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AT&T to buy T-Mobile USA

Quote:

AT&T Inc. (ATT-N26.210.010.04%) said Sunday it would buy Deutsche Telekom AG’s T-Mobile USA, in a $39-billion cash-and-stock transaction that would create a new industry behemoth by combining two of the four largest U.S. wireless carriers...

As part of the deal, Deutsche Telekom will get about 8 per cent stake in AT&T, and a Deutsche Telekom representative will join the AT&T board... The agreement has been approved by the boards of both companies.

AT&T to buy T-Mobile USA | Reuters

Quote:

But the world's largest deal announced so far this year, which will bump Verizon Wireless from its No. 1 U.S. position, could raise the ire of U.S. consumers and regulators as analysts expect it to result in wireless service price increases. Consumers currently look to T-Mobile USA for some of the best value wireless service rates.

The transaction will increase AT&T's U.S. market share to an estimated 43 percent from 32 percent, putting it well ahead of Verizon Wireless's current 34.5 percent share of U.S. mobile customers, according to Tolaga Research estimates. AT&T will add 34 million customers to its current 96 million subscriber list.

As a sign of AT&T's confidence the deal will pass regulatory muster, it agreed to pay an unusually high breakup fee of $3 billion and to give T-Mobile USA wireless airwaves if regulators reject it. But they may be over-confident...

I certainly hope this fails. And once again, where was Vodafone in all this?

looks like the US telco market goes back into monopoly sooner or later...

Quote:

Originally Posted by Motel75 (Post 36213)

I certainly hope this fails. And once again, where was Vodafone in all this?

Remember that Vodafone owns 40% of Verizon. When LTE rolls out, former CDMA and former GSM networks will talk to each other perfectly, (e.g. they won't need TMobile). I would have loved to see Wind (which is in Canada) come to the US as well. The Russian money in Wind could make Homeland Security nervous.

In case anyone is wondering about which phones are fully compatible with both networks right now, there are: Nokia N8, C7-00 (aka Nokia Astound), E7, C6-01; & the Dell Streak 7 & Samsung Tab tablets.

Does anyone have any idea what this merge/buy-out would mean for the MVNOs like Simple Mobile, H2O Wireless, Red Pocket, Straight Talk, & others like TruPhone (who seem to use both networks already but only for business customers - they're trying to get access to both networks for consumers as well)?

Quote:

Originally Posted by adam917 (Post 36219)

In case anyone is wondering about which phones are fully compatible with both networks right now, there are: Nokia N8, C7-00 (aka Nokia Astound), E7, C6-01; & the Dell Streak 7 & Samsung Tab tablets.

The Nokia Nuron is semi-compatible too. It has 3G AWS and 850 MHz but not 1900 MHz.

Quote:

Originally Posted by PhotoJim (Post 36220)

The Nokia Nuron is semi-compatible too. It has 3G AWS and 850 MHz but not 1900 MHz.

So is the Samsung Vibrant (1900 & 1700 but no 850).

There are probably several models that are partially compatible but since AT&T usually uses both bands in their markets w/ both bands, it doesn't make sense buying a phone that may not work where you're using it because it's missing a band. Similar to buying a phone w/o GSM 850 but wanting to use it on AT&T or Rogers expecting to still have good service on only 1900.

Quote:

Originally Posted by Stu (Post 36217)

Remember that Vodafone owns 40% of Verizon.

Sure, but the head of DT once said that Voda had made it clear that if he ever felt like selling, he'd have a buyer. (Of course, they'd have to untange the messy arrangement with Verizon, but this wouldn't stop it.) Apart from Sprint and AT&T, there was an anonymous "third bidder" - this could have been Vodafone, but it could also have been Carlos Slim, or Telefonica, or something entirely different.

Having said that, one scenario I could imagine is having Vodafone convert its 44 percent ownership of Verizon Wireless to a somewhat smaller percentage of Verizon itself (and swapping out Verizon's remaining 22 percent ownership of Vodafone Italia while they do this). This would make it easier for Vodafone to increase control over VZ, which is why something like this probably hasn't happened, but it would also make it easier for Vf to exit Verizon if it wanted to.

Quote:

Originally Posted by Stu (Post 36217)

I would have loved to see Wind (which is in Canada) come to the US as well. The Russian money in Wind could make Homeland Security nervous.

I'm sure. (The Egyptian money by itself would be problematic!) But now the biggest single shareholder in AT&T is going to be Deutsche Telekom, which is quite interesting, as the two firms really won't be competing head-to-head anywhere if the merger clears.

Now it seems the Nokia Astound (US C7) will not have 1900 MHz UMTS. :-(