AT&T has announced a definitive agreement to buy Deutsche Telekom’s American T-Mobile subsidiary in a cash and stock deal worth about $39 billion, and giving the German carrier an 8 percent stake in AT&T…
T-Mobile and AT&T share similar GSM and UMTS/HSPA networks, and both are working to build new next generation networks using HSPA+ and LTE. However, obtaining the rights to radio spectrum and building out these networks is both expensive and complex.
AT&T’s chief executive Randall Stephenson said the deal “provides a fast, efficient and certain solution to the impending exhaustion of wireless spectrum in some markets, which limits both companies’ ability to meet the ongoing explosive demand for mobile broadband…”
T-Mobile adds 33.7 million subscribers to AT&T’s network of of about 95.5 million, creating a total of about 130 million users, and becoming the largest American carrier. The deal will also expand Apple’s iPhone to three of what were the top four US carriers, as Apple has already brought it to Verizon earlier this year.
RTFA for the details.
Here’s their press release.
And up here in the sticks of Michigan we have a very small local company that dominates the competition. Fair prices and service – until you have to leave the three county coverage area. Then, Cha-Ching!
We Americans hold our arms open to being screwed by corporations. The people of the USA already pay more than any other country for our cellular service. In Europe many people’s plans cost $30/month nowadays with unlimited voice and messages.
I’m still on a grandfathered plan from Sprint, $35 a month (including taxes and fees) for 500 minutes, unlimited data and messages. I guess the 500 minutes is good to keep conversations short but I have gone over on rare occasions.
I think ATT’s pricing is because they are making up for all the money they used to make on land lines. Many people are replacing their land line with a cell phone.
#33 “I think ATT’s pricing is because they are making up for all the money they used to make on land lines. Many people are replacing their land line with a cell phone”.
They just went up another $8.00 per month on our basic service..Going to drop them soon..
Don’t complain here folks. Waste of time.
Take a moment to write your congressman and senators. I did.
The goal of capitalism is monopoly. Still lovin’ that unfettered free market? The breakup of AT&T under that leftist Gerald Ford (& then Carter) has been largely reversed by m&a’s post the Comm Act of 1996 under pseudo-Dem Clinton (it’s not DU if there’s no political angle).
>No way this deal will pass antitrust scrutiny.
I’m sure the people in charge for arrange for special jobs and contracts for themselves, as well as some preferred policies, like free wireless for low income people, and some affirmative action programs in parts of their business.
Another reason this deal will be greenlighted. TMobiles employees are nonunion, and the union leaders at CWA want the dues they can collect from those employees. AT&T has already agreed to endorse a union without a secret ballot.
I’ve been hearing all day on the financial channels that while this deal will take at least a year to close, they do not expect any antitrust complaints because AT&T is selling this as providing broadband wireless to 95% of the US population. This fits in well with White House proposal for universal broadband service. AT&T lawyers and lobbyists know how to word things.
From the press release:
“..AT&T commits to a significant expansion of robust 4G LTE (Long Term Evolution) deployment to 95 percent of the U.S. population to reach an additional 46.5 million Americans beyond current plans – including rural communities and small towns. This helps achieve the Federal Communications Commission (FCC) and President Obama’s goals to connect “every part of America to the digital age.” ”
So this will probably clear all hurdles (with some very minor sell-offs) with a wink from the White House.
But please take note that AT&T is promising 95% LTE coverage but says NOTHING on pricing. Unaffordable wireless broadband with low caps is essentially the same as no coverage.
My TracFone is looking better and better. $20 every 90 days, period.