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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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Boo...
By jay401 on 3/20/2011 3:50:02 PM , Rating: 2
What a shame. One of the few things keeping AT&T from even more vicious pricing practices is now being absorbed into AT&T.

If TMobile were being bought by Sprint, as was rumored last month, at least that would have kept competitive pressure on AT&T.

This though, can only be bad news for the consumer. :(




RE: Boo...
By Kurz on 3/20/2011 10:33:38 PM , Rating: 2
Blame the government for preventing competition from coming into the market place.


RE: Boo...
By AEvangel on 3/21/2011 11:03:50 AM , Rating: 2
quote:
To mollify regulators, AT&T said in a statement Sunday that it would spend an additional $8 billion to expand ultrafast wireless broadband into rural areas. Instead of covering about 80 percent of the U.S. population with its so-called Long Term Evolution, or LTE network, AT&T's new goal would be 95 percent, it said. That means blanketing an additional area 4.5 times the size of Texas. The network is scheduled to go live in a few areas this summer, but the full build-out will take years. The offer would help the FCC and the Obama administration meet their stated goals of bringing high-speed Internet access to all Americans. They see wireless networks as critical to meeting that goal – particularly in rural areas where it does not make economic sense to build landline networks.


Govt bought and paid for..not to mention rural customers held captive.


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