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  • AT&T to Acquire T-Mobile and Become the Largest US Wireless Provider


    In a surprise announcement that has rocked the mobile world Sunday, AT&T has announced what's being called a definitive agreement to acquire T-Mobile USA Deutsche Telekom for $39 billion in cash and stock combo. With this transaction, the wireless giant says in a formal statement heralding the buy, "AT&T commits to a significant expansion of robust 4G LTE 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."

    If the deal is ultimately given the green light via regulatory approval, AT&T will effectively become the largest wireless provider in the US. The move comes as a major blow to Verizon as the carriers (both of which now boast the iPhone) duke it out to an entirely new degree for mobile supremacy. By bringing T-Mobile customers into the fold at AT&T, the carrier is poised to potentially regain some of the mobile mojo it lost to Verizon earlier this year.

    “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.”

    To read the official announcement from AT&T, click here.

    Source: AT&T
    This article was originally published in forum thread: AT&T to Acquire T-Mobile and Become the Largest US Wireless Provider started by Michael Essany View original post
    Comments 306 Comments
    1. Mes's Avatar
      Mes -
      Quote Originally Posted by alexevo View Post
      Consider this: When you "roam" on T-Mobile's towers it definitely won't be under 3G and likely won't be under EDGE either. You will probably get GPRS service for a phone call or text but you won't be able to roam with data so you can't just say "there is no difference because I can roam on T-Mobile's towers when I'm not within range of an AT&T tower."

      ^ The first reason is because of the frequency programming of the phone, the 2nd is because of limitations imposed by both networks, and the 3rd is just for convenience.

      By buying their network AT&T is strengthening their coverage in areas where T-Mobile was stronger and AT&T was weaker, they are also giving expanded coverage to places where AT&T was stronger and T-Mobile was weaker, and in areas where they were both strong the higher capacity will allow for more data usage by all the users. In places where they are both weak, there will be slight improvements which are always welcome.
      All of this could be accomplished WITHOUT a merger.

      Mergers reduce competition. Less competition is NEVER good for consumers!
    1. squassss's Avatar
      squassss -
      Quote Originally Posted by Mes View Post
      All of this could be accomplished WITHOUT a merger.

      Mergers reduce competition. Less competition is NEVER good for consumers!
      How could this have been done without a merger?
    1. Mes's Avatar
      Mes -
      Quote Originally Posted by squassss View Post
      How could this have been done without a merger?
      You're kidding right? The same way WITH a merger, while keeping two separate companies.
    1. Gr0undBreak1ng's Avatar
      Gr0undBreak1ng -
      Seriously
    1. alexevo's Avatar
      alexevo -
      Quote Originally Posted by squassss View Post
      How could this have been done without a merger?
      What he's saying is that they could have just spent the 39 billion on expanding their network instead. Which is true but the thing about mergers reducing competition and being bad isn't necessarily the case.

      Let's be realistic, in the last 3 or 4 even 5 years T-Mobile never really was competition for AT&T in a serious way. The "competitor" has always been Verizon just like Sprint has never really been competition for Verizon in a serious way.

      I don't know why most of you have been complaining about AT&T's customer service. I have never had a problem with them so I don't know where this perceived difference comes from. Perhaps you asked for something either they didn't offer or asked for something you didn't deserve and they said no and you threw a tantrum?

      I had a problem with my old Palm Treo 650 back in the day where Blazer(the web browser) would stay running and eating up data and at the time I didn't have an unlimited data plan so I racked up a huge bill with data and I called them and even went as far to offer that I would uninstall Blazer to which they replied that it wouldn't be necessary and they would remove the charges and just asked me to go through it with a tech specialist which I did. He wasn't able to solve the problem but a few hours on treocentral.com helped me out and I fixed it. Either way their customer service wasn't bad. Every time I've called I have had my problems fixed one way or another.

      I've never had T-Mobile but I have had Verizon and they were just the same as AT&T. Never a problem with them.

      I think most of these customer service problems with AT&T are probably your fault for doing something you shouldn't have or you just weren't paying attention to your usage or something else. I've never been billed for something I didn't deserve nor have I asked for something I wasn't entitled to.

      T-Mobile might have bent over more and given you more because they were more desperate for customers than AT&T and had to keep what they had so that probably gave the perception of better customer service in that they'd let you get away with a lot more and charge you less.
    1. Mes's Avatar
      Mes -
      ^Ladies and gentlemen, my issue is NOT whether one is better (or worse) than the other. Everyone has their own opinions, their own experiences ... and that's ok.

      The issue is consumers will have fewer choices. Plain and simple! Whether their choice be cost, coverage, phone, or what-ever.

      The end-result is fewer choices!

      Do AT&T/T-Mobile consumers really want fewer choices? I don't think so!
      We want BETTER / FASTER coverage, service, etc, etc, etc. This could easily be accomplished by AT&T/T-Mobile working closer together and costing both companies a whole lot less moola
    1. Gr0undBreak1ng's Avatar
      Gr0undBreak1ng -
      True i agree
    1. squassss's Avatar
      squassss -
      So how is losing one company from the market losing that many choices? Why would two competing companies work together when T-mobile was never really competition in the first place? 39 billion is really not that much money considering the cost of the Bell South merger of 2006. By absorbing T-mobile instead of "working together" AT&T will both eliminate a competitor and secure the market share for AT&T. There are already tons of competitors out there. Spring, Verison, MetroPCS, US Cellular,.. just to name a few. Just because they don't have a decent market share doesn't mean they don't count.

      On the flip side I do understand peoples concerns about losing the pricing options from T-Mobile and I do hope they keep those pricing options. However over the last year AT&T pricinig has gotten much better. Especially with the family plan pricing.

      Trust me, there are people way above yours and my level who have thought this out financially to assess which is more cost effective and they are far better at making these assessments than any armchair CEO/CFO/CIO can possibly be.
    1. Gr0undBreak1ng's Avatar
      Gr0undBreak1ng -
      True, T-Mobile wasn't much of a competitor with the other carriers. Not even with Sprint. Only Verizon and AT&T has the major rivalry.
    1. Mes's Avatar
      Mes -
      Quote Originally Posted by squassss View Post
      ...Trust me, there are people way above yours and my level who have thought this out financially to assess which is more cost effective and they are far better at making these assessments than any armchair CEO/CFO/CIO can possibly be.
      I don't need to trust you. Been there, done that, many times.

      At the moment, you're a unbeliever .... When it personally bites you in the back-side, then maybe you'll change your tune. Corporations primary job is to make stock-holders money. That does not always mean best for the consumer.

      Fewer choices are never good for consumers.
    1. squassss's Avatar
      squassss -
      I'm not worried in the slightest. I'm a lot closer to this than you might think. I just don't have to wave my credentials around to try and make people see my point of view. Like I said... it's the internet where everyone is a CEO and dates supermodels. As a consumer I can guarantee you this will never bite me in the ***.
    1. Mes's Avatar
      Mes -
      Quote Originally Posted by squassss View Post
      Trust me.. ...I'm a lot closer to this than you might think.
      That explains it. An AT&T troll.....

      Name one, just ONE consumer advocacy group who supports this!!
    1. squassss's Avatar
      squassss -
      Quote Originally Posted by Mes View Post
      That explains it. An AT&T troll.....
      Why would this make me an AT&T troll? Nice try... once again you fail.
    1. Mes's Avatar
      Mes -
      ^One non-consequential opinion. You fail!
    1. squassss's Avatar
      squassss -
      Quote Originally Posted by Mes View Post
      ^One non-consequential opinion.
      sigh... is this what it comes to? Back to the "nuh uhs" again.
    1. Jjroot's Avatar
      Jjroot -
      Great! Monopolistic expansion means fewer choices for consumers. Look forward to more expensive plans.
    1. squassss's Avatar
      squassss -
      Quote Originally Posted by Jjroot View Post
      Great! Monopolistic expansion means fewer choices for consumers. Look forward to more expensive plans.
      lol because one company out of over a dozen is gone. OH NOES the interweb is falling!
    1. Mes's Avatar
      Mes -
      Quote Originally Posted by Jjroot View Post
      Great! Monopolistic expansion means fewer choices for consumers. Look forward to more expensive plans.
      Finally, someone gets it!
    1. gQstatus05's Avatar
      gQstatus05 -
      Quote Originally Posted by squassss View Post
      lol because one company out of over a dozen is gone. OH NOES the interweb is falling!
      I would like to you name a dozen since you know so much about the topic.

      If this merger happens it would make them the only GSM carrier in the USA. This move was made to set the standard for LTE pricing when it becomes widely available. If this goes through I guarantee you that VZW will most likely buyout Sprint. All it's going to take is a couple of political contributions and lining of pockets to get this to go through.

      If it does go through they'll probably force AT&T to give some subscribers to another carrier along with some towers like they made Verizon do with Alltel.
    1. Kupe's Avatar
      Kupe -
      Wow- how did this get past anti-trust review? There are only two GSM providers in the US. Now there will be only one?