AT&T to Acquire T-Mobile USA for $39 Billion

[diamond.g]

This is a great thing for current AT&T customers. They should expect better cell phone reception (something they're working hard at currently) among other things.

New York and San Fran are well known problem areas and this will go a long way toward fixing the network (so will LTE, for that matter, because it will take the strain off the HSPA+ towers).

Verizon will NOT buy Sprint. That move would be blocked by the FCC. FCC is hell bent on having 3 major carriers and won't screw that one up.

You could see this purchase benefitting Sprint because they'll likely receive a certain amount of assets that the FCC won't allow (think Verizon/Alltel).

The HPSA+ advantage while both Verizon and AT&T rollout LTE cannot be emphasized enough. That is a **HUGE** competitive advantage for AT&T. HUGE.

Think of it this way: Both companies' LTE coverage will be spotty for the next 3-5 years. Would you rather be able to drop to HSPA+ (the same speed as Sprint's WiMax 4G)? or would you rather drop to EV-DO? One is still blazing fast (see articles on T-Mobile's HSPA+ Network), while the other is like falling off a cliff. And you can't do voice and data at the same time.

AT&T is on the way back, I think. Competition will always exist because the government won't allow a duopoly (I think they'll bail out Sprint before they allow a Verizon purchase).

I didn't think t-mobiles AWS band would help AT&T with their signal.

 

[kdarling]

Think of it this way: Both companies' LTE coverage will be spotty for the next 3-5 years.

Or less. Verizon claims they'll have LTE across their entire 3G footprint by the end of 2013.

Would you rather be able to drop to HSPA+ (the same speed as Sprint's WiMax 4G)? or would you rather drop to EV-DO?

Well, EVDO is everywhere today. So if we go out of Verizon LTE coverage, you can almost guarantee that we only drop to 3G.

UMTS-3G... not so much. If we go out of ATT LTE coverage, we could just as easily drop to EDGE instead.

(Unless you think that ATT is going to have 3G everywhere because of their merger.)

 

[Ammo]

Or less. Verizon claims they'll have LTE across their entire 3G footprint by the end of 2013.



Well, EVDO is everywhere today. So if we go out of Verizon LTE coverage, you can almost guarantee that we only drop to 3G.

UMTS-3G... not so much. If we go out of ATT LTE coverage, we could just as easily drop to EDGE instead.

(Unless you think that ATT is going to have 3G everywhere because of their merger.)

The merger opens up a LOT in terms of capacity and coverage for AT&T.

And either way, AT&T has been investing heavily in the network in order to match/exceed Verizon. They're done playing games.

This map says a LOT about how much this purchase benefits AT&T: http://www.mobilizeeverything.com/lte.php

 

[rdowns]

I find it quite comical that T-Mobile is still running its TV ads bashing ATT.

 

[tigres]

Sprint speaks up!

From Sprint Press release:

Sprint Opposes Proposed AT&T Acquisition of T-Mobile USA
Transaction would reduce competition and harm consumers

OVERLAND PARK, Kan. (BUSINESS WIRE), March 28, 2011 - Sprint Nextel [NYSE:S], the nation's third largest wireless provider and a leader in advanced wireless broadband technologies, announced today its opposition to AT&T's proposed $39 billion takeover of T-Mobile USA.

The transaction, which requires the approval of the Department of Justice and the Federal Communications Commission, and will likely spark a host of hearings in the U.S. Congress, would reverse nearly three decades of actions by the U.S. government and the courts that modernized and opened U.S. communications markets to competition. The wireless industry has sparked unprecedented levels of competition, innovation, job creation and investment for the American economy, all of which could be undone by this transaction.

AT&T and Verizon are already by far the largest wireless providers. If approved, the proposed acquisition would create a combined company that would be almost three times the size of Sprint in terms of wireless revenue and would entrench AT&T's and Verizon's duopoly control over the wireless market. The wireless industry moving forward would be dominated overwhelmingly by two vertically integrated companies with unprecedented control over the U.S. wireless post-paid market, as well as the availability and price of key inputs, such as backhaul and access needed by other wireless companies to compete.

"Sprint urges the United States government to block this anti-competitive acquisition," said Vonya McCann, senior vice president, Government Affairs. "This transaction will harm consumers and harm competition at a time when this country can least afford it. As the first national carrier to roll out 4G services and handsets and the carrier that brought simple unlimited pricing to the marketplace, Sprint stands ready to compete in a truly dynamic marketplace. So on behalf of our customers, our industry and our country, Sprint will fight this attempt by AT&T to undo the progress of the past 25 years and create a new Ma Bell duopoly."

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 49.9 million customers at the end 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, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. Newsweek ranked Sprint No. 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 http://www.sprint.com or http://www.facebook.com/sprint and http://www.twitter.com/sprint.

 

[zap2]

I didn't think t-mobiles AWS band would help AT&T with their signal.

Those bands are going to go towards AT&T's LTE network...so it won't help AT&T customers in the future(so current T Mobile and AT&T ones) with 3G, it will help them with 4G, which is arguable more important(at least for me)

 

[iliketyla]

Excuse me if this has been addressed previously, but as I understand it Verizon and AT&T have some 90+ Million customers.

If the acquisition goes through that would solidify AT&T as the largest carrier in the U.S. by quite a large margin correct?

 

[diamond.g]

Those bands are going to go towards AT&T's LTE network...so it won't help AT&T customers in the future(so current T Mobile and AT&T ones) with 3G, it will help them with 4G, which is arguable more important(at least for me)

Uh, I was under the impression that the 700Mhz freq that AT&T got was going to be used for LTE not the 1700/2100 Mhz bands that T-Mobile uses.

 

[butterfly0fdoom]

Uh, I was under the impression that the 700Mhz freq that AT&T got was going to be used for LTE not the 1700/2100 Mhz bands that T-Mobile uses.

If the acquisition does not pass, then yes, AT&T will only have the 700 band to use for LTE; AT&T doesn't have a whole of of spectrum in that band, though; Verizon dominated that auction. However, if the acquisition is approved, then AT&T will be able to use T-Mobile's wide-spread AWS bands, which would be much more effective.

 

[gkarris]

T-Mobile USA Users:

Anybody else getting texts from T-Mobile about all the crazy specials they've started? One is 20% off data if you buy a tablet from them.

I guess people were jumping ship to Sprint...

The deals are pretty good - surprises me but if it keeps customers... plus, a T-Mobile customer now is an AT&T one later...

 

[bergmef]

The merger opens up a LOT in terms of capacity and coverage for AT&T.

And either way, AT&T has been investing heavily in the network in order to match/exceed Verizon. They're done playing games.

This map says a LOT about how much this purchase benefits AT&T: http://www.mobilizeeverything.com/lte.php

It can benefit ATT if it goes through, but when or 'if'? I had to read the map twice, I'm a little slow. I was thinking if att had this much lte coverage, thay should be slapping verizon (claiming 100 million or so covered) around in the media. And not calling what they have as 4G. But they aren't. Then I read the wording again:

4G LTE Coverage Maps
With T-Mobile, AT&T can deploy 4G LTE to more than 97% of U.S. population, enabling network capacity for the U.S. high-tech industry and a virtuous cycle of innovation and growth ...

So as I read it now, the first is what they could build with current towers and the second is what they could build if they get the merger through. Not 'new' lte capacity because some still has to get out there and install the equipment. My worry would be short term ... people with poor coverage on the other carrier now hitting the att towers.

 

[AWallen90]

I would love me some HSPA+

 

[tigres]

US lags behind the world in data speeds and costs.

For those who may have missed this article and video, I highly recommend a look.


http://www.engadget.com/2011/06/28/why-is-european-broadband-faster-and-cheaper-blame-the-governme/