You've probably seen the ads by now with T-Mobile mocking AT&T's network. Well, T-Mobile must have decided that it wasn't that bad after all, as AT&T and Deutsche Telekom AG announced today that the two companies entered into a definitive agreement under which AT&T will acquire T-Mobile USA from Deutsche Telekom in a cash-and-stock transaction. The valued price tag? Just a mere $39 billion. The agreement was approved by the Boards of Directors of both companies.
According to the press release, the deal will provide an optimal combination of network assets to add capacity sooner than any alternative, as well as providing an opportunity to improve network quality in the near term for both companies' customers. It will also provide a fast, efficient and certain solution to the impending exhaustion of wireless spectrum in some markets, which can hinder both companies' chances to meet the ever increasing demand of mobile broadband.
"This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation's future," notes Randall Stephenson, AT&T Chairman and CEO. "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."
He continues, "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."
As part of the deal, Deutsche Telekom will receive an equity stake in AT&T that, based on the agreement terms, would give Deutsche Telekom an ownership interest in AT&T of about 8 percent. Also, a Deutsche Telekom representative will join the AT&T Board of Directors.
According to the agreement conditions, the acquisition will be subject to the usual regulatory approvals, and is expected to close in about 12 months.
AT&T will be holding a live video and audio webcast presentation tomorrow at 8 a.m. EST regarding its plans to acquire T-Mobile USA.
For more about the deal, check out www.MobilizeEverything.com which includes details on background information as well as factsheets.
What say you, readers? Do you like the deal? Don't like it? Feel free to leave your take below!
via Business Insider
Follow this article's author, Matthew Tilmann on Twitter
(Image via connectedplanetonline.com)
acad2kman
March 21, 2011 at 3:14pm
Glad to get more cell tower coverage in the West Bay - SF area. Should fix a lot of customer complaints about lack of coverage since the Stupidvisors who run San Francisco City and County make it nearly impossible to add cell towers. Takes more than THREE YEARS to get approval for this kind of network improvement. In Austin, Texas it takes THREE WEEKS.
GO ATT and work around these idiots here in the West Bay and SF area. Lots of T-Mobile towers here already, can't wait for them to come online for ATT useage. East Bay ATT coverage has always been pretty good, with 3G the rule rather than the exception for me.
dd0723
March 20, 2011 at 10:41pm
so let me get this straight, a smaller mobiel telcom makes fun of AT&T, so they buy them out for making fun of them?
Haven't we learned of the disaster when AT&T bought out cingular? anyone? anyone? Cingular's service went from Great to less than crap.
My father owns his own company and I own my own company. I always told him what way to go as far as cell service for him and his employees. He had Cingular and I told him to drop them ASAP after AT&T bought them.
He didn't listen to me and ended up paying over $1500 in fees before he canceled his business contract with them and went with verizon. He hasn't had a problem since.My emergency cellphone is currently a T-mobile prepaid phone that I might use once a year when I loose or break my current phone. I have it more for sentimental value since T-Mobile was the ONLY company working the longest when 9/11 happened, and those stranded people in NJ were using MY phone, my T-Mobile phone to call their loved ones.
I guess I'm going to have to let that phone go since AT&T has now tainted that company as well.
I'm very sad and upset about this whole situation!!
MacAddict4Life
March 21, 2011 at 1:02am
Uh, FYI, Cingular bought AT&T Wireless not the other way around. But Cingular was owned by AT&T (which had formerly sold off AT&T Wireless). AT&T Wireless had great service, much better than Cingular (I was on AT&T Wireless and my family was on Cingular at the time). When Cingular bought AT&T Wireless they elected to go with the AT&T name because it had better market reputation than Cingular, and because Cingular's parent company was AT&T, so unifying the names across the company made sense. Furthermore, after the acquisition, NO changes to anybody's plans were forced. No new terms, no new rate plans, nothing. If you were on AT&T Wireless' analog network, you eventually had to migrate to a digital GSM phone and an AT&T rate plan, but if you were on AT&T Wireless GSM service you never had to migrate and could still be on one of the old rate plans right now (though they offered some really sweet deals to tempt you off of the AT&T Wireless rate plans they wanted to drop).
Also, as of 9/11/2001 TMobile USA did not exist. VoiceSteam, which only offered service on the east coast, was the one provider that did not see a major service interruption on 9/11/2001, and that had everything to do with tower locations and the number of subscribers. It had NOTHING to do with the quality of service. VoiceStream was purchased by Deutsche Telekom sometime during 2001, and changed its name to TMobile USA in 2002 (after which it went national in the US, and join in a three-way open-roaming agreement with the two other GSM service providers that existed at the time (AT&T Wireless and Cingular).
Long story short... you don't know what you are talking about. At all.
purplemaizenjm
March 20, 2011 at 4:44pm
I think it is great idea, I will get more senior discounts on my iphone, with AT&T.
zachsterza1994
March 20, 2011 at 3:45pm
There goes my cheep prepaid plan and great phone quality. WHY AT&T! you angered thousands of iPhone users in the past. Why, must you upset t-mobile customers as well?!
D0GG
March 20, 2011 at 11:45pm
From what I have read there will be no upset for T-Mobile customers at all. AT&T intends to leave T-Mobile as it's own company. No moving of customers, no changing the data or voice plan pricing.
It will just expand the tower coverage for both companies. Because now any T-Mobile or AT&T customer has that many more towers to connect to.
