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AT&T to Acquire T-Mobile USA

http://www.sys-con.com/node/1760050
Mar. 20, 2011 02:15 PM
AT&T Inc. (NYSE: T) and Deutsche Telekom AG (FWB: DTE) today announced that they have entered into a definitive agreement under which AT&T will acquire T-Mobile USA from Deutsche Telekom in a cash-and-stock transaction currently valued at approximately $39 billion. The agreement has been approved by the Boards of Directors of both companies.
AT&T’s acquisition of T-Mobile USA provides an optimal combination of network assets to add capacity sooner than any alternative, and it provides an opportunity to improve network quality in the near term for both companies’ customers. In addition, it 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.
With this transaction, 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.” T-Mobile USA does not have a clear path to delivering LTE.
“This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation’s future,” said 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.”
Stephenson continued, “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.”
Deutsche Telekom Chairman and CEO René Obermann said, “After evaluating strategic options for T-Mobile USA, I am confident that AT&T is the best partner for our customers, shareholders and the mobile broadband ecosystem. Our common network technology makes this a logical combination and provides an efficient path to gaining the spectrum and network assets needed to provide T-Mobile customers with 4G LTE and the best devices. Also, the transaction returns significant value to Deutsche Telekom shareholders and allows us to retain exposure to the U.S. market.”
As part of the transaction, Deutsche Telekom will receive an equity stake in AT&T that, based on the terms of the agreement, would give Deutsche Telekom an ownership interest in AT&T of approximately 8 percent. A Deutsche Telekom representative will join the AT&T Board of Directors.
Competition and Pricing
The U.S. wireless industry is one of the most fiercely competitive markets in the world and will remain so after this deal. The U.S. is one of the few countries in the world where a large majority of consumers can choose from five or more wireless providers in their local market. For example, in 18 of the top 20 U.S. local markets, there are five or more providers. Local market competition is escalating among larger carriers, low-cost carriers and several regional wireless players with nationwide service plans. This intense competition is only increasing with the build-out of new 4G networks and the emergence of new market entrants.
The competitiveness of the market has directly benefited consumers. A 2010 report from the U.S. General Accounting Office (GAO) states the overall average price (adjusted for inflation) for wireless services declined 50 percent from 1999 to 2009, during a period which saw five major wireless mergers.
Addresses wireless spectrum challenges facing AT&T, T-Mobile USA, their customers, and U.S. policymakers
This transaction quickly provides the spectrum and network efficiencies necessary for AT&T to address impending spectrum exhaust in key markets driven by the exponential growth in mobile broadband traffic on its network. AT&T’s mobile data traffic grew 8,000 percent over the past four years and by 2015 it is expected to be eight to 10 times what it was in 2010. Put another way, all of the mobile traffic volume AT&T carried during 2010 is estimated to be carried in just the first six to seven weeks of 2015. Because AT&T has led the U.S. in smartphones, tablets and e-readers – and as a result, mobile broadband – it requires additional spectrum before new spectrum will become available. In the long term, the entire industry will need additional spectrum to address the explosive growth in demand for mobile broadband.
Improves service quality for U.S. wireless customers
AT&T and T-Mobile USA customers will see service improvements - including improved voice quality - as a result of additional spectrum, increased cell tower density and broader network infrastructure. At closing, AT&T will immediately gain cell sites equivalent to what would have taken on average five years to build without the transaction, and double that in some markets. The combination will increase AT&T’s network density by approximately 30 percent in some of its most populated areas, while avoiding the need to construct additional cell towers. This transaction will increase spectrum efficiency to increase capacity and output, which not only improves service, but is also the best way to ensure competitive prices and services in a market where demand is extremely high and spectrum is in short supply.
Expands 4G LTE deployment to 95 percent of U.S. population – urban and rural areas
This transaction will directly benefit an additional 46.5 million Americans – equivalent to the combined populations of the states of New York and Texas – who will, as a result of this combination, have access to AT&T’s latest 4G LTE technology. In terms of area covered, the transaction enables 4G LTE deployment to an additional 1.2 million square miles, equivalent to 4.5 times the size of the state of Texas. Rural and smaller communities will substantially benefit from the expansion of 4G LTE deployment, increasing the competitiveness of the businesses and entrepreneurs in these areas.
Increases AT&T’s investment in the U.S.
The acquisition will increase AT&T’s infrastructure investment in the U.S. by more than $8 billion over seven years. Expansion of AT&T’s 4G LTE network is an important foundation for the next wave of innovation and growth in mobile broadband, ensuring the U.S. continues to lead the world in wireless technology and availability. It makes T-Mobile USA, currently a German-owned U.S. telecom network, part of a U.S.-based company.
An impressive, combined workforce
Bringing AT&T and T-Mobile USA together will create an impressive workforce that is best positioned to compete in today’s global economy. Post-closing, AT&T intends to tap into the significant knowledge and expertise held by employees of both AT&T and T-Mobile USA to succeed. AT&T is the only major U.S. wireless company with a union workforce, offering leading wages, benefits, training and development for employees. The combined company will continue to have a strong employee and operations base in the Seattle area.
Consistent with AT&T’s track record of value-enhancing acquisitions
AT&T has a strong track record of executing value-enhancing acquisitions and expects to create substantial value for shareholders through large, straightforward synergies with a run rate of more than $3 billion, three years after closing onward (excluding integration costs). The value of the synergies is expected to exceed the purchase price of $39 billion. Revenue synergies come from opportunities to increase smartphone penetration and data average revenue per user, with cost savings coming from network efficiencies, subscriber and support savings, reduced churn and avoided capital and spectrum expenditures.
The transaction will enhance margin potential and improve the company’s long-term revenue growth potential as it benefits from a more robust mobile broadband platform for new services.
Additional financial information
The $39 billion purchase price will include a cash payment of $25 billion with the balance to be paid using AT&T common stock, subject to adjustment. AT&T has the right to increase the cash portion of the purchase price by up to $4.2 billion with a corresponding reduction in the stock component, so long as Deutsche Telekom receives at least a 5 percent equity ownership interest in AT&T.
The number of AT&T shares issued will be based on the AT&T share price during the 30-day period prior to closing, subject to a 7.5 percent collar; there is a one-year lock-up period during which Deutsche Telekom cannot sell shares.
The cash portion of the purchase price will be financed with new debt and cash on AT&T’s balance sheet. AT&T has an 18-month commitment for a one-year unsecured bridge term facility underwritten by J.P. Morgan for $20 billion. AT&T assumes no debt from T-Mobile USA or Deutsche Telekom and continues to have a strong balance sheet.
The transaction is expected to be earnings (excluding non-cash amortization and integration costs) accretive in the third year after closing. Pro-forma for 2010, this transaction increases AT&T’s total wireless revenues from $58.5 billion to nearly $80 billion, and increases the percentage of AT&T’s total revenues from wireless, wireline data and managed services to approximately 80 percent.
This transaction will allow for sufficient cash flow to support AT&T’s dividend. AT&T has increased its dividend for 27 consecutive years, a matter decided by AT&T’s Board of Directors.
Conditions
The acquisition is subject to regulatory approvals, a reverse breakup fee in certain circumstances, and other customary regulatory and other closing conditions. The transaction is expected to close in approximately 12 months.
Advisors
Greenhill & Co., J.P. Morgan and Evercore Partners acted as financial advisors and Sullivan & Cromwell LLP, Arnold & Porter, and Crowell & Moring provided legal advice to AT&T.
Conference Call/Webcast
On Monday, March 21, 2011, at 8 a.m. ET, AT&T Inc. will host a live video and audio webcast presentation regarding its announcement to acquire T-Mobile USA. Links to the webcast and accompanying documents will be available on AT&T's Investor Relations website. Please log in 15 minutes ahead of time to test your browser and register for the call.
For dial-in access, please dial +1 (888) 517-2464 within the U.S. or +1 (630) 827-6816 outside the U.S. after 7:30 a.m. ET. Enter passcode 8442095# to join or ask the conference call operator for the AT&T Investor Relations event.
The webcast will be available for replay on AT&T’s Investor Relations website on March 21, 2011, starting at 12:30 p.m. ET through April 21, 2011. An archive of the conference call will also be available during this time period. To access the recording, please dial +1 (877) 870-5176 within the U.S. or +1 (858) 384-5517 outside the U.S. and enter reservation code 29362481#.
Transaction Website
For more information on the transaction, including background information and factsheets, visit www.MobilizeEverything.com.
About AT&T
AT&T Inc. (NYSE:T) is a premier communications holding company. Its subsidiaries and affiliates – AT&T operating companies – are the providers of AT&T services in the United States and around the world. With a powerful array of network resources that includes the nation’s fastest mobile broadband network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet, voice and cloud-based services. A leader in mobile broadband and emerging 4G capabilities, AT&T also offers the best wireless coverage worldwide of any U.S. carrier, offering the most wireless phones that work in the most countries. It also offers advanced TV services under the AT&T U-verse® and AT&T │DIRECTV brands. The company’s suite of IP-based business communications services is one of the most advanced in the world. In domestic markets, AT&T Advertising Solutions and AT&T Interactive are known for their leadership in local search and advertising.
Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at http://www.att.com. This AT&T news release and other announcements are available at http://www.att.com/newsroom and as part of an RSS feed at www.att.com/RSS. Or follow our news at @ATT.
About Deutsche Telekom
Deutsche Telekom is one of the world's leading integrated telecommunications companies with around 129 million mobile customers, approximately 36 million fixed-network lines and more than 16 million broadband lines (as of December 31, 2010). The Group provides products and services for the fixed network, mobile communications, the Internet and IPTV for consumers, and ICT solutions for business customers and corporate customers. Deutsche Telekom is present in over 50 countries and has around 247,000 employees worldwide. The Group generated revenues of EUR 62.4 billion in the 2010 financial year - more than half of it outside Germany (as of December 31, 2010).
About T-Mobile USA
Based in Bellevue, Wash., T-Mobile USA, Inc. is the U.S. wireless operation of Deutsche Telekom AG. By the end of the fourth quarter of 2010, approximately 129 million mobile customers were served by the mobile communication segments of the Deutsche Telekom group - 33.7 million by T-Mobile USA - all via GSM and UMTS, the world's most widely used digital wireless standards. Today, T-Mobile operates America's largest 4G network, and is delivering a compelling 4G experience across a broad lineup of leading devices in more places than competing 4G services. T-Mobile USA's innovative wireless products and services empower and enable people to stay connected and productive while mobile. Multiple independent research studies continue to rank T-Mobile USA as a leader in customer care and customer satisfaction. For more information, please visit http://www.T-Mobile.com. T-Mobile is a federally registered trademark of Deutsche Telekom AG. For further information on Deutsche Telekom, please visit www.telekom.de/investor-relations.
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially. In addition to these factors, there are risks and uncertainties associated with the T-Mobile business, the pendency of the T-Mobile acquisition and the ability to realize the benefits of the integration of the T-Mobile business. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise. This news release may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company's website at www.att.com/investor.relations.
© 2011 AT&T Intellectual Property. All rights reserved. Mobile broadband not available in all areas. AT&T, the AT&T logo and all other marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.

I'm really concerned about what this means for future Nexus phones. AT&T locks down Android phones to prevent installation of non-Market .apks so I doubt they'd allow future revisions of the most open Android phone to roam across their network.

Noooooooooooooo!
Don't touch my tzones!

at first, im relaxed, enjoying my current plan. the only thing on my mind is a suitable upgrade for my N1.
then something happens.. something we cant possibly couldve prevented.
then, i see the inevitable happen..
this is what i feel like:
there has to be something positive out of this right? i dont want to be like the elderly people telling the government to 'leave my medicare alone.'

The end is upon us: Att to buy out T-mobile =(
http://www.engadget.com/2011/03/20/atandt-agrees-to-buy-t-mobile-from-deutsche-telekom
This feels like a shot to the gut right now
Before I had a Nexus One I had an iPhone with Att. I hated how Att trained their customer service reps to be complete pricks over the phone instead of helpful. A few calls to T-mobile and I was sold on their customer service. Now that will be no more. Eventually all of Att's unhelpful customer service training will permeate throughout the former T-mobile representatives. T-mobile always gave me the absolute best customer service of any company I had dealt with and now? No more...
T-mobile would always come in first in J.D. Power and Associate Customer Satisfaction Survey and now? No more...
T-mobile also had the most flexible and nicest wireless plans you could ask for. I currently use an Even More Plus no contract $50/mo for 500 minutes and unlimited data. While they were fighting for customers against the other 3 they would pull out all of the stops to make sure they attracted customers. Att gives people the middle finger with their 2gb (instead of 5) limit. I loved how competition in the wireless market resulted in better options for the consumer and now? No more...
First Google abandoning us and now this? I am sad

Well the one good thing is that existing plans will be grandfathered. They can't make you change your plan... unless you buy a new phone and sign a new contract I suppose.
Sent from my Nexus One

paperecho said:
Well the one good thing is that existing plans will be grandfathered. They can't make you change your plan... unless you buy a new phone and sign a new contract I suppose.
Click to expand...
Click to collapse
says who? ..........

I was terrified when I read this. This cannot be!!! I HATE AT&T!!!! What will this mean for my even more plus plan and data tethering???? I tether a lot with my unlimited data plan which is something AT&T hates or would like you to pay a ridiculous fee for..

paperecho said:
Well the one good thing is that existing plans will be grandfathered. They can't make you change your plan... unless you buy a new phone and sign a new contract I suppose.
Sent from my Nexus One
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I hope you're right man. I hope you're right. If they do make us (force) choose their expensive plans, I'll switch. Not gonna be capped at 2Gb without tether.

What are the implications for those of us on non-contract "even more plus" plans?
They better keep on developing wifi-calling and making it free.

heres a question: would it be wise to upgrade phones now while tmob is still tmob? im sure if/when att acquires tmob, theyll force new plans/rates..

Couldn't have gone to a more polar opposite carrier...
I detest AT&T, so I think I'll be looking for a new carrier! :-/
Sent from my NookColor using Tapatalk

pakraider said:
says who? ..........
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I was part of Cingular when at&t took them over. There are still people with old Cingular rate plans. They cannot force you to change plans unless you try and upgrade or something. And on top of that anyone who has tmo now and doesn't want to be on at&t this merger will give them an out for early term fees.
Sent from my Nexus One

opus1one1 said:
What are the implications for those of us on non-contract "even more plus" plans?
They better keep on developing wifi-calling and making it free.
Click to expand...
Click to collapse
I think for those of us on Even More+, we're ok, since we don't have ETFs. (I think). So we can leave if we want to anyway. I hope we get grandfathered in these plans, so atleast we can switch to potential new Nexus phones without changing plans.
About wifi-calling, I highly doubt they'll keep developing it if the merger goes through, let alone keep it free.

All I got to say is I'm out. Been thinking of switching back to Sprint anyway, especially with the current promo of $125 credit towards ETF through middle of April, and now the announcement of a a new bad-ass dual-core phone from HTC for Sprint. Now, if I'm not able to swing the switch before credit deadline, I'll at least be able to get out when the switch happens without an ETF, but one way or another, I'm most definitely out.

Makes them a GSM monopoly. Just down to the regulators to realise how important it is to have choice.
I suspect they've already been bought.

This news has ruined my day. I detest AT&T. Definitely will be switching and getting a new phone.
Anyone have any thoughts regarding Verizon and Sprint? I don't like Verizon as a company and I don't like the stories I've heard about Sprint's coverage. Anyone have anything to share?

Simple Mobile 60$ unlimited everything no contract plus if u get 4 ppl 2 sign u get a month free
Sent from my T-Mobile G1 using Tapatalk

I have a question : what's gonna happen regarding the 3G frequencies ?
As far as I remember, Tmobile N1 could not get 3G on AT&T and vice-versa (just like the iPhone).
Any ideas ? Will they keep different frequencies (which doesnt make much sense) or are we gonna get screwed ?

scalp42 said:
I have a question : what's gonna happen regarding the 3G frequencies ?
As far as I remember, Tmobile N1 could not get 3G on AT&T and vice-versa (just like the iPhone).
Any ideas ? Will they keep different frequencies (which doesnt make much sense) or are we gonna get screwed ?
Click to expand...
Click to collapse
Future phones will probably just be quadband.

Network Vision

Got some more info on it at work, won't share until it's cleared but I will say for those that stick thru these hards times, you will be extremely happy once this is completed and these upgrades will leave all other carriers in the dust.
Sent from my spaceship!

proof required, but very interesting news. hm.
Sent from my calculator watch.

You are such a tease.
Sent from space

LyndenP said:
You are such a tease.
Sent from space
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Lol trust me I wish I could share, as I was reading it my eyes lit up, the way the network will work is amazing and I think revolutionary.
Sent from my spaceship!

DirtyShroomz said:
and I think revolutionary.
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is it magical?

kingdazy said:
is it magical?
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The way it works, yes it is.
Sent from my spaceship!

LyndenP said:
You are such a tease.
Sent from space
Click to expand...
Click to collapse
I concur with the above.

DirtyShroomz said:
Got some more info on it at work, won't share until it's cleared but I will say for those that stick thru these hards times, you will be extremely happy once this is completed and these upgrades will leave all other carriers in the dust.
Sent from my spaceship!
Click to expand...
Click to collapse
Sounds great, get out there and do it.

mattykinsx said:
Sounds great, get out there and do it.
Click to expand...
Click to collapse
I work indoors
Sent from my spaceship!

So we have to wait about another year. Yay, what's one more year of ****ty service
Sent from my PC36100 using XDA Premium App

dirkyd3rk said:
So we have to wait about another year. Yay, what's one more year of ****ty service
Sent from my PC36100 using XDA Premium App
Click to expand...
Click to collapse
Where did this year come from?
Sent from my spaceship!

DirtyShroomz said:
Where did this year come from?
Sent from my spaceship!
Click to expand...
Click to collapse
Idk, assuming "network vision" hasn't deployed yet one can only assume another year since its been almost 2 and 4G is still dog ****. Whatever you're talking about sure as hell isn't gonna happen in the next month
Sent from my PC36100 using XDA Premium App

DirtyShroomz said:
I work indoors
Sent from my spaceship!
Click to expand...
Click to collapse
F that you work outdoors.
Fix it nao

if this is what he is talking about it was talked about last year
http://newsroom.sprint.com/news/sprint-announces-network-vision-network-evolution-plan.htm
Sprint Announces Network Vision – A Cutting-Edge Network Evolution Plan With Partners Alcatel-Lucent, Ericsson and Samsung
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OVERLAND PARK, Kan. (BUSINESS WIRE), December 06, 2010 - Sprint (NYSE: S) today unveiled its Network Vision blueprint to deploy a cost-effective, innovative network plan to further enhance voice quality and data speeds for customers across the United States. Sprint’s Network Vision is expected to consolidate multiple network technologies into one, seamless network.
Sprint has awarded contracts to Alcatel-Lucent, Ericsson and Samsung to bring Network Vision to life by implementing multimode technology to enhance service – coverage, quality and speed – create network flexibility, reduce operating costs and improve environmental sustainability. The scope of the arrangement between Sprint and these best-in-class vendors includes purchases of hardware, software and services. The awarded suppliers will deploy state-of-the-art technology expected to bring Sprint customers an overall enhanced network experience and deliver financial value to Sprint.
“Improving the customer experience – business and consumer – is the motivating force behind these network improvements,” said Dan Hesse, Sprint CEO. “We are very pleased with the results of our process which selected these three world-class partners. Each company realized the network proposal process was highly competitive, and each responded with innovative, cost-effective solutions.
“Network Vision builds on our legacy of wireless innovation and represents the next step in the evolution of our networks to best meet unprecedented growth in mobility services. We are well-positioned to take advantage of new technology, chipsets, devices and applications. Working with these three partners, we expect to deliver to our customers the most cutting-edge network capabilities available today and in the future.”
Today, Sprint uses separate equipment to deploy services on 800MHz spectrum, 1.9GHz spectrum and, through its relationship with Clearwire, 2.5GHz spectrum. Under the terms of the new contracts, Alcatel-Lucent, Ericsson and Samsung will install new network equipment and software that brings together multiple spectrum bands, or airwaves, on a single, multimode base station. (See ‘Current vs. New cell site’ at the Sprint Network Vision Information Center.)
The base stations will allow for the flexibility to offer new technologies using any of the 800MHz, 1.9GHz or 2.5GHz bands, as well as other spectrum bands. Sprint and the three companies expect to finalize the implementation schedule and begin the first stages of deployment in 2011. Completion of Network Vision across the Sprint network is expected to take from three to five years.
The implementation of multimode technology throughout the Sprint network is designed to:
* Enhance service – Improve quality and data speed; improve in-building coverage and coverage within the network footprint
* Create network flexibility – Ensure the most effective expansion of 4G
* Reduce operating costs by delivering capital efficiency, lease reductions, roaming savings and backhaul efficiencies
* Improve environmental sustainability by reducing carbon footprint and energy consumption needs
In addition to implementing multimode base stations, the Sprint Network Vision plan encompasses next-generation push-to-talk (PTT) with broadband capabilities and the integration of multimode chipsets into smartphones, tablets and other broadband devices, including machine-to-machine (M2M) capabilities.
Through spectrum efficiencies associated with Network Vision, Sprint intends to repurpose some of its 800MHz spectrum for CDMA service, thereby enhancing coverage, particularly the in-building experience for customers. Augmenting its 1.9GHz footprint with 800MHz, Sprint expects its CDMA coverage density will increase throughout the country. More density generally equates to fewer dropped calls and a more seamless network experience for customers. According to a 2010 PCWorld 13-city, 3G drive test, Sprint had the most reliable network. The Network Vision plan expects to enhance that competitive position.
“This is a very bold move,” said Berge Ayvazian, senior consultant, Heavy Reading. “Sprint was first with an all-digital wireless network; the first to upgrade to EVDO; and, more recently, the first to broadly offer 4G services. Sprint is once again first to deploy a common converged mobile network that will strengthen its 3G services; enhance its 4G technology options; and continue delivering the industry’s leading push-to-talk offering.”
Future of push-to-talk
During the nationwide implementation of Network Vision, PTT customers will continue to receive a superior customer experience on the iDEN network, currently performing at best-ever levels. As the Network Vision transformation unfolds, Sprint expects to launch the next-generation of PTT services in 2011 on the CDMA network, offering customers sub-second call setup time along with robust data capabilities.
Over time, a shift is likely to occur whereby customers demand more data-centric applications with PTT usage. According to recent industry research, U.S. wireless data traffic exceeds voice traffic for the first time in history. The industry’s mobile data revenue is up 27 percent this year*. (See ‘Wireless data growth trends’ at the Sprint Network Vision Information Center.)
As the shifting to more broadband-centric PTT applications on the CDMA network occurs, it is expected that iDEN cell sites will be phased out. This phase out is expected to begin in 2013.
“We’re seeing an increasing need from our push-to-talk customers for high-speed data capabilities, said Steve Elfman, president-Network Operations & Wholesale, Sprint. “Marrying the industry’s only sub-second PTT call setup with broadband data directly supports our customers’ needs and creates an unmatched offering in the market. Additionally, we fully expect a competitively priced lineup of rugged handsets and smartphones on the CDMA network.”
Greater efficiency benefits environmental sustainability
Across the country, as Network Vision is implemented, the size and power required to operate cell sites used by Sprint is expected to be reduced. Where an entire site can be decommissioned, Sprint intends to reduce its carbon footprint and energy costs. This network transformation will further Sprint’s lead in environmental sustainability and social responsibility. As Newsweek’s #6 ranked U.S. company in its recent “Green” rankings, Sprint will continue to aggressively identify ways to protect the environment. (See more at the Sprint Sustainability Information Center.)
Financial benefit to Sprint
Sprint expects the Network Vision plan to bring financial benefit to the company, not only by reducing operating costs, but also by avoiding future expenses as wireless data traffic continues to grow. The total estimated incremental cost of the Network Vision program during the deployment period is between $4 billion and $5 billion. Sprint estimates the total net financial benefit for a seven-year period to be between $10 billion and $11 billion. Cost savings are expected to come from capital efficiencies, reducing energy costs, lowering roaming expenses, backhaul savings and the eventual reduction in total cell sites. As Network Vision gives Sprint a more efficient network, and wireless data demand continues to increase, the per-unit cost efficiencies of serving Sprint customers should improve.
Network Vision implementation
The nation’s geography will be divided among Alcatel-Lucent, Ericsson and Samsung on a market-by-market basis. Several of the markets for each company:
* Alcatel-Lucent: New York City, Philadelphia, Boston, Washington, D.C./Baltimore and Los Angeles
* Ericsson: Atlanta, Miami, Houston, Kansas City and Dallas
* Samsung: Chicago, Denver, Pittsburgh, San Francisco and Seattle
* Research support: “New Cisco Visual Networking Index Forecasts Global IP Traffic to Increase Fivefold by 2013” – June 9, 2009
About Sprint Nextel
Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served more than 48.8 million customers at the end of the third quarter of 2010 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, Common Cents Mobile and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. Newsweek ranked Sprint #6 in its 2010 Green Rankings, listing it as one of the nation’s greenest companies, the highest of any telecommunications company. You can learn more and visit Sprint at www.sprint.com or www.facebook.com/sprint and www.twitter.com/sprint.
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This news release includes “forward-looking statements” within the meaning of the securities laws. The statements in this news release regarding network performance, coverage and capabilities, business and network efficiencies, including expected financial savings, new technologies, products and services, environmental sustainability, and the business outlook and performance, as well as other statements that are not historical facts, are forward-looking statements. The words “estimate,” “project,” “forecast,” “intend,” “expect,” “believe,” “target,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are estimates and projections reflecting management’s judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. With respect to these forward-looking statements, management has made assumptions regarding, among other things, development and deployment of new technologies; operating costs; efficiencies and cost savings of multimode technologies; customer and network usage; customer growth and retention; pricing; service, coverage and quality; environmental sustainability; repurpose of spectrum; availability of devices; the timing of various events and the economic environment. Sprint Nextel believes these forward-looking statements are reasonable; however, you should not place undue reliance on forward-looking statements, which are based on current expectations and speak only as of the date of this release. Sprint Nextel is not obligated to publicly release any revisions to forward-looking statements to reflect events after the date of this release. Sprint Nextel provides a detailed discussion of risk factors in periodic SEC filings, including its annual report on Form 10-K for the year ended Dec. 31, 2009, in Part I, Item 1A, “Risk Factors,” and in Part II, Item 1A “Risk Factors,” of its quarterly report on Form 10-Q for the period ended Sept. 30, 2010.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6534412&lang=en

mattykinsx said:
F that you work outdoors.
Fix it nao
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Hah ill get right on it!
Sent from my spaceship!

I'm familiar with "network vision" that's why I made that comment about us seeing it in a year; looking at sprints history it takes them ages to get **** going.
Sent from my PC36100 using XDA Premium App

To be hoenst it won't make a difference if Sprint doesn't figure out which way it's going with on the 4g end

kingakuma said:
To be hoenst it won't make a difference if Sprint doesn't figure out which way it's going with on the 4g end
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Yeah I read that they inked another deal with clear through 2012 to continue using wimax so I'm hoping by then the so called "network vision" will roll out. It looks like they will use wimax then slowly push it aside and hopefully get lte going but idk.
Sent from my PC36100 using XDA Premium App

dirkyd3rk said:
I'm familiar with "network vision" that's why I made that comment about us seeing it in a year; looking at sprints history it takes them ages to get **** going.
Sent from my PC36100 using XDA Premium App
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Beg to differ. I know of a site that already got the upgrade. One weekend it as a farm, the next weekend a couple of much smaller boxes, and a new tower. Sorry no pics, photography restricted location.

The AT&T / T-mobile Senate Hearing

I know many of you T-mobile fans don't want to see the merger between AT&T and T-mobile. I agree with you also. As of yesterday, the battle have begun as favoring and opposing parties present their cases to the Senate. Read about it at the link below. It's very interesting!
http://www.tomsguide.com/us/Spectrum-AT-T-T-Mobile-Sprint-Congress,news-11247.html

I'm all for the merger. It will enable AT&T to provide much better and faster data service.

I'm against the merger, at&t has bandwidth they are warehousing, they don't need t-mobile they only want to save themselves 2-3 years of utilizing that bandwidth

i'm against; it will open the door for big red to buy sprint, thus creating a duopoly which will stagnate innovation and increase prices for us, the end consumers as we will have but 1 option.. or the other.
choice is king, which is why obamacare sucks.. i'm free to choose whatever the hell i want, and that will keep companies offering services to be beggin me, not me beggin them..

wdkingery said:
i'm against; it will open the door for big red to buy sprint, thus creating a duopoly which will stagnate innovation and increase prices for us, the end consumers as we will have but 1 option.. or the other.
choice is king, which is why obamacare sucks.. i'm free to choose whatever the hell i want, and that will keep companies offering services to be beggin me, not me beggin them..
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Awesome post. Couldn't have said it better myself.
Down with At&t. Had them before, and all I experienced was terrible customer service with non-competitive prices.

Well I'm against also. It just makes one big uncaring monopoly for GSM users. In my area in Michigan T-mobile had HSPA almost 2 years ago, AT&T promised it for three years and finally rolled it out on April 1st this year. In rural areas coverage is about equal and they still have yet to upgrade beyond GPRS. So it's still a big thing to debate. Realistically only the top 5% of the most populated areas of the US are covered my mobile broadband.
At&T's recent acquisition of Centennial Wireless shows what they are up to, No Good!!! They have mediocre roll-out of mobile data upgrades and crappier prices. Even Sprint upgraded their networks to EVDO rev. A in 2008. I'm still waiting for AT&T's EDGE roll-out.
The only one that benefits from such a merger are the shareholders and the CEO's who will receive millions in compensation while the consumers will get less options, and higher prices.
I see things everyday about Iphones in NYC that are well below edge speed on AT&T's supposedly high speed 3g network and who really wants to pay $80-100 per month for the convenience of 2GB of data per month on the unlimited talk plan $70 voice+$25 for data.
Want to see something funny....
DataConnect 3G plans for 3G Laptop, 3G Laptop Connect Cards and 3G / 4G Mobile Hotspots
Data Monthly Cost AT&T Wi-Fi Access Domestic Overage Fees
DataConnect 3GB HotSpot $35.00 $10.00 per 1 GB
DataConnect 5 GB $60.00 $0.05 per 1 MB
So the cheaper 3GB plan overages are $10/GB yet the more expensive 5GB plan it is $50/GB. How do they figure?
Enough ranting about price but seriously we need more competition not less.

I hope this deal gets trashed.
Sent from my Incredible with the XDA Premium App.

I'm against the merger with "iphonie at&t"!

landoftheeskimos said:
Well I'm against also. It just makes one big uncaring monopoly for GSM users. In my area in Michigan T-mobile had HSPA almost 2 years ago, AT&T promised it for three years and finally rolled it out on April 1st this year. In rural areas coverage is about equal and they still have yet to upgrade beyond GPRS. So it's still a big thing to debate. Realistically only the top 5% of the most populated areas of the US are covered my mobile broadband.
At&T's recent acquisition of Centennial Wireless shows what they are up to, No Good!!! They have mediocre roll-out of mobile data upgrades and crappier prices. Even Sprint upgraded their networks to EVDO rev. A in 2008. I'm still waiting for AT&T's EDGE roll-out.
The only one that benefits from such a merger are the shareholders and the CEO's who will receive millions in compensation while the consumers will get less options, and higher prices.
I see things everyday about Iphones in NYC that are well below edge speed on AT&T's supposedly high speed 3g network and who really wants to pay $80-100 per month for the convenience of 2GB of data per month on the unlimited talk plan $70 voice+$25 for data.
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Well said! I've couldn't agree more! This is AT&T attempt to take over the country. Like you said, only the high executives are benefiting from this merger while the consumers will suffer from it. Consumers will shed more money out of their pockets, only to end up putting more money in these high executives' pockets to satisfy their greed. In my book, this is a crime! Taking from the poor to get more richer!! What a damn shame!!!

wdkingery said:
i'm against; it will open the door for big red to buy sprint, thus creating a duopoly which will stagnate innovation and increase prices for us, the end consumers as we will have but 1 option.. or the other.
choice is king, which is why obamacare sucks.. i'm free to choose whatever the hell i want, and that will keep companies offering services to be beggin me, not me beggin them..
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agreed.....10ct

Anyone opposed to this should sign THIS PETITION
and share it on your other forums, Facebook, etc. also feel free to post in OP.
From the site:
If approved, there will be a virtual duopoly for mobile phone service -- with AT&T and Verizon controlling 80% of the market. It's one of the largest proposed "mergers" in years -- and the biggest potential anti-trust case of the Obama administration.
Make no mistake, AT&T taking over T-Mobile would be a disaster for all mobile phone users -- not just T-Mobile customers. AT&T has a history censoring content and blocking phone features it doesn't like. The proposed takeover would lead to higher prices and stifle choice and innovation in the marketplace.
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Completely against this, considering what few GSM carriers we have here in the states. As far as a merger ever benefiting the consumers, this is At&t we're talking about here, the only reason their doing this is to remove a thorn in their side. It removes your options and forces you to eat price hikes because they know you have no choices. At&t also tiers their data, nerfs Android phones along with a slew of other things (regarding landline). T-Mobile should hope it fails take their 6 Billion and give At&t and Verizon a real run for their money. That would benefit consumers more.

Fight the T-mobile buyout

The merger will lead to less competition and worse service for us:
fightthemerger.com

What if I actually support the merger? Is there a "supportthemerger.com" website around?
Honestly, much as I'm against big businesses lumping together into super-goliath monsters... I think AT&T will actually benefit greatly from a T-Mobile merger. Mostly because they'll have lots more spectrum for LTE than any of the competition.
More spectrum = better coverage & better throughput.
What's wrong with that?

+1 most captivate users have AT&T. We are the "winners" rofl

no thanks
It's really a win-win
TMo customers get better coverage, and ATT customers get more 4G.

Shammyh said:
What if I actually support the merger? Is there a "supportthemerger.com" website around?
Honestly, much as I'm against big businesses lumping together into super-goliath monsters... I think AT&T will actually benefit greatly from a T-Mobile merger. Mostly because they'll have lots more spectrum for LTE than any of the competition.
More spectrum = better coverage & better throughput.
What's wrong with that?
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good point and I would agree if there were market pressure to push AT&T to utilize the bandwith, but they only have incentive to elliminate competition or improve service just enough, they have no reason to max out benefits to us users beyond what they need to avoid threat of us leaving for greener pastures...

Shammyh said:
What if I actually support the merger? Is there a "supportthemerger.com" website around?
Honestly, much as I'm against big businesses lumping together into super-goliath monsters... I think AT&T will actually benefit greatly from a T-Mobile merger. Mostly because they'll have lots more spectrum for LTE than any of the competition.
More spectrum = better coverage & better throughput.
What's wrong with that?
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Click to collapse
well, yeah, AT&T will benefit from it... why else would they even pursue the acquisition? I don't care if they benefit or not, I care about protecting the consumer, and any merger of this magnitude does not have the consumer's best interests at heart.

While everyone is entitled to their own opinions, I firmly believe that the merger is bad news for consumers across the board. There are several reasons why, but here are five easy ones.
1. AT&T claims that this merger will create American jobs and increase investment. Sure, it might create new jobs, but more than 20,000 T-Mobile workers are expected to loose their jobs so AT&T can achieve post-merger "synergies." AT&T insists that this takeover is good for American workers because some of T-Mobile's employees will now be free to unionize. This is a benefit for those lucky enough to survive post-merger integration, but it doesn't offset the harm to the 20,000 other T-Mobile workers whom AT&T will fire. And despite AT&T's claims that it will increase investment, the company has told Wall Street it plans to cut investment by $10 billion if the deal goes through.
2. AT&T says that the elimination of T-Mobile as a competitor doesn't matter because most Americans still have other providers to choose from. In actuality this merger will give AT&T and Verizon 80 percent of the market, and no other carrier has the spectrum or other advantages of these giants. In any other industry, this much concentration between two companies would be unthinkable. The top two "too big to fail" U.S. banks collectively control only 20 percent of the U.S. market. In the wireless sector, smaller companies already struggle against AT&T and Verizon's dominance, and this merger will only make it harder for them to compete.
3. AT&T claims that this merger will not increase prices. However, AT&T uses misleading data to claim that post mergers led to price declines. But the facts show that consumers' monthly bills have increased even as wireless carriers' own costs to offer services have dropped sharply. The truth is that mobile data users are paying more for wireless services as the market has consolidated, and AT&T and Verizon's elimination of unlimited data plans will only exacerbate this trend. Voice services are not getting cheaper, either, because carriers are forcing customers to buy more minutes than they will use. Indeed, the data AT&T uses to justify its claim of declining prices actually show that the per minute price of a cellphone call has declined, but this hides the fact that the total amount customers pay each month has increased even as carriers' costs have decreased. AT&T told Wall Street that it will increase the revenue it extracts from T-Mobile customers. The loss of a competitor means all consumers will see higher prices.
4. AT&T says this merger is necessary to ensure rural Americans have access to next-generation mobile Internet, when, even if the deal is blocked, 97% of Americans will have 4G services available from at least two carriers by 2014. AT&T told the FCC it would deploy 4G "HSPA+" services to 97 percent of the country even if the merger were blocked. Verizon's entire network will be 4G "LTE" capable by 2014. There is not a single American who needs this merger to get 4G mobile services. AT&T now says it will stop its 4G "LTE" deployment at just 80 percent of the country. But would AT&T really cede this marketing advantage to Verizon? Of course not. It will make the minimal investment needed to have an all-LTE network even if the merger is blocked.
5. AT&T claims that this merger is necessary to alleviate congestion on their network. Actually, AT&T's claim of capacity issues is a sham, because the company has vast spectrum holdings it doesn't even use. The notion that AT&T must acquire T-Mobile to relieve network congestion is baseless, given that it is the only national wireless carrier that isn't using its next-generation spectrum holdings. AT&T's quality issues are not the result of shortage of spectrum, but of its own failure to make timely network investments. Instead of competing fairly in the free market, AT&T is asking the government to help it acquire more spectrum by killing off a competitor.

cajunflavoredbob said:
While everyone is entitled to their own opinions, I firmly believe that the merger is bad news for consumers across the board. There are several reasons why, but here are five easy ones.
1. AT&T claims that this merger will create American jobs and increase investment. Sure, it might create new jobs, but more than 20,000 T-Mobile workers are expected to loose their jobs so AT&T can achieve post-merger "synergies." AT&T insists that this takeover is good for American workers because some of T-Mobile's employees will now be free to unionize. This is a benefit for those lucky enough to survive post-merger integration, but it doesn't offset the harm to the 20,000 other T-Mobile workers whom AT&T will fire. And despite AT&T's claims that it will increase investment, the company has told Wall Street it plans to cut investment by $10 billion if the deal goes through.
2. AT&T says that the elimination of T-Mobile as a competitor doesn't matter because most Americans still have other providers to choose from. In actuality this merger will give AT&T and Verizon 80 percent of the market, and no other carrier has the spectrum or other advantages of these giants. In any other industry, this much concentration between two companies would be unthinkable. The top two "too big to fail" U.S. banks collectively control only 20 percent of the U.S. market. In the wireless sector, smaller companies already struggle against AT&T and Verizon's dominance, and this merger will only make it harder for them to compete.
3. AT&T claims that this merger will not increase prices. However, AT&T uses misleading data to claim that post mergers led to price declines. But the facts show that consumers' monthly bills have increased even as wireless carriers' own costs to offer services have dropped sharply. The truth is that mobile data users are paying more for wireless services as the market has consolidated, and AT&T and Verizon's elimination of unlimited data plans will only exacerbate this trend. Voice services are not getting cheaper, either, because carriers are forcing customers to buy more minutes than they will use. Indeed, the data AT&T uses to justify its claim of declining prices actually show that the per minute price of a cellphone call has declined, but this hides the fact that the total amount customers pay each month has increased even as carriers' costs have decreased. AT&T told Wall Street that it will increase the revenue it extracts from T-Mobile customers. The loss of a competitor means all consumers will see higher prices.
4. AT&T says this merger is necessary to ensure rural Americans have access to next-generation mobile Internet, when, even if the deal is blocked, 97% of Americans will have 4G services available from at least two carriers by 2014. AT&T told the FCC it would deploy 4G "HSPA+" services to 97 percent of the country even if the merger were blocked. Verizon's entire network will be 4G "LTE" capable by 2014. There is not a single American who needs this merger to get 4G mobile services. AT&T now says it will stop its 4G "LTE" deployment at just 80 percent of the country. But would AT&T really cede this marketing advantage to Verizon? Of course not. It will make the minimal investment needed to have an all-LTE network even if the merger is blocked.
5. AT&T claims that this merger is necessary to alleviate congestion on their network. Actually, AT&T's claim of capacity issues is a sham, because the company has vast spectrum holdings it doesn't even use. The notion that AT&T must acquire T-Mobile to relieve network congestion is baseless, given that it is the only national wireless carrier that isn't using its next-generation spectrum holdings. AT&T's quality issues are not the result of shortage of spectrum, but of its own failure to make timely network investments. Instead of competing fairly in the free market, AT&T is asking the government to help it acquire more spectrum by killing off a competitor.
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Great post!

I pretty much agree with bleach168. But I do think coverage will generally be better for both AT&T and T-Mobile users. For example, once the merger was announced, suddenly my T-Mobile phone worked on AT&T in rual areas it never did before. No doubt as demonstration to officials of the advantages of merging networks. But simple roaming agreements could have done the same without a merger looming.
Of course any service improvements will come at a price. The merger is much more about making money than better service. Loss of competition will hurt. T-Mobile customers will certainly pay more, and likely so will AT&T users.
So today I signed up for 2 lines of T-Mo's unlimited talk, text & data for $49.99 each. Too good to pass up. And hopefully I can stay grandfathered in with that after AT&T takes over.
From HTC G2 with xda premium.

joeybear23 said:
no thanks
It's really a win-win
TMo customers get better coverage, and ATT customers get more 4G.
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Not really, I keep saying either 1 of 2 things can happen:
1: AT&T does merge with T-Mobile, AT&T will cripple the T-Mobile plans, services, and network.
or
2: AT&T does merge with T-Mobile, and AT&T leaves T-Mobile the way it is, just share the name, devices, and cell towers to make better coverage for both companies.

Kid Poker said:
Not really, I keep saying either 1 of 2 things can happen:
1: AT&T does merge with T-Mobile, AT&T will cripple the T-Mobile plans, services, and network.
or
2: AT&T does merge with T-Mobile, and AT&T leaves T-Mobile the way it is, just share the name, devices, and cell towers to make better coverage for both companies.
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Did these things happen with either the AllTel or Cingular acquisitions? I remember both...

Or 3: AT&T doesn't merge with T-Mobile, Deutsche Telekom pockets a cool $3 bn, kills T-Mobile anyway and butchers the corpse into little pieces and sells them to the highest bidder (likely AT&T).
Either way, AT&T and DT win, the consumers in America lose.

joeybear23 said:
Did these things happen with either the AllTel or Cingular acquisitions? I remember both...
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I don't remember AllTel but I do remember Cingular

Kid Poker said:
I don't remember AllTel but I do remember Cingular
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Yea, and neither one benefited consumers. Quality of service and pricing have increased sharply ever since then despite the fact that they originally told the customers the same crap that they're saying now about T-Mobile. I left Cingular after the buyout because the quality of service went down the toilet. I'm with T-Mobile to stay away from AT&T. They are an evil and greedy company.

Doomsday is coming as evil AT&T nears !!

joeybear23 said:
no thanks
It's really a win-win
TMo customers get better coverage, and ATT customers get more 4G.
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Except for the fact att has the worst customer service on the planet. i swear the just pull people in off the street without training them and giving them a headset and off they go .....
As well as always trying to inflate the bill beit through some eroneous charge or otherwise. im really not looking foward to att Tmobile has always had great service and reception

I agree with CajunFlavoredBob. This merger (which is a misnomer it's actually an ACQUISITION!! ) will do absolutely nothing to make things better. AT&T customers will be subject to the same crap they have always dealt with, and T-Mo customers will have higher prices and crappier service ( I pay twenty dollars per line (3 lines) for 5GBs of unthrottled data...AT&T wants forty five dollars per line for 4GBs and it's NOT throttled after the 4GB limit, they charge overages!!!)...not to mention waiting ages for the next Nexus device. This is not a good thing. If you believe otherwise....well...keep drinking that kool-aid...you obviously like the way it tastes....

Babydoll25 said:
I agree with CajunFlavoredBob. This merger (which is a misnomer it's actually an ACQUISITION!! ) will do absolutely nothing to make things better. AT&T customers will be subject to the same crap they have always dealt with, and T-Mo customers will have higher prices and crappier service ( I pay twenty dollars per line (3 lines) for 5GBs of unthrottled data...AT&T wants forty five dollars per line for 4GBs and it's NOT throttled after the 4GB limit, they charge overages!!!)...not to mention waiting ages for the next Nexus device. This is not a good thing. If you believe otherwise....well...keep drinking that kool-aid...you obviously like the way it tastes....
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I didn't even get to mention pricing differences. lol
I only pay $50 a month for 1000 minutes ($30), unlimited text($10), and unlimited data + tethering($10). It's the same plan I've had for five years now.
Even still, new customers can sign up for nearly the same thing right now for only $80. A similar plan on AT&T is $100.

Shammyh said:
What if I actually support the merger? Is there a "supportthemerger.com" website around?
Honestly, much as I'm against big businesses lumping together into super-goliath monsters... I think AT&T will actually benefit greatly from a T-Mobile merger. Mostly because they'll have lots more spectrum for LTE than any of the competition.
More spectrum = better coverage & better throughput.
What's wrong with that?
Click to expand...
Click to collapse
How very naive.
1. At&t already own most of the spectrum across the states, in fact in the big radio spectrum auction of 2008, T-Mobile did'n't win a single auction whereas AT&T spent over $5bn on 300+ licences. This probably means that T-Mobile is actually leasing its bandwidth from another provider in the states (US Cellular).
2. If the buyout is successful, there is no reason to simulate competition between what will essentially be two fronts of the same company. AT&T being the bigger fish (and therefore having economy of scale advantages which mean more profit per customer) will either cripple T-Mobile's cheaper US service, or outright merge it with the main brand, removing all of T-Mobile's advantages in the process, eating it's market share, and phasing out it's price plans in favour of AT&T's more expensive ones.
3. Some people might wonder why you would buy a company just to cripple it, look no further than Microsoft to see the advantages of a market monopoly (and before you say Apple, look how much shares MSFT have in them, they make almost as much money off Apple as Apple do). The real reason AT wants T-mobile is twofold and nothing to do with the obvious....
One, AT&T owns all the spectrum it needs, T-Mobile is a Tier 2 internet provider (owning international network lines which means in basically owns all major internet pathways (which can easily transmit phone calls as well)), you do the math.
Two, T-Mobile is very big in the UK and some other non US territories, AT could profit from the familiarity by expanding outside the states under the T-Mobile brand.
Ultimately this buyout is nothing more than a Microsoft tactic. While there is great potential in it, unfortunately the potential is for the shareholders, not us. Even if the buyout does bring immense savings to the company, we will never see it, because they aren't savings that Verizon or any other competitors will share. AT&T only needs to stay at around the same pricing as them to be seen as competitive. Never will you see a mega-corporation lower prices just because they can and so nothing good will come of this merger for us.

Gen0 said:
How very naive.
1. At&t already own most of the spectrum across the states, in fact in the big radio spectrum auction of 2008, T-Mobile did'n't win a single auction whereas AT&T spent over $5bn on 300+ licences. This probably means that T-Mobile is actually leasing its bandwidth from another provider in the states (US Cellular).
2. If the buyout is successful, there is no reason to simulate competition between what will essentially be two fronts of the same company. AT&T being the bigger fish (and therefore having economy of scale advantages which mean more profit per customer) will either cripple T-Mobile's cheaper US service, or outright merge it with the main brand, removing all of T-Mobile's advantages in the process, eating it's market share, and phasing out it's price plans in favour of AT&T's more expensive ones.
3. Some people might wonder why you would buy a company just to cripple it, look no further than Microsoft to see the advantages of a market monopoly (and before you say Apple, look how much shares MSFT have in them, they make almost as much money off Apple as Apple do). The real reason AT wants T-mobile is twofold and nothing to do with the obvious....
One, AT&T owns all the spectrum it needs, T-Mobile is a Tier 2 internet provider (owning international network lines which means in basically owns all major internet pathways (which can easily transmit phone calls as well)), you do the math.
Two, T-Mobile is very big in the UK and some other non US territories, AT could profit from the familiarity by expanding outside the states under the T-Mobile brand.
Ultimately this buyout is nothing more than a Microsoft tactic. While there is great potential in it, unfortunately the potential is for the shareholders, not us. Even if the buyout does bring immense savings to the company, we will never see it, because they aren't savings that Verizon or any other competitors will share. AT&T only needs to stay at around the same pricing as them to be seen as competitive. Never will you see a mega-corporation lower prices just because they can and so nothing good will come of this merger for us.
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Good points, but two things to clear up from this are that AT&T does not plan to retain the T-Mobile brand, pricing, or anything. It's an acquisition, not a merger, in very technical terms. The other thing is that AT&T is only gaining the US branch of T-Mobile, not anything overseas. The rest of the brand will still be retained by Deutsche Telecom. Therefore, AT&T would not be able to use the T-Mobile brand name anywhere outside the US. It wouldn't be a good market strategy for them to do so anyhow.

ATT/TMO Deal not likely at this point...

http://www.bloomberg.com/news/2011-08-31/u-s-files-antitrust-complaint-to-block-proposed-at-t-t-mobile-merger.html
Really hope that this anti-trust deal is upheld.

http://www.todaysiphone.com/2011/08/attt-mobile-merger-blocked-by-us-government/

Good
Sent from my SPH-D700 using xda premium

Justice Department Files Antitrust Lawsuit to Block AT&T's Acquisition of T-Mobile Official Press Release.
Transaction Would Reduce Competition in Mobile Wireless Telecommunications Services, Resulting in Higher Prices, Poorer Quality Services, Fewer Choices and Fewer Innovative Products for Millions of American Consumers
the Justice Department said:
WASHINGTON - The Department of Justice today filed a civil antitrust lawsuit to block AT&T Inc.'s proposed acquisition of T-Mobile USA Inc.
The department said that the proposed $39 billion transaction would substantially lessen competition for mobile wireless telecommunications services across the United States, resulting in higher prices, poorer quality services, fewer choices and fewer innovative products for the millions of American consumers who rely on mobile wireless services in their everyday lives.
The department's lawsuit, filed in U.S. District Court for the District of Columbia, seeks to prevent AT&T from acquiring T-Mobile from Deutsche Telekom AG.
"The combination of AT&T and T-Mobile would result in tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for mobile wireless services," said Deputy Attorney General James M. Cole. "Consumers across the country, including those in rural areas and those with lower incomes, benefit from competition among the nation's wireless carriers, particularly the four remaining national carriers. This lawsuit seeks to ensure that everyone can continue to receive the benefits of that competition."
"T-Mobile has been an important source of competition among the national carriers, including through innovation and quality enhancements such as the roll-out of the first nationwide high-speed data network," said Sharis A. Pozen, Acting Assistant Attorney General in charge of the Department of Justice's Antitrust Division. "Unless this merger is blocked, competition and innovation will be reduced, and consumers will suffer."
Mobile wireless telecommunications services play a critical role in the way Americans live and work, with more than 300 million feature phones, smart phones, data cards, tablets and other mobile wireless devices in service today. Four nationwide providers of these services - AT&T, T-Mobile, Sprint and Verizon - account for more than 90 percent of mobile wireless connections. The proposed acquisition would combine two of those four, eliminating from the market T-Mobile, a firm that historically has been a value provider, offering particularly aggressive pricing.
According to the complaint, AT&T and T-Mobile compete head to head nationwide, including in 97 of the nation's largest 100 cellular marketing areas. They also compete nationwide to attract business and government customers. AT&T's acquisition of T-Mobile would eliminate a company that has been a disruptive force through low pricing and innovation by competing aggressively in the mobile wireless telecommunications services marketplace.
The complaint cites a T-Mobile document in which T-Mobile explains that it has been responsible for a number of significant "firsts" in the U.S. mobile wireless industry, including the first handset using the Android operating system, Blackberry wireless email, the Sidekick, national Wi-Fi "hotspot" access, and a variety of unlimited service plans. T-Mobile was also the first company to roll out a nationwide high-speed data network based on advanced HSPA+ (High-Speed Packet Access) technology. The complaint states that by January 2011, an AT&T employee was observing that "[T-Mobile] was first to have HSPA+ devices in their portfolio...we added them in reaction to potential loss of speed claims."
The complaint details other ways that AT&T felt competitive pressure from T-Mobile. The complaint quotes T-Mobile documents describing the company's important role in the market:
• T-Mobile sees itself as "the No. 1 value challenger of the established big guys in the market and as well positioned in a consolidated 4-player national market"; and
• T-Mobile's strategy is to "attack incumbents and find innovative ways to overcome scale disadvantages. [T-Mobile] will be faster, more agile, and scrappy, with diligence on decisions and costs both big and small. Our approach to market will not be conventional, and we will push to the boundaries where possible. . . . [T-Mobile] will champion the customer and break down industry barriers with innovations. . . ."
The complaint also states that regional providers face significant competitive limitations, largely stemming from their lack of national networks, and are therefore limited in their ability to compete with the four national carriers. And, the department said that any potential entry from a new mobile wireless telecommunications services provider would be unable to offset the transaction's anticompetitive effects because it would be difficult, time-consuming and expensive, requiring spectrum licenses and the construction of a network.
The department said that it gave serious consideration to the efficiencies that the merging parties claim would result from the transaction. The department concluded AT&T had not demonstrated that the proposed transaction promised any efficiencies that would be sufficient to outweigh the transaction's substantial adverse impact on competition and consumers. Moreover, the department said that AT&T could obtain substantially the same network enhancements that it claims will come from the transaction if it simply invested in its own network without eliminating a close competitor.
AT&T is a Delaware corporation headquartered in Dallas. AT&T is one of the world's largest providers of communications services, and is the second largest mobile wireless telecommunications services provider in the United States as measured by subscribers. It serves approximately 98.6 million connections to wireless devices. In 2010, AT&T earned mobile wireless telecommunications services revenues of $53.5 billion, and its total revenues were in excess of $124 billion.
T-Mobile, is a Delaware corporation headquartered in Bellevue, Wash. T-Mobile is the fourth-largest mobile wireless telecommunications services provider in the United States as measured by subscribers, and serves approximately 33.6 million wireless connections to wireless devices. In 2010, T-Mobile earned mobile wireless telecommunications services revenues of $18.7 billion. T-Mobile is a wholly-owned subsidiary of Deutsche Telekom AG.
Deutsche Telekom AG is a German corporation headquartered in Bonn, Germany. It is the largest telecommunications operator in Europe with wireline and wireless interests in numerous countries and total annual revenues in 2010 of 62.4 billion euros.
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GOOD
sent from my uncyanogen modded epic 4g. with the key skips.

Very good!
More competition.
Orrrr sprint to buy tmobile lol
Sent from my SPH-D700

ac16313 said:
Very good!
More competition.
Orrrr sprint to buy tmobile lol
Sent from my SPH-D700
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Sprint may end up buying T-Mobile now. I'm interested in how it goes.
P.S. Sprint's stock did well today due to this news.

Imagine a world with only AT&T...
Finally, the government does something I actually approve of.
Sent from the future.

Overstew said:
Sprint may end up buying T-Mobile now. I'm interested in how it goes.
P.S. Sprint's stock did well today due to this news.
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I am too. Only if we could speed up the process though
Sent from my SPH-D700

Overstew said:
P.S. Sprint's stock did well today due to this news.
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Saw that, but it had a run down over the last couple of weeks.
News like this could really spark a rally if its upheld, though.
Sent from my SPH-D700 using XDA App

doesn't sprint lose money every year? just more slowely? how are they going to buy anything.

austin420 said:
i think apple should buy tmobile so they can give iphone users a true end to end experience. tmo could exclusively sell iphones, leave all the good android handsets to the other carriers. if all the big networks(ie att and vzw) saw a mass exodus of customers to go to a service provided by apple, prices would prolly go down across the board.
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since they canned the other thread, ill post this here too.

austin420 said:
since they canned the other thread, ill post this here too.
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Possibly, but what would happen to the T-Mobile users who would like an Android phone?

get a quad band gsm android phone and use your tmo sim card. the same thing a lot of people do already.

Overstew said:
Sprint may end up buying T-Mobile now. I'm interested in how it goes.
P.S. Sprint's stock did well today due to this news.
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Doubt it. Sprint lacks the money and much of its lobbying against the merger could be used against a Sprint-TMobile merger.
And then they have incompatible networks. Big headache.
Sprint can benefit from TMobile now bleeding even more subscribers due to this debacle and their stagnant strategic decisionmaking while awaiting the merger (ie no iPhone and LTE).
With no LTE development and a spectrum crunch (that ATT and Verizon also have), TMobile may now have to pursue a deal piggyback off of Clearwire; not sure what this means if Clear ends up be acquired by Sprint.

Jayavarman said:
Doubt it. Sprint lacks the money and much of its lobbying against the merger could be used against a Sprint-TMobile merger.
And then they have incompatible networks. Big headache.
Sprint can benefit from TMobile now bleeding even more subscribers due to this debacle and their stagnant strategic decisionmaking while awaiting the merger (ie no iPhone and LTE).
With no LTE development and a spectrum crunch (that ATT and Verizon also have), TMobile may now have to pursue a deal piggyback off of Clearwire; not sure what this means if Clear ends up be acquired by Sprint.
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With more spectrally efficient technologies, the crunch will be alleviated, at least a little bit. LTE has a 5bit/hz spectral efficiency and can be deployed in channel lengths of as little as 1.4mhz. Speed = Spectral Efficiency * bandwidth. So, with the 120mhz of available bandwidth clearwire has, Sprint can run 5 users at 120mbps per tower or 10 users at 60mbps.
With the 800mhz band sprint can run 10 users at 7mbps or 7 users at 10mbps.
I don't know how much spectrum sprint has of 1900 but it is significant. It is, after all, Sprint's current bread and butter spectrum (their whole cdma network).
With the minimum sized 1.4mhz chunks in the 800mhz/2500mhz bands and sufficient backhaul, Sprint can support 95 users per tower running at a full 7mbps.
Bye bye 200kbps pseudo-3G!
Sent from my SPH-D700 using Tapatalk

Actually, this could be bad for Sprint. If T-Mobile gets bought by AT&T, several of their users will leave to Sprint. Also, right now, Sprint and T-Mobile are the main carriers that aren't crazy expensive, if T-Mobile gets expensive, Sprint will be the only one and that makes them stand out and get more customers.

vzw comes out as "not against" the deal. says if the gov. plans on blocking this, it needs to come up with a plan to address spectrum issues.
http://online.wsj.com/article/BT-CO-20110921-710723.html