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  (Source: Comedy Central)

Say goodbye to the T-Mobile girl
AT&T to shake up the U.S. wireless market with T-Mobile purchase

Well, that one came of left field. It was just a few weeks ago that we were talking about the possibility of Sprint snatching up T-Mobile from Deutsche Telekom. However, the tables turned today when AT&T announced that it would be purchasing T-Mobile for $39 billion USD – the actual breakdown will include $25 billion in cash and the rest in stock.

"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.

"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.”

The deal would of course have to be approved by U.S. regulating bodies, but if all goes well, AT&T and Deutsche Telekom hope to have the transition finalized within the next year. 

AT&T currently has 95.5 million customers putting in second place behind Verizon’s 102.2 million customers. Adding T-Mobile’s 33.7 million customers will make AT&T the largest wireless carrier in the U.S. by far. 

AT&T is also looking to boost its nascent LTE efforts with this transaction, and will bring the technology to 95 percent of the U.S. population. AT&T will also spend an additional $8 billion over the next five years to boost its infrastructure investment within the U.S. 

We can only hope that the T-Mobile acquisition, broadened LTE deployments, and increased spending on infrastructure will improve AT&Ts famously "fragile" wireless network. 

AT&T made headlines last week – and drew the wrath of many – when it announced that it would start cracking down on users that were using “illegal” jailbreak apps to tether data with their smartphones.



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RE: overcharge
By jouno53 on 3/20/2011 3:17:46 PM , Rating: 0
Like it or not, businesses are in the business to make money. As the customer, you have the freedom to not purchase a good or service from said business, because it's YOUR choice. If you don't like AT&T (as I don't), do not invest in or purchase from them. It's as simple as that. Once the government gets involved, businesses must defend themselves against dogmatic regulation and taxes that are passed onto the customers.


RE: overcharge
By Solandri on 3/20/2011 3:51:00 PM , Rating: 2
Along those lines, if you have money in mutual and index funds, you may very well be investing in companies you don't like. Mutual funds and index funds are a great way to mitigate risk by spreading your investments out to a wide variety of stocks for little work on your part. But you still have to do your due diligence, and decide whether or not you want to invest in a company based on your principles.

When the housing bubble burst, it turned out mortgage brokers and banks had repackaged bad mortgages into collateralized debt obligations (CDOs). The market bought these bad investments up in droves (thus feeding the bubble) because (1) the rating agencies failed to properly vet and rate CDOs, and (2) buyers of mutual funds didn't do their due diligence and raise objections with their fund managers that these things were new and untested. I checked mine after the bubble popped and sure enough, there in the prospectus, a small amount (less than 1%) was in a type of CDO. Individually it lost value for the year, but the fund as a whole made money so I never even noticed it while it was happening.

If you were wondering who the idiots were who were buying the CDOs and feeding the housing bubble, try looking in a mirror.


RE: overcharge
By integr8d on 3/20/2011 4:34:27 PM , Rating: 5
If only it were so. Unfortunately, the regulations that you say these companies have to defend themselves from are usually written by those very companies. In our current (corrupt) system of government, the regulations only serve to BENEFIT the companies. The left will praise any regulation, as the mere word is like catnip to their ears. But most, if any, look past the title of the bill and into what it actually says. They depend on tv, print and 'sanitized' web to find their info.

It's like this: The big taco chain is facing competition from local vendors. They want them gone. So maybe a little bad food is sold or maybe they catch some deadly bacteria in the 'nick of time'. The government comes in and says, "Regulaaaaators! Riiide out..." And with the passing of a bill, all taco chains are required to buy a nice $50,000 bacterial screening device and pay an FDA inspector to inspect their establishments every week.

Yay. The people are safe again!

But 95% of Monster Taco Chain's competitors are put out of business overnight. Monster Taco graciously offers to buy their competitor's establishments for pennies on the dollar. Maybe Monster Taco takes a few hit from lawsuits. But they're also the only ones remaining. And that's all that matters... Businesses are smart. They know how to game the system from both sides.

The reason AT&T may once again become Ma Bell has nothing to do with buying T-Mo. It's because favorable regulations will be put in place to limit their competition (the same reason you only have ONE choice of telephone/DSL provider and ONE choice of cable/internet provider).

How long before AT&T becomes 'too big to fail'?


RE: overcharge
By tng on 3/21/2011 10:41:33 AM , Rating: 3
This is the way it is. You will find plenty of instances where companies like GE, Honeywell and other large corporations have lobbied federal, state and local governments for regulations that would cost the companies allot of money to comply with.

All of these large companies can afford to comply with regulation knowing that upstarts who may have a better product can't. That better product never comes to market because larger corporations have regulated them out of the market. There is allot of innovation out there that we have never seen because of this type of behavior.


RE: overcharge
By sviola on 3/21/2011 11:07:28 AM , Rating: 2
Although businesses are in it for the money, the best situation is when both Win, not only one side, of course, that means the business has to get a little less profit and usually that's unthinkable.


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