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AT&T to Buy T-Mobile
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| DjWoody |
AT&T to Buy T-Mobile USA for $39 Billion
BY ANDREW ROSS SORKIN AND MICHAEL J. DE LA MERCED
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http://dealbook.nytimes.com/2011/03...-39-billion/?hp
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Press Release
AT&T announced on Sunday that it agreed to buy T-Mobile USA from Deutsche Telekom, in a $39 billion deal that will reshape the cellular telephone industry.
The merger — one of the largest since the onset of the financial crisis — would combine the second and fourth largest cellular carriers in the nation, bringing together AT&T’s 95.5 million wireless subscribers with T-Mobile’s 33.7 million customers.
The transaction, which requires approval from regulators, is expected to be heavily scrutinized in Washington. The deal would leave only three major cellular carriers in the nation: AT&T, Verizon and a much smaller Sprint, which may now be forced to find a merger partner.
Already, some critics say the deal will result in higher prices for consumers. T-Mobile had offered some of the lowest rates in the county. While AT&T is expected to honor current T-Mobile contracts, it is likely that once those contracts expire, T-Mobile customers would be expected to pay AT&T’s higher rates.
Even so, AT&T’s bid will solve the problem facing T-Mobile USA, the smallest of the country’s four major cellphone service providers. Both companies operate on the same wireless standard, GSM. Through the deal, T-Mobile will finally gain a path for the next generation of cellphone data, known as 4G, by using AT&T’s forthcoming LTE standard.
“This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation’s future,” said Randall Stephenson, AT&T ’s chairman and chief executive, said in a statement.
The deal will also drive enormous cost savings. The combined company is expected to shutter retail outlets in areas where they overlap as well eliminate overlapping back office, technical and call center staff. Marketing costs could also be cut. Cellular carriers have been one of the biggest advertising spenders in the nation.
AT&T was advised by Greenhill & Company, JPMorgan Chase and Evercore Partners, as well as the law firms Sullivan & Cromwell, Arnold & Porter, and Crowell & Moring. Deutsche Telekom was advised by Morgan Stanley. |
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| theSEAN |
| so much for unlocked iPhones. |
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| DaveT |
| Doesn't help AT&T peeps. Helps current T-Mobile peeps until their contracts run out. T-Mobile (had it until Dec 2008) is terrible compared to the others. |
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| 72hrpartyanimal |
| so it's pretty much ATT vs Verizon |
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| DaveT |
| Well, Sprint might be far behind in post-post (contract) plans, but Sprint also owns Virgin Mobile USA and Boost Mobile which are doing VERY well for them. |
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| theSEAN |
| verizon's 4G LTE is working pretty well for me right now. |
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| Zombie0729 |
| i had the best Tmo plan too :( $80 a mo, unlimited, minutes, text & data. now i'm going to be forced onto a tiered data plan once my contract runs out in Oct. Sucks! |
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| rizo |
| quote: | Originally posted by Zombie0729
i had the best Tmo plan too :( $80 a mo, unlimited, minutes, text & data. now i'm going to be forced onto a tiered data plan once my contract runs out in Oct. Sucks! |
sprint still wins! $40 for unlimited mins/texts/data and another $10 for "4G". :D |
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| Nerologic |
| quote: | Originally posted by rizo
sprint still wins! $40 for unlimited mins/texts/data and another $10 for "4G". :D |
I'd be all over this if they offered the iPhone...I'm just too much of an iPhone mark to leave AT&T.
I tried the Verizon iPhone for a few weeks, but I canceled it all after noticing the net was so slow :( |
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| DjWoody |
| quote: | Originally posted by rizo
sprint still wins! $40 for unlimited mins/texts/data and another $10 for "4G". :D |
How is it that cheap? Is it a private/employee/friends & family plan? |
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| rizo |
sero premium. sero was opened to anyone a few years back. now you need an employee to hook you up.
also it used to just be $30 for sero but had to upgrade it to premium so i can get the newer smartphones. |
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| DaveT |
| And Sprint is truly unlimited. they don't cap on their post-paid (they do throttle after 5GB when using Virgin Mobile, but considering I get all the minutes I need + unlimited text & web [well, 5gb] for $25 I have no complaints. Text + Web are what's most important to me. |
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