Sunday, March 20, 2011

AT&T to Buy T-Mobile USA in $39 Billion Deal NYTimes

I just got this alert from the New York Times:


AT&T announced on Sunday that it has agreed to buy T-Mobile USA from Deutsche Telekom for $39 billion in cash and stock, in one of the biggest mergers since the onset of the financial crisis. The deal will dramatically bolster AT&T's footprint in the country, adding an additional 46.5 million customers.

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As a long time T-Mobile user I am kind of thrilled even though I moved to T-Mobile from Cingular (that evolved to AT&T). My purely speculative thoughts:

  • Coverage should get better. i have no complaints now – of course they could get worse too from what I have heard of AT &T call dropping but let’s be optimistic
  • Choice of phones will get better – Apple fans on T-Mobile could get the iPhone now, AT&T android fans will have other new phones to choose from
  • International travelers hopefully will get a wider choice ( this is purely speculative)

What I am apprehensive of is Customer Service. T-Mobile had excellent customer service and I hope that becomes a standard on AT&T. Anyway change is always good and I am looking forward to learning more.

If you read the press release from AT &T :

“AT&T and T-Mobile USA customers will see service improvements - including improved voice quality - as a result of additional spectrum, increased cell tower density and broader network infrastructure. At closing, AT&T will immediately gain cell sites equivalent to what would have taken on average five years to build without the transaction, and double that in some markets.  The combination will increase AT&T’s network density by approximately 30 percent in some of its most populated areas, while avoiding the need to construct additional cell towers. This transaction will increase spectrum efficiency to increase capacity and output, which not only improves service, but is also the best way to ensure competitive prices and services in a market where demand is extremely high and spectrum is in short supply”

I am a T-Mobile customer.  What will change for me?

  • This transaction itself will not have any impact on existing customers because until all regulatory approvals are obtained, the companies must continue to operate independently.  We anticipate the transaction will take approximately 12 months to close.
  • Once the transaction closes, T-Mobile customers will gain access to the benefits of AT&T’s network:
    • The nation’s fastest mobile broadband network getting faster with 4G speeds.
    • Access to an ever-expanding 4G LTE network
    • Broad portfolio of popular devices, including smartphones and tablets
    • Expanded free mobile-to-mobile calling (more than 100 million customers)
    • Access to 24,000+ Wi-Fi hotspots at no charge as a smartphone customer

For more information on the transaction, including background information and factsheets, visit

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