid BellSouth for control of LIN Broadcasting, paying $3.5 billion for licenses in Houston, Dallas, Los Angeles, and New York.
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Partnerships and Mergers
Microsoft Chairman Bill Gates and McCaw Cellular Chairman Craig McCaw joined forces to create Teledesic Corp., a global satellite network that aims to begin operating by 2001.
The venture represents one of the most expansive uses of defense technology for commercial purposes.
American Telephone & Telegraph Co. is planning to buy McCaw's company for more than $12 billion, which could provide significant support to the venture.
Cellular One
In 1990, McCaw Cellular introduced SS7 signaling across their network, revolutionizing the way cellular networks operated. This allowed for seamless roaming across the country.
The new system, called "Cellular One", tied the entire network together into a single national network. This meant that customers could make and receive calls anywhere in the country, without worrying about being out of range.
Cellular One subscribers grew rapidly, reaching two million by 1992. This was a huge success, far exceeding AT&T's earlier projections for all cellular use in the US.
In November 1992, AT&T purchased 1/3 of McCaw Cellular for $3.8 billion. This partnership marked a significant milestone in the company's history, cementing its place as a major player in the cellular industry.
By 1992, Cellular One was generating $1.75 billion in annual revenue. This was a testament to the effectiveness of the SS7 signaling system and the growing demand for cellular services.
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Microsoft Plans Global Satellite Network
Microsoft Chairman Bill Gates is joining forces with McCaw Cellular Chairman Craig McCaw to create a new company called Teledesic Corp.
The goal is to have the company operating by 2001, which would be a massive undertaking.
Teledesic Corp. plans to build the biggest satellite network in the world, surpassing Motorola Inc.'s planned $3.3 billion Iridium system of 66 satellites.
Several governments are already backing systems like Iridium, which could make it harder for Teledesic Corp. to succeed.
American Telephone & Telegraph Co. is planning to buy McCaw's company for over $12 billion, which could provide Teledesic Corp. with a significant boost.
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The Big Deal
Microsoft Chairman Bill Gates and McCaw Cellular Chairman Craig McCaw are teaming up to launch a new company called Teledesic Corp.
Their ambitious project involves creating a global satellite network that's expected to begin operating by 2001.
The venture represents one of the most expansive uses of defense technology for commercial purposes.
Teledesic Corp. aims to create the biggest satellite network in the world, surpassing Motorola Inc.'s planned $3.3 billion Iridium system of 66 satellites.
American Telephone & Telegraph Co. is planning to buy McCaw's company for more than $12 billion.
McAaw and AT&T
McCaw and AT&T had a significant partnership.
In 1994, AT&T acquired McCaw Cellular Communications, a deal worth $11.5 billion.
This partnership marked a major milestone in the history of McCaw Cellular Communications.
The acquisition gave AT&T a substantial boost in its wireless business, expanding its reach and capabilities.
The partnership also paved the way for AT&T to become a major player in the telecommunications industry.
On a similar theme: AT&T
Frequently Asked Questions
How did Craig McCaw make his money?
Craig McCaw made his money by buying up licenses in the rapidly growing cellular telephone market. He leveraged this strategic investment to build his fortune.
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