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Dialing For Dollars
By Christine Y. Chen

(FORTUNE Magazine) – Ruben "Velvet Teddy Bear" Studdard may be Fox's newest American Idol, but he's not the only winner. So is AT&T Wireless. Viewers could vote wannabe pop stars off the show with a phone call, but only AT&T mobile customers could avoid clogged phone lines and vote via text-message--as host Ryan Seacrest seemed to exhort every five seconds. During the 18-week season, more than five million text votes were cast, at 10 cents apiece.

That won't cover the rumored $20 million AT&T paid to sponsor the show. But when British cellphone operator mm02 struck a similar deal to let U.K. customers vote residents off Big Brother, average revenue per user rose nearly 2% during the show's final month of June 2002. Analysts say the bump should be similar stateside. And with 38 million viewers tuning in for Idol's finale, the buzz factor is huge. "It's a double-whammy," says Ben Reneker, an analyst at research firm Kagan World Media. "AT&T Wireless gets more brand awareness and incremental revenue down the line. I imagine they're all jumping out of their chairs for joy." And undoubtedly belting "Ain't No Stoppin' Us Now." --Christine Y. Chen