AT&T to Acquire T-Mobile USA from Deutsche Telekom

Matt · 3Gstore Employee Joined: 02 Apr 2008 Posts: 1347

AT&T has announced today that they'll be entering a deal with Deutsche Telekom (T-Mobile), to acquire their network in a deal valued at $39 billion. This deal will allow them to expand capacity and make "4G" available to more markets.

Full details - AT&T to Acquire T-Mobile USA from Deutsche Telekom

tyrone · EVDO User Joined: 28 Apr 2010 Posts: 52

waynefoutz · EVDO Junkie Joined: 31 Mar 2008 Posts: 469

I don't see how this is a win for the consumer. I was a Cingular customer for years and the worst thing that ever happened to them was AT&T. I've also witnessed what AT&T did to it's mobile broadband customers with their draconian overage charges. T-Mobile doesn't have much in the way of 3g coverage, they have EDGE in most places, but at least they don't gouge you for data the way AT&T does.

I'm even more concerned about the rumored Verizon-Sprint merger. That would be a devastating blow to the consumer if that were to happen.

mclass55 · EVDO Junkie Joined: 17 Feb 2007 Posts: 165

It wont be long and there will only be AT&T and Verizon. And we will really be hit with caps.

bucrepus · EVDO User Joined: 27 Dec 2007 Posts: 66

CAPS here.. CAPS THERE.. CAPS everywhere.. and more money for them... I'm just wondering who'll buy the other out when it's all said and done in about 2 more years, Sprint will be gone, only ATT and VZ.. then probably only one...

waynefoutz · EVDO Junkie Joined: 31 Mar 2008 Posts: 469

http://www.reuters.com/article/2011/03/22/us-verizonwireless-interview-idUSTRE72L0K820110322

Verizon Wireless CEO says no interest in Sprint deal

Reuters) - The chief executive of Verizon Wireless said he has no interest in buying Sprint Nextel Corp (S.N) even as the company stands to lose its top position in the U.S. wireless market because of a merger between AT&T Inc (T.N) and T-Mobile USA.

Verizon Wireless CEO Daniel Mead also said he would not oppose AT&T's plans to buy Deutsche Telekom's (DTEGn.DE) T-Mobile USA for $39 billion.

The CEO said the company did not want to be distracted from its goal of being the most profitable U.S. wireless operator. Verizon Wireless is a joint venture of Verizon Communications (VZ.N) and Vodafone Group (VOD.L).

"We're not interested in Sprint. We don't need them," said Mead, speaking to Reuters ahead of the CTIA Wireless Conference.

AT&T announced plans on Sunday to buy T-Mobile USA in a massive deal to create a new U.S. mobile market leader.

Mead said U.S. regulators would likely approve the AT&T/T-Mobile deal if the companies agreed to certain conditions. AT&T is expected to have to sell some assets in order to get regulators to approve the deal.

"Anything can go through if you make enough concessions," Mead said.

(Reporting by Sinead Carew, writing by Lewis Krauskopf in New York; Editing by Vinu Pilakkott)

mclass55 · EVDO Junkie Joined: 17 Feb 2007 Posts: 165

Thats good news

0day · EVDO Heavy User Joined: 26 Aug 2009 Posts: 143

If what you say (AT&T vs Verizon and the CAPS) happens, then I am sure there will be Molotov cocktails flying =)

dario

Sprint Plans To Take Concerns To Congress Over AT&T, T-Mobile Deal

One party unhappy with AT&T's proposed acquisition of T-Mobile USA is taking those concerns to Congress.

Sprint Nextel CEO Dan Hesse said the company plans to submit its issues with the merger to Congress, arguing that the deal will hurt the wireless industry, according to Bloomberg News.

The deal -- worth $39 billion in cash and stock -- still needs regulatory approval. The U.S. House Judiciary committee said on Tuesday that it will hold a hearing on the takeover.

According to Hesse, if the merger goes through, AT&T and Verizon Wireless would hold 79 percent of the U.S. market -- a move that Hesse worries may stifle innovation in the industry.

On Monday, Sprint executives at a wireless industry event criticized the deal and listed the ways it could hurt the wireless industry.

"When one competitor has that much buying power they can determine the fate of different products," Fared Adib, a Sprint executive in charge of handsets, said, according to Reuters.

Sprint is not alone with its concerns about the deal. As Orn Malik over at Gigaom wrote "Who wins and who loses in this deal? It's hard to find winners, apart from AT&T and T-Mobile shareholders." He goes on to name the potential losers. The list includes consumers, phone handset makers, Sprint, Network Equipment Suppliers, and Google.

waynefoutz · EVDO Junkie Joined: 31 Mar 2008 Posts: 469

I agree with Dan Hesse for once. 79%. How do you compete with that?

alhanson

The really scary thing about this proposed merger/buy-out is the executives think they can really pull this off. Voice (phone) is measured in Minutes, Data (Internet/News) is measured in bytes, and TV (entertainment) is measured in subscriptions. It is all Data out there together on the Internet. The marketing strategy for Voice is to sell the customer way more minutes that he will ever use by scaring him with huge penalties for going over his allotment. The data is limited to carve out a new source of revenue through the subscription entertainment. This merger/buy-out will give one company a monopoly in three different industries: Phone, Internet/News, and subscription entertainment. What these Executives are planning to do is resell and repackage your 5 Gigs as phone, data, and subscription entertainment for three times the money. On a 4G network the phone is reduced to an App. Thru using HTML5 Gigabytes can be turned in Megabytes, leaving the rest to be used for subscription entertainment. Thus instead of paying 60 bucks you will be paying 180 bucks for the same 5 Gigs.
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alhanson