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UPDATED: Breaking News: AT&T to purchase T-Mobile USA for $39 billion

Written by Andre Yoskowitz (Google+) @ 20 Mar 2011 14:35 User comments (13)

UPDATED: Breaking News: AT&T to purchase T-Mobile USA for $39 billion AT&T has announced today that it will purchase T-Mobile USA from parent Deutsche Telekom for $39 billion, in a cash and stock transaction.
With the major acquisition, AT&T will add a significant amount of market share and better compete against Verizon, the market leader in the U.S. for mobile phone users.

AT&T says it will expand its 4G LTE to 95 percent of the American population, an additional 46.5 million people.

Says AT&T CEO Randall Stephenson:

This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation’s future. It will improve network quality, and it will bring advanced LTE capabilities to more than 294 million people. Mobile broadband networks drive economic opportunity everywhere, and they enable the expanding high-tech ecosystem that includes device makers, cloud and content providers, app developers, customers, and more. During the past few years, America’s high-tech industry has delivered innovation at unprecedented speed, and this combination will accelerate its continued growth.

This transaction delivers significant customer, shareowner and public benefits that are available at this level only from the combination of these two companies with complementary network technologies, spectrum positions and operations. We are confident in our ability to execute a seamless integration, and with additional spectrum and network capabilities, we can better meet our customers’ current demands, build for the future and help achieve the President’s goals for a high-speed, wirelessly connected America.


The carrier promises that both companies will see improved voice quality "as a result of additional spectrum, increased cell tower density and broader network infrastructure."

AT&T is now the sole GSM carrier in the U.S. (if it passes regulatory anti-monopoly hurdles), controlling all the bands. AT&T has 95.5 million wireless subscribers and T-Mobile has 33.7 million subscribers, so the new entity will have at least 129.2 million subscribers. Verizon Wireless has 94.1 million wireless customers.

Updated: It seems that if the deal does not get FCC approval, then AT&T will pay T-Mobile a $3 billion "breakup fee," give them some AWS spectrum it does not need, and give T-Mob a roaming agreement "at an agreeable price."

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13 user comments

220.3.2011 14:52

Lol I read...
'AT&T to purchase T-Mobile USA for $39'!!


:/

320.3.2011 15:32

This would be great news if it April 1st.

I couldn't find anything that said the merger was approved by shareholders and/or the FCC but I doubt either one would block this. :-(


"The only people who should buy Monster cable are people who light cigars with Benjamins." - Gizmodo

420.3.2011 15:37

A victory for the dark side of the Force ? :(

Analysts doubts:
It would lead to higher prices, fewer choices and less innovations....
http://bit.ly/giUqJo

This message has been edited since its posting. Latest edit was made on 21 Mar 2011 @ 5:11

Live Free or Die.
The rule above all the rules is: Survive !
Capitalism: Funnel most of the $$$ to the already rich.

520.3.2011 16:06

Originally posted by Pop_Smith:
This would be great news if it April 1st.

I couldn't find anything that said the merger was approved by shareholders and/or the FCC but I doubt either one would block this. :-(
Hey Pop, looks to me that FCC approval will take up to 12 months before this deal can be passed (if it does get approved at all). It isn't over yet but I can't remember the last time the feds shut anything down for anti-monopoly, especially since AT&T has promised $8 billion of spending on bringing LTE to rural areas (which is what Obama wants).

We shall see.

620.3.2011 16:08

the call phone market is almost a two company monopoly not much longer and it will happen

720.3.2011 16:31

Guess that will be the end of my unlimited data plan and good prices at T-Mobile.

Verizon and AT&T are getting closer and closer to making the cell phone market a duopoly. I refuse to pay over $100 per month just to own a smartphone so if this merger gets approved then I will be heading to Sprint.

820.3.2011 22:03

I hate At&T, Tmobile and verizon, There coverage, prices and customer service all are terrible, and thats why I switched to sprint

921.3.2011 1:05

Originally posted by shummyr:
I hate At&T, Tmobile and verizon, There coverage, prices and customer service all are terrible, and thats why I switched to sprint
LoL...you must live in one of 2-3 cities worldwide where Sprint is better in any area than all three of those companies. Verizon just took the JD Power Award, and for good reason...Sprint was at the bottom of the list in almost every area and category.

Well, I was planning on switching to T-Mobile as soon as they completed the network update, but it seems that I am stuck on Verizon a while longer before a new kid shows up and smacks AT&T and Verizon around a little.


1021.3.2011 3:30
morean51
Inactive

Is it then thats a good news to hear


morean51

1121.3.2011 15:17
lissenup2
Inactive

This COULD be good but would probably be bad. Prices could go up or down but like I said.........probably up. Say goodbye to T-Mobile's JD Power and Assoc. #1 customer service rating.

I don't believe this will happen though. FCC and DOJ must approve and this will become an essential duopoly with highly monopolistic attributes.

I just hope it doesn't happen. ATT and Verizon are both dramatically overpriced.

1221.3.2011 18:09

This article ruined the week for me, horrible news. I have been a happy T-Mobile customer since 2002 and I can only hope this does not happen. Verizon sucks (I have Verizon at work), ATT has fast internet but bad customer service, Verizon has good cell phone coverage, very very slow internet and horrible customer service. I can only hope if this does happen it takes over a year and by then Apple has a 64gb dual core phone out, because otherwise I will hope my Samsung Vibrant will work on the newly merged network as I can't find many phones out there that have 48gb of storage space like my Vibrant currently has!

1326.3.2011 14:33

AT&T can suck it.

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