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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.
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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 ?
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Click to collapse
Future phones will probably just be quadband.

AT&T Just purchased Tmobile... This will be interesting....

And only a week after I finally rooted my Mytouch slide....
From Engadget-
AT&T to Acquire T-Mobile USA from Deutsche Telekom
Provides Fast, Efficient and Certain Solution to Impending Spectrum Exhaust Challenges Facing AT&T and T-Mobile USA in Key Markets Due to Explosive Demand for Mobile Broadband
Enhances Network Capacity, Output and Quality in Near Term for Both Companies' Customers
AT&T Commits to Expand 4G LTE Deployment to an Additional 46.5 Million Americans, Including in Rural, Smaller Communities, for a Total of 294 Million or 95% of the U.S. Population
Provides 4G LTE Service for T-Mobile USA's 34 Million Subscribers
More Than $8 Billion in Incremental Infrastructure Spend by a U.S. Company over Seven Years, Enabling Nation's High-Tech Industry, Innovation and Economic Growth
Creates Substantial Value for AT&T Shareholders Through Large, Straightforward Synergies
DALLAS & BONN, Germany--(BUSINESS WIRE)--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.
"This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation's future."
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.
Transaction Website

More Information on the acquisition of Tmobile by AT&T from TmoNews-
Deutsche Telekom: US Deal accelerates own transformation
Deutsche Telekom to receive 39 billion USD for US-business  Deutsche Telekom to have up to 8 percent stake in the leading US
telecommunications company
AT&T takes over US mobile business from Deutsche Telekom
•Deutsche Telekom will receive 25 billion USD in cash and 14 billion USD in AT&T shares
•Attractive multiple of 7.1 times 2010 adjusted EBITDA
•Deutsche Telekom plans to use approximately 5 billion EUR for sharebuybacks
•Deutsche Telekom net debt is planned to be reduced by approximately 13 billion EUR or 31 percent

gg so long unlimted data usage

To clarify, they have not yet purchased them. They will if regulators (RIP Nate Dogg) approve the merge.

eclipsed450 said:
To clarify, they have not yet purchased them. They will if regulators (RIP Nate Dogg) approve the merge.
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+1 on the nate dogg ref.... and correct it is expected to take the next 12 months, but I very much doubt there will be any regulatory issues involved in the purchase.

BOOOOOOO I say. I hate AT&T and all their IPhone loving zombie customers. My 12 year old T-Mobile account (formally voicestream before the name change) will be cancelled the hour the acquisition goes through. AT&T will not see one red cent of my money.

What I hope, is that AT&T updates our rom to Sense (normal sense) not Espresso/mySense
Sent from my T-Mobile myTouch 3G Slide using XDA Premium App

I will move to sprint if at&t pulls the same BS they do with their customers.
Sent from my T-Mobile myTouch 3G Slide using XDA App

From what I understand, AT&T is planning to honor any contracts including pricing that are made before the merger is complete, but I do have a feeling pricing will eventually increase for plans, and somehow AT&T will find a way to cap our unlimited data plans as they do with their customers

This is what I got off of T-Mobile's website:
An agreement was announced under which AT&T will acquire T-Mobile USA. The agreement is the first step in a process that, including regulatory approvals, is expected to be completed in approximately 12 months. Until then, we remain a separate company and continue to operate independently.
We know our customers, business partners and others may have many questions.
Here is some more information:
Will my service change?
There is no change in your service and we remain committed to ensuring you have the best experience possible experience using your T-Mobile USA products and services.
Will I now be billed by AT&T?
No, your billing remains exactly the same. T-Mobile USA continues to operate as an independent company. As always, you would receive advance notice to any changes to your services.
Why is T-Mobile USA doing this?
Bringing together these two world-class businesses will create significant benefits for customers. The merger will ensure the deployment of a robust 4G LTE network to 95% of the U.S. population, something neither company would achieve on its own. Also, because of our compatible networks and spectrum, the customers of T-Mobile USA and AT&T will experience improved voice and data service almost immediately after the networks are integrated.
Will T-Mobile USA’s quality be reduced?
No. In fact, the combination of AT&T and T-Mobile USA will offer an even stronger service to customers. Until the acquisition is closed, we will work hard to maintain our position as the value leader with America’s largest 4G network.
If the acquisition closes, will I still be able to use my T-Mobile USA phone?
Yes. Your T-Mobile USA device will operate the same in the future as it does today.
Should I wait to sign-up with T-Mobile USA or upgrade my phone?
No, T-Mobile USA offers the latest wireless devices that are affordable on America’s Largest 4G Network and the combination of AT&T and T-Mobile USA will mean even stronger service for our customers. Now is a great time to be a T-Mobile customer.
Is T-Mobile USA getting the iPhone?
T-Mobile USA remains an independent company. The acquisition is expected to be completed in approximately 12 months. We do not offer the iPhone. We offer cutting edge devices like the Samsung Galaxy S 4G and coming soon our new Sidekick 4G.
Will my rate plan change because of the acquisition?
We will honor all contracted plans that are entered into before the change of ownership.
Where can I express my opinion on this?
T-Mobile customers can utilize the company's online Forums.

Is T-Mobile USA getting the iPhone?
We do not offer the iPhone. We offer cutting edge devices like the Samsung Galaxy S 4G.
LOLOL iphone burn.

This has totally crushed my day, I love tmobile and their customer service. This sucks big balls
Sent from my T-Mobile myTouch 3G Slide using XDA App

Well the day the merger happens I will be leaving. F*** At&T and their bull**** rate increases and data caps. I would rather have a soup can and string to make my calls.

siGNN said:
gg so long unlimted data usage
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yup. This is why I was with t-mo they were the only cell company that had even a tiny bit of customer service and weren't just reaming their customers on data.
I guess there goes that. we live in a time when businesses have realized that if they all screw their customers there's no one for you to leave them for that would be better.

(insert starwars deathstar theme song)
PcFish said:
Is T-Mobile USA getting the iPhone?
We do not offer the iPhone. We offer cutting edge devices like the Samsung Galaxy S 4G.
LOLOL iphone burn.
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Click to collapse
After a few years of being AT&T we all will be able to use the iphone...
At first the primary target is 4G LTE, when AT&T-mobile finish that project they are going to work on getting everyone on the same frequency. But we are talking years before we all benefit from greater coverage on 2-3G towers... but hey keep in mind T-mobile fans, Our cheap ass rate plans with unlimited data caps WILL be grandfathered! so hang tight we will be fine when the empire takes over! If you already have AT&T you should switch now get the better plans and then in a years time youre back with AT&T! LONG LIVE THE REBELLION!

Interesting times indeed.
I'm not sweatin' it.
Awesome Regulators ref. earlier in the thread btw!!!!!!!

Sprint on LTE?

I am not sure if this was talked about yet on here and if so then I am sorry if it is a repeat post.
I heard from a friend about a possible change in 4g service with sprint. I hope that others who work for sprint can confirm or deny this, but it seems that sprint wasted there money going with wimax to build out the 4g network as they are not either doing enough to implement the changes to the towers or they lack more investment.
So from what I heard is that sprint is going to re-invest into LTE and have to change current system and then expand the rest of the network to areas with out 4g. My question is what will happen to current 4g users, and was is going to happen to our epics that have a wimax chipset installed?
Please be civil and do not trash this thread or anyone who makes posts here thank you.
Sent from my SPH-D700 using XDA Premium App

Sprint will be using http://www.lightsquared.com/ for its 4g LTE.. Also the Epic will be fine.. Sprint will keep the wimax 4g for some time/or until the user base becomes way smaller than what it is now and people start to move over to LTE.. I wouldn't worry about it right now.. Of course if you don't have a 4g tower right now I wouldn't expect to see one..

I heard about Light Square about a month ago. As soon as i heard lte coming to sprint, i decided to stick to my epic untill sprint releases an lte phone. I suggest that everyone on sprint should hold on to their upgrades untill then. No point to upgrade when new lte phones coming.
Sent from my SPH-D700 using XDA App

Any wimax phone will get a software upgrade to lte no need to hold on to your upgrade this has been discussed many times

jbadboy2007 said:
Any wimax phone will get a software upgrade to lte no need to hold on to your upgrade this has been discussed many times
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So it is confirmed by sprint that anyone with an epic or any wimax chipset phone will get a comparable replacement to our current phones or a much newer model of phone like the nexus?
Sent from my SPH-D700 using XDA Premium App

You can't software update to LTE.. If you don't know what you're talking about, please don't verbalize it to the public. Misinformation is the real enemy.
Sent from my SPH-D700 using XDA Premium App

jbadboy2007 said:
Any wimax phone will get a software upgrade to lte no need to hold on to your upgrade this has been discussed many times
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incorrect.

Originally Posted by jbadboy2007
Any wimax phone will get a software upgrade to lte no need to hold on to your upgrade this has been discussed many times
Click to expand...
Click to collapse
incorrect.
Click to expand...
Click to collapse
+1
Sent from my SPH-D700 using XDA Premium App

I'm in Des Moines, IA. (Capital of Iowa for those that don't know.) I bought my phone in August last year with the 'hopes' of gaining 4g within a few months. It has and still has not happen.
What would be the chances of me complaining to sprint about them ditching WiMax and going with LTE? I'm assuming that there is something in the contracts for any legal issues. But has this happened with Sprint or any other carriers before?
(Be nice. Just bringing up a discussion/experiences.)

romowens01 said:
What would be the chances of me complaining to sprint about them ditching WiMax and going with LTE?
(Be nice. Just bringing up a discussion/experiences.)
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complaining for what? a new phone or out of your contract? i think you left out part of your question.

From Sprints Press release:
Sprint Nextel and LightSquared Announce Spectrum Hosting and Network
Services Agreement
NEWS HIGHLIGHTS:
• LightSquared enters into a Spectrum Hosting and Network Services Agreement
with Sprint that is expected to result in substantial savings for LightSquared and
accelerate completion of LightSquared’s nationwide 4G-LTE network
• Sprint has option to purchase 4G capacity from LightSquared
• LightSquared enters into a nationwide 3G Roaming Agreement with Sprint
RESTON, Va. and OVERLAND PARK, Kan. – July 28, 2011 – LightSquared™, the
nation’s first wholesale-only integrated 4G-LTE wireless broadband and satellite
network, and Sprint Nextel (NYSE: S) announced today they have entered into a 15-
year agreement that includes spectrum hosting and network services, 4G wholesale,
and 3G roaming.
This spectrum hosting arrangement leverages Sprint’s investment in its innovative,
multi-year Network Vision plan. Under the agreement, LightSquared will pay Sprint to
deploy and operate a nationwide LTE network that hosts L-Band spectrum licensed to
or available to LightSquared. As a wholesale-only carrier with separate core network
operations, LightSquared can sell its 4G broadband capacity produced through this
spectrum hosting relationship to Sprint, other wireless carriers, and retail partners.
Under the terms of the agreement, during an 11year period, LightSquared will make
payments to Sprint of approximately $9 billion in cash for spectrum hosting and network
services as well as LTE and satellite purchase credits which are currently estimated to
be valued at approximately $4.5 billion. The agreement also provides Sprint the
opportunity to purchase up to 50 percent of LightSquared’s expected L-Band 4G
capacity. The wholesale purchase credits will provide Sprint the option to obtain costcompetitive
access to 4G capacity by offsetting Sprint’s purchases of 4G capacity from
LightSquared, should Sprint elect to incorporate the L-Band LTE capability as part of its
4G offering.
This agreement is expected to lower network capital and operating expenses for
LightSquared by more than $13 billion over the next eight years in comparison with the
cost of a stand-alone network build. LightSquared expects the deployment of the
nationwide 4G-LTE network to be completed more than one year ahead of the Federal
Communications Commission (FCC) mandate to cover 260 million Americans by 2015.
LightSquared has also entered into a 3G nationwide roaming agreement with Sprint.
With access to Sprint’s 3G nationwide network, LightSquared’s wholesale customers
will be able to offer combined 4G/3G data services as soon as LightSquared launches
its first 4G markets in 2012.
“This spectrum hosting agreement with LightSquared allows Sprint to more efficiently
use its Network Vision platform,” said Steve Elfman, president of Network Operations
and Wholesale for Sprint. “In addition to improving our cash flow, it provides additional
options and flexibility in how we meet our customers’ future capacity needs.”
“This agreement gives LightSquared a rapid and cost-effective radio access network
build,” said LightSquared Chairman and CEO Sanjiv Ahuja. “With our next generation
satellite already operational and our independent core network build underway,
LightSquared is now well positioned to meet the fast-growing market demand for
wireless broadband services with its wholesale-only integrated 4G-LTE and satellite
network.”
The agreement is subject to LightSquared's obtaining resolution and FCC approval of
certain interference issues involving terrestrial use of the L-Band spectrum.
“We believe LightSquared, in cooperation with the FCC and adjacent spectrum users, is
taking proactive steps to address and resolve these issues in a timely manner,” said
Elfman
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Also, from a talking point document:
1. How will this agreement impact current Sprint customers?
Answer: While Sprint’s Network Vision initiative is expected to benefit customers by providing better
network coverage and performance, the LightSquared arrangement will have no impact to Sprint’s
current customers at this time.
2. How does this agreement impact Sprint’s relationship with Clearwire?
Answer: Sprint continues to offer 4G products and services through its wholesale relationship with
Clearwire. In April Sprint and Clearwire announced an agreement that established new wholesale
pricing terms and expands potential market segments for both companies. In addition, the
agreement provides Clearwire a minimum of $1 billion from Sprint to be paid during 2011 and 2012
for 4G wholesale services.
3. When will the Sprint 4G roadmap be announced?
Answer: Sprint plans to publicly provide an update on Network Vision and its long-term 4G plans
later this fall.
4. Does this announcement mean that Sprint can only offer LTE in partnership with LightSquared?
Answer: The agreement with LightSquared provides Sprint with wholesale purchase credits that will
provide Sprint the option to obtain cost-competitive access to 4G capacity should Sprint elect to
incorporate LTE capability as part of its 4G offering. Sprint’s conclusive strategy will be announced
this fall.
Click to expand...
Click to collapse
And something else of interest:
Clearwire Announces Plans to add LTE to their network
Background
On August 3, Clearwire announced its intent to add "LTE Advanced‐ready" technology to its 4G
network. This LTE deployment would occur as an overlay to their current WiMAX network – not
a replacement. They did note that the plan is “subject to additional funding” and each market
overlay would then take approximately 12 months to deploy. Clearwire also restated its
commitment to its existing 4G WiMAX network.
Main Messages
• This announcement by Clearwire should not be considered to be part of Sprint’s 4G
strategy. As previously announced, Sprint will provide details around its future 4G plans this
fall.
• Sprint continues to be a strong partner with Clearwire and we will continue to sell 4G
products and services in our existing markets.
FAQ
How long will Clearwire continue to offer WiMAX?
Answer: In their earnings release, Clearwire restated its commitment to its existing 4G WiMAX
network, and that it plans to operate both WiMAX and LTE on its network. Clearwire is an
independent company and specific questions about its future plans should be directed to
Clearwire.
Does this mean Sprint will begin selling LTE through Clearwire?
Sprint has not yet announced our future 4G plans. As previously announced, Sprint will provide
details around its future 4G plans this fall.
What does this mean for Clearwire’s (and therefore, Sprint’s) WiMAX network?
Clearwire did not announce plans to continue expanding its current WiMAX network. However,
they did note the company would consider additional markets if it can obtain additional
financing.
Does this impact Sprint’s recent agreement with Lightsquared?
Sprint’s arrangement with Lightsquared is a wholesale spectrum hosting agreement. It is not
impacted by any actions taken by Clearwire.
Will Sprint be deploying Clearwire’s LTE network as part of network vision – similar to the
Lightsquared agreement?
As of today, LightSquared is currently Sprint’s only spectrum hosting customer. Sprint may
discuss such arrangements with other prospective customers. Future agreements could provide
similar financial benefits to Sprint as well as potentially provide Sprint additional capacity, while
allowing a network service provider to potentially reduce its costs and time to deploy its own
4G services.
On the company's earnings conference call, Clearwire's interim CEO, John Stanton, said that the
company will overlay LTE service on its existing network and will not use Sprint Nextel's
Network Vision network architecture in existing Clearwire markets. However, he did indicate
that Clearwire is talking with Sprint to use Network Vision's multi‐mode base stations to deploy
LTE in markets in which it has not yet deployed service.
Click to expand...
Click to collapse

You probably will not see any significant LTE coverage on Sprint till 2013, IF both Sprint and Lightsquared can handle the debt and regulatory approvals.
Clearwire will keep its Wimax coverage stagnant with minimal expansion, IF it gets more funding from Sprint. Clearwire is set to run out of money by next summer.
Thus, I would not worry about the Epic 4G. It will long be obsolete and in the dustbin by the time Sprint comes around with LTE.

So what does that do for customers with 4g wimaxx. phones? Are we screwed from that and have to buy a new phone??
Sent from my MIUI powered Nexus S 4g using XDA Premium App

Esteway.619 said:
So what does that do for customers with 4g wimaxx. phones? Are we screwed from that and have to buy a new phone??
Sent from my MIUI powered Nexus S 4g using XDA Premium App
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Your phone will be well past its EOL by that point in time.

063_XOBX said:
Your phone will be well past its EOL by that point in time.
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Click to collapse
Ohh OK cool thanks for the info
Sent from my MIUI powered Nexus S 4g using XDA Premium App

Well I also wondered about current 4g customers and also those of us with an epic or any phone with wimax chipset, would it be considered breach of contract on sprints part if we can not use our phones with 4g even tho we r paying the monthly service even tho we do not have the coverage yet every where?
Sent from my SPH-D700 using XDA Premium App

jbadboy2007 said:
Any wimax phone will get a software upgrade to lte no need to hold on to your upgrade this has been discussed many times
Click to expand...
Click to collapse
you cant just upgrade to lte without any hardware changes. Lte is not just software based.

neuton said:
Well I also wondered about current 4g customers and also those of us with an epic or any phone with wimax chipset, would it be considered breach of contract on sprints part if we can not use our phones with 4g even tho we r paying the monthly service even tho we do not have the coverage yet every where?
Sent from my SPH-D700 using XDA Premium App
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Sprint does not guarantee 4G coverage in the contract. Otherwise many Epic users would have been able to get out of their contract by now due to the limited availability of 4G currently, a year later than the phone's release. Also Sprint will tell you the extra $10 a month has nothing to do with 4G but the amount of data the smartphone will use on their network. (I had this argument with them many times).

mak619 said:
you cant just upgrade to lte without any hardware changes. Lte is not just software based.
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Actually it is. Both wimax and lte operate on the similar protocol which is also similar to wifi the 802.xxxx protocol you only need a software upgrade to make these changes. But the real question here is will sprint release a software upgrade for an epic 1-2 years from now prolly not. This was heavily debated with facts in another thread SO TO ALL THAT DON'T HAVE PROOF OF WHAT YOU ARE TALKING ABOUT STFU

http://www.washingtonpost.com/busin...re-clearwire/2011/08/19/gIQA6QIrPJ_story.html

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
Click to expand...
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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.
Click to expand...
Click to collapse
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.
Click to expand...
Click to collapse
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.
Click to expand...
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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.
Click to expand...
Click to collapse
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.
Click to expand...
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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

Sprint may end deal with Lightsquared

http://www.bloomberg.com/news/2012-...-end-to-deal-with-falcone-s-lightsquared.html
Sprint Said to Plan End to Deal With Falcone’s LightSquar
By Scott Moritz and Olga Kharif - Mar 7, 2012 1:32 PM PT
Sprint Nextel Corp. (S) plans to end a network-sharing agreement with billionaire Philip Falcone’s LightSquared Inc. (SKYT) wireless venture as early as next week, according to two people familiar with the matter.
Sprint is preparing to take the step as LightSquared approaches a March 15 deadline to meet certain conditions under the agreement, said the people, who wouldn’t be identified because the information isn’t public. Sprint and LightSquared struck an 11-year deal to share network expansion costs and equipment in June provided LightSquared secure regulatory approvals for its wireless service by December. Though Sprint pushed the deadline back, it doesn’t plan more extensions, the people said.
The Sprint Nextel Corp. sign is seen on facade of a Sprint Nextel Corp. store in San Francisco, California. The loss of Sprint would fuel concerns about the viability of LightSquared. Photographer: David Paul Morris/Bloomberg
The loss of Sprint would fuel concerns about the viability of LightSquared and mark another setback for Falcone. The hedge fund manager has invested about $3 billion from his Harbinger Capital Partners in LightSquared in an effort to create a national wireless carrier to compete against AT&T Inc. (T) and Verizon Wireless. Harbinger managed about $4 billion at the end of last year, down from a peak of $26 billion in mid-2008.
Terry Neal, a LightSquared spokesman, and Scott Sloat, a Sprint spokesman, declined to comment. Lew Phelps, a spokesman for Falcone, said he had no comment.
Sprint rose 1.7 percent to $2.43 at the close in New York. Another Sprint network partner, wholesale carrier Clearwire Corp. (CLWR), climbed 4.8 percent to $2.18.
FCC Decision
Under their agreement last year, Overland Park, Kansas- based Sprint was to build and operate LightSquared’s network for 11 years in exchange for $9 billion in payments and an additional $4.5 billion in service credits. Sprint extended the deal’s deadline as the Federal Communications Commission considered whether to allow LightSquared to convert airwaves originally designated for satellite service for communication with land-based, or terrestrial, radio towers.
The FCC said last month it would block LightSquared’s planned network because of potential disruptions to global- positioning systems. The company said after the decision that it remains committed to finding a solution to the concerns.
In the wake of that decision, Chief Executive Officer Sanjiv Ahuja resigned and Falcone was appointed to the board as the company began a search for a new CEO. The company also cut 45 percent of its 330-member staff to preserve cash.
Nokia Siemens Networks, the wireless-equipment venture of Finland’s Nokia Oyj (NOK1V) and Germany’s Siemens AG (SIE), today said it stopped work in 2011 on the network it was building for LightSquared.
Skipped Payment
“While we have a contract with LightSquared, they previously asked us to put our activities related to the network build on hold while they resolve” issues concerning the global- positioning technology, a Nokia Siemens spokesman, Ben Roome, said by e-mail. LightSquared originally planned to spend $7 billion over eight years on the network, it said in July 2010.
LightSquared, based in Reston, Virginia, has paid Sprint $310 million in advanced payments for work on the network and its eventual operation. Sprint said in a securities filing last month that it would keep about $236 million of those payments and return as much as $74 million if the agreement was terminated after the March 15 deadline. If LightSquared’s lenders approve changes to the agreement, Sprint’s right to terminate will be deferred until June 25, according to the filing.
Effect on Clearwire
Clearwire may benefit if Sprint’s relationship with LightSquared ends. With LightSquared out of the picture, Sprint would have to rely on Clearwire’s network to meet its users’ bandwidth demands, Jennifer Fritzsche, a senior analyst at Wells Fargo Securities, said in a note today.
“We believe this news is very much expected and should not be seen as an additional negative surprise for Sprint shares,” Fritzsche said in the note.
A Clearwire spokeswoman, Susan Johnston, declined to comment.
Last month, LightSquared skipped a $56.3 million payment to its partner Inmarsat Plc (ISAT), a British satellite operator, saying the work promised hadn’t been finished.
Falcone told Harbinger investors in February that LightSquared is still exploring remedies like signal-filtering technology and a possible swap of frequencies with the military. As of the end of January, Falcone carried his investment in LightSquared’s equity at $1.5 billion, or about half of what his hedge fund had invested to date, according to a Harbinger document.
The company has also hired Moelis & Co. and other advisers to help study alternatives.
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What would be the effect of this in the future for LTE deployment? Discuss.

I don't think it will fully effect future LTE development, Sprint in my opinion was using Lightsquared to advance LTE deployment to various regions.
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Sprint has already made the Galaxy Nexus with LTE official, when they first saw problems I am sure sprint installed a back up plan
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Sprint was just using this deal to help them expand faster I believe.
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masaidjet said:
I don't think it will fully effect future LTE development, Sprint in my opinion was using Lightsquared to advance LTE deployment to various regions.
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The company who owns clearwire (WiMaXX), actually is the beginning where LTE branched off and took its ideas and formed LTE, which in essence Clearwire actually started 4G, so every other carrier may have LTE but if sprint gets LTE they actually will be fixing AT&T and Verizon LTE Towers lol

XxLostSoulxX said:
The company who owns clearwire (WiMaXX), actually is the beginning where LTE branched off and took its ideas and formed LTE, which in essence Clearwire actually started 4G, so every other carrier may have LTE but if sprint gets LTE they actually will be fixing AT&T and Verizon LTE Towers lol
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What?
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XxLostSoulxX said:
The company who owns clearwire (WiMaXX), actually is the beginning where LTE branched off and took its ideas and formed LTE, which in essence Clearwire actually started 4G, so every other carrier may have LTE but if sprint gets LTE they actually will be fixing AT&T and Verizon LTE Towers lol
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Clearwire is the long form of the marketed "Clear"
Wimax is the name of it's technology, not Company name.
LTE is different, and not the same, although currently claimed to be capable of speeds far greater than Wimax.
As for the towers, no comment there, I do recall hearing that towers are shared by companies with only their "boxes" to seperate signals but I don't know myself.
P.S. Clear doesn't need Sprint, while it did generate money, they have bigger affiliates and Investors. The contract between the two Is ending is all. Intel is one of them They're doing excellent in MetroPolitan areas.
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Shinydude100 said:
Clearwire is the long form of the marketed "Clear"
Wimax is the name of it's technology, not Company name.
LTE is different, and not the same, although currently claimed to be capable of speeds far greater than Wimax.
As for the towers, no comment there, I do recall hearing that towers are shared by companies with only their "boxes" to seperate signals but I don't know myself.
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I know wimaxx isn't company name, and towers yes ask sprint reps, LTe is based of Wimaxx.
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Shinydude100 said:
Clearwire is the long form of the marketed "Clear"
Wimax is the name of it's technology, not Company name.
LTE is different, and not the same, although currently claimed to be capable of speeds far greater than Wimax.
As for the towers, no comment there, I do recall hearing that towers are shared by companies with only their "boxes" to seperate signals but I don't know myself.
P.S. Clear doesn't need Sprint, while it did generate money, they have bigger affiliates and Investors. The contract between the two Is ending is all. Intel is one of them They're doing excellent in MetroPolitan areas.
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Clear lost a couple of its investors including google
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XxLostSoulxX said:
The company who owns clearwire (WiMaXX), actually is the beginning where LTE branched off and took its ideas and formed LTE, which in essence Clearwire actually started 4G, so every other carrier may have LTE but if sprint gets LTE they actually will be fixing AT&T and Verizon LTE Towers lol
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Reading this makes my head in essence might branch off and Clearwire hurt LTE too.

rando991 said:
Reading this makes my head in essence might branch off and Clearwire hurt LTE too.
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Huh??? didn't quite understand what you meant?

Sprints going to LTE. They noticed that their speeds weren't fast enough and were losing customers because of..
-2348z Epic 4G-> CM9 Beta0

2348z said:
Sprints going to LTE. They noticed that their speeds weren't fast enough and were losing customers because of..
-2348z Epic 4G-> CM9 Beta0
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Did you not just read anything SPRINT doesn't care for customers, their selfish just like any other Carrier its all about the Moo-Laa and not about the loyalty.
They might keep it but the way sprint does everything who knows we might just stay with WiMaxx and SOL

XxLostSoulxX said:
Did you not just read anything SPRINT doesn't care for customers, their selfish just like any other Carrier its all about the Moo-Laa and not about the loyalty.
They might keep it but the way sprint does everything who knows we might just stay with WiMaxx and SOL
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Where did you this? I want a good laugh.
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