AT&T Acquires T-Mobile USA from Deutsche Telekom for $39 Billion

POST

MAIL

Posted March 20, 2011 at 3:28pm by iClarified

AT&T and Deutsche Telekom AG 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. This will bring the combined user base to 130 million leaving AT&T to be the only national carrier GSM in the US.

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.

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.

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.

Read More [via Engadget]

AT&T Acquires T-Mobile USA from Deutsche Telekom for $39 Billion

Follow iClarified

xntrick - March 21, 2011 at 3:47pm

What did T Mobike lie about?

Reply · Like

iceblu121 - March 21, 2011 at 10:50am

so is this good news for us att customers? does this mean we will be able to fill in those dead spots picking up t mobiles towers? is this good for us? so there will be no more T MOBILE? is that correct?

Kentwang - March 21, 2011 at 12:14pm

Less competition, price will go up for our service. I don't think this is good.

Gsauce - March 21, 2011 at 1:24am

So I have an iPhone 4 iOS 4.1 with Tmobile. I have the 10 dollar edge Internet plan that I am perfectly content with. What would change in my phone with this merging?? Would I no longer have to worry about a software unlock? Would I be able to Just use my iPhone by getting a new sim card??

kentwang - March 21, 2011 at 1:04am

This is bad! If T mobile wasnot bought by AT&T, Sprint bought it would be good, then att and tmobile will sell lock iphone, that's ok, but Apple will sell unlock iphone like Canada. but now there is no competition, US wouldnot have to carry unlocked iphone. But who know? may be all iphone will be unlocked so they will sell more phone.

afadf - March 20, 2011 at 10:19pm

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. From TMO website

Triaji - March 20, 2011 at 7:28pm

I predicted this...tmobile got what they deserved...lying to their customers that they're better than att. Hmph!

Cyber Mafia - March 20, 2011 at 5:23pm

Hmmm before Apple add T-Mobile one of there additional Carrier AT&T played there cards this will be really interesting.

Rod - March 20, 2011 at 4:58pm

Maybe the new iPhones wont be locked to carrier since there is only one in the US...

Stephen - March 20, 2011 at 10:12pm

The US is the only place in the world that has so few carriers. They will be popping out soon as Consumers figure out GSM is the future and CDMA is Fred flint stone Technology.

b-man - March 20, 2011 at 4:32pm

this should be interesting.....

Henry - March 20, 2011 at 4:11pm

I predicted this was going to happen after T-Mobile lost like 300,000 subscribers in the 4Q.

MikeKrotch - March 20, 2011 at 4:05pm

At&t taken over like Apple is doing!!