BREAKING: AT&T Acquires T-Mobile From Deutsche Telekom

Wow, wow, wow…AT&T just announced it is acquiring T-Mobile USA from Deutsche Telekom. I don’t know even know what to say…full press release follows:

AT&T to Acquire T-Mobile USA from Deutsche Telekom

Provides Fast, Efficient and Certain Solution to Impending Spectrum Exhaust Challenges Facing AT&T and T-Mobile USA in Key Markets Due to Explosive Demand for Mobile Broadband

Enhances Network Capacity, Output and Quality in Near Term for Both Companies’ Customers

AT&T Commits to Expand 4G LTE Deployment to an Additional 46.5 Million Americans, Including in Rural, Smaller Communities, for a Total of 294 Million or 95% of the U.S. Population

Provides 4G LTE Service for T-Mobile USA’s 34 Million Subscribers

More Than $8 Billion in Incremental Infrastructure Spend by a U.S. Company over Seven Years, Enabling Nation’s High-Tech Industry, Innovation and Economic Growth

Creates Substantial Value for AT&T Shareholders Through Large, Straightforward Synergies

DALLAS & BONN, Germany–(BUSINESS WIRE)–AT&T Inc. (NYSE: T) and Deutsche Telekom AG (FWB: DTE) 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. The agreement has been approved by the Boards of Directors of both companies.

“This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation’s future”

AT&T’s acquisition of T-Mobile USA provides an optimal combination of network assets to add capacity sooner than any alternative, and it provides an opportunity to improve network quality in the near term for both companies’ customers. In addition, it provides a fast, efficient and certain solution to the impending exhaustion of wireless spectrum in some markets, which limits both companies’ ability to meet the ongoing explosive demand for mobile broadband.

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.

“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.”

Stephenson continued, “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.”

Deutsche Telekom Chairman and CEO René Obermann said, “After evaluating strategic options for T-Mobile USA, I am confident that AT&T is the best partner for our customers, shareholders and the mobile broadband ecosystem. Our common network technology makes this a logical combination and provides an efficient path to gaining the spectrum and network assets needed to provide T-Mobile customers with 4G LTE and the best devices. Also, the transaction returns significant value to Deutsche Telekom shareholders and allows us to retain exposure to the U.S. market.”

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.

Competition and Pricing

The U.S. wireless industry is one of the most fiercely competitive markets in the world and will remain so after this deal. The U.S. is one of the few countries in the world where a large majority of consumers can choose from five or more wireless providers in their local market. For example, in 18 of the top 20 U.S. local markets, there are five or more providers. Local market competition is escalating among larger carriers, low-cost carriers and several regional wireless players with nationwide service plans. This intense competition is only increasing with the build-out of new 4G networks and the emergence of new market entrants.

The competitiveness of the market has directly benefited consumers. A 2010 report from the U.S. General Accounting Office (GAO) states the overall average price (adjusted for inflation) for wireless services declined 50 percent from 1999 to 2009, during a period which saw five major wireless mergers.

Addresses wireless spectrum challenges facing AT&T, T-Mobile USA, their customers, and U.S. policymakers

This transaction quickly provides the spectrum and network efficiencies necessary for AT&T to address impending spectrum exhaust in key markets driven by the exponential growth in mobile broadband traffic on its network. AT&T’s mobile data traffic grew 8,000 percent over the past four years and by 2015 it is expected to be eight to 10 times what it was in 2010. Put another way, all of the mobile traffic volume AT&T carried during 2010 is estimated to be carried in just the first six to seven weeks of 2015. Because AT&T has led the U.S. in smartphones, tablets and e-readers – and as a result, mobile broadband – it requires additional spectrum before new spectrum will become available. In the long term, the entire industry will need additional spectrum to address the explosive growth in demand for mobile broadband.

Improves service quality for U.S. wireless customers

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.

Expands 4G LTE deployment to 95 percent of U.S. population – urban and rural areas

This transaction will directly benefit an additional 46.5 million Americans – equivalent to the combined populations of the states of New York and Texas – who will, as a result of this combination, have access to AT&T’s latest 4G LTE technology. In terms of area covered, the transaction enables 4G LTE deployment to an additional 1.2 million square miles, equivalent to 4.5 times the size of the state of Texas. Rural and smaller communities will substantially benefit from the expansion of 4G LTE deployment, increasing the competitiveness of the businesses and entrepreneurs in these areas.

Increases AT&T’s investment in the U.S.

The acquisition will increase AT&T’s infrastructure investment in the U.S. by more than $8 billion over seven years. Expansion of AT&T’s 4G LTE network is an important foundation for the next wave of innovation and growth in mobile broadband, ensuring the U.S. continues to lead the world in wireless technology and availability. It makes T-Mobile USA, currently a German-owned U.S. telecom network, part of a U.S.-based company.

An impressive, combined workforce

Bringing AT&T and T-Mobile USA together will create an impressive workforce that is best positioned to compete in today’s global economy. Post-closing, AT&T intends to tap into the significant knowledge and expertise held by employees of both AT&T and T-Mobile USA to succeed. AT&T is the only major U.S. wireless company with a union workforce, offering leading wages, benefits, training and development for employees. The combined company will continue to have a strong employee and operations base in the Seattle area.

Consistent with AT&T’s track record of value-enhancing acquisitions

AT&T has a strong track record of executing value-enhancing acquisitions and expects to create substantial value for shareholders through large, straightforward synergies with a run rate of more than $3 billion, three years after closing onward (excluding integration costs). The value of the synergies is expected to exceed the purchase price of $39 billion. Revenue synergies come from opportunities to increase smartphone penetration and data average revenue per user, with cost savings coming from network efficiencies, subscriber and support savings, reduced churn and avoided capital and spectrum expenditures.

The transaction will enhance margin potential and improve the company’s long-term revenue growth potential as it benefits from a more robust mobile broadband platform for new services.

Additional financial information

The $39 billion purchase price will include a cash payment of $25 billion with the balance to be paid using AT&T common stock, subject to adjustment. AT&T has the right to increase the cash portion of the purchase price by up to $4.2 billion with a corresponding reduction in the stock component, so long as Deutsche Telekom receives at least a 5 percent equity ownership interest in AT&T.

The number of AT&T shares issued will be based on the AT&T share price during the 30-day period prior to closing, subject to a 7.5 percent collar; there is a one-year lock-up period during which Deutsche Telekom cannot sell shares.

The cash portion of the purchase price will be financed with new debt and cash on AT&T’s balance sheet. AT&T has an 18-month commitment for a one-year unsecured bridge term facility underwritten by J.P. Morgan for $20 billion. AT&T assumes no debt from T-Mobile USA or Deutsche Telekom and continues to have a strong balance sheet.

The transaction is expected to be earnings (excluding non-cash amortization and integration costs) accretive in the third year after closing. Pro-forma for 2010, this transaction increases AT&T’s total wireless revenues from $58.5 billion to nearly $80 billion, and increases the percentage of AT&T’s total revenues from wireless, wireline data and managed services to approximately 80 percent.

This transaction will allow for sufficient cash flow to support AT&T’s dividend. AT&T has increased its dividend for 27 consecutive years, a matter decided by AT&T’s Board of Directors.

Conditions

The acquisition is subject to regulatory approvals, a reverse breakup fee in certain circumstances, and other customary regulatory and other closing conditions. The transaction is expected to close in approximately 12 months.

Advisors

Greenhill & Co., J.P. Morgan and Evercore Partners acted as financial advisors and Sullivan & Cromwell LLP, Arnold & Porter, and Crowell & Moring provided legal advice to AT&T.

Conference Call/Webcast

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. Please log in 15 minutes ahead of time to test your browser and register for the call.

For dial-in access, please dial +1 (888) 517-2464 within the U.S. or +1 (630) 827-6816 outside the U.S. after 7:30 a.m. ET. Enter passcode 8442095# to join or ask the conference call operator for the AT&T Investor Relations event.

The webcast will be available for replay on AT&T’s Investor Relations website on March 21, 2011, starting at 12:30 p.m. ET through April 21, 2011. An archive of the conference call will also be available during this time period. To access the recording, please dial +1 (877) 870-5176 within the U.S. or +1 (858) 384-5517 outside the U.S. and enter reservation code 29362481#.

Transaction Website

For more information on the transaction, including background information and factsheets, visit www.MobilizeEverything.com.

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  • Eatfood1

    I for one welcome our new AT&T overlords.

  • Eatfood1

    I for one welcome our new AT&T overlords.

    • Tabasco1tx

      Omg that is too dam funny.

  • Anonymous

    Gird your loins, guard your SIMs! I wonder what besides deplorable service and treatment we will have to endure because of being thrown into the lion’s den? Will this site have to change its name to ATTmoNews??? I guess the spoils went to the one with the most deutsche marks.
    Remedy: When they make a change that we didn’t sign on for, that will breach our contract = we can avoid the ETF. The contracts that we agreed to have to be honored.

  • lexophile

    att might be crappy, but what if, and its a big if, they become better with the purchase of t-mobile? im just trying to play devil’s advocate because the consensus seems to be that our t-mobile service will go to crap with att, but what if the opposite happens and att’s service improves?

    • Ron Dickerson

      Service will probably go to crap, but that’s part of how ATT became so large. T-Mobile has focused imo, on a lot of ideals and practices that inhibit their ability to gain customers and make money, which unfortunately includes an emphasis on customer service.

  • telmo

    noooooooooooooooooooooooooooooooooooooooooooooooooooooo!!!!!

  • remister

    Is the website going to change names now?

  • RiverRat

    Just remember your history folks. Boost Mobile and Virgin Mobile came to the US in the early part of 2000, and 2001. They operated as MVNO’s, and that were susbsquently absorbed by Sprint in 2006. And some of the plans both had in the early 2000′s are still around today. Therefore, it may be reasonable that AT&T may keep the Tmo brand name around. The form in which it is in today may not stick around (post paid and prepaid), but it is not a foregone conclusion that Tmo is toast. Perhaps Tmo may end up being a prepaid service, with access to some of AT&T’s assets.

    Just remember, no one outside of the inner power circles of ATT really know what is going to happen to tmo.

    • http://spritemoney.myopenid.com/ Andrew

      they said the end company will be AT&T

  • Eric
    • http://www.volkswagen.de Quailallstar

      I just filled a formal complaint with the FCC about this crap.

      Do the same! http://esupport.fcc.gov/complaints.htm

      • Ron Dickerson

        …really, guy?

      • Gonzalez_manolo

        What is going to happen to the workers of TMobile, They need to be protected as there are lot of billions involved in this transaction. The economic panorama can not acccept massive lay offs.

      • Anonymous

        Please do so immediately, since there aren’t really important matters for Congress to investigate, like a huge deficit, a weak economy and a war being fought on two fronts.

        Yes, clog up their inboxes with tales of hurt feelings over AT&T purchasing T-mobile. Yeah, that’s the ticket.

  • Anonymous

    Will all the AT&T towers start broadcasting the T-Mo bandwidths and vise versa once the deal closes? If so, then my phone should get stronger/larger cell and 3G service?

    • Ron Dickerson

      LTE

    • Ron Dickerson

      LTE

    • Ron Dickerson

      LTE

    • Anonymous

      Yes, for the short-term. No carrier can afford to build towers in large quantity, especially in dense urban areas where additional capacity is needed. I witnessed first hand the efforts of one carrier to get a couple of towers built in suburban Southern California and the local town put so many roadblocks in place and jacked up the costs that the carrier backed out.

      Current towers for AT&T and T-mobile, each blasting out the 3G frequency for the other company as well as its own, means better coverage and greater bandwidth for both companies (relieving stress on certain celltowers along congested routes, for example, which improves 3G throughput). And that’s just the low-hanging fruit, since the endgame is about LTE, at which point both companies can be on the same frequencies in transitioning over the aggregated carriers to true 4G.

      The bottom line is that T-mobile was going to be sold to some entity, and being purchased by Sprint would have been infinitely worse. I think a lot of folks here, once they get over their shock and hurt feeling (and in some cases, sober up) will realize this isn’t as bad as they’re making it out to be. By the time this gets approved by the FTC and FCC, there will be concessions by AT&T which will protect the current customers of T-mobile (like grandfathering current plans). The improvement in wireless coverage alone will be a great relief to many Tmo customers.

      • Kia

        I disagree. I hate AT&T as a matter of principle, AND because of their hideous customer service. Their executives just wreak of ‘wrong’.

        People keep glossing over one thing, though (for the most part) — WHO WILL BE ANOTHER OPTION FOR GSM, AFTER THIS ACQUISITION? Who??

    • Anonymous

      Yes, for the short-term. No carrier can afford to build towers in large quantity, especially in dense urban areas where additional capacity is needed. I witnessed first hand the efforts of one carrier to get a couple of towers built in suburban Southern California and the local town put so many roadblocks in place and jacked up the costs that the carrier backed out.

      Current towers for AT&T and T-mobile, each blasting out the 3G frequency for the other company as well as its own, means better coverage and greater bandwidth for both companies (relieving stress on certain celltowers along congested routes, for example, which improves 3G throughput). And that’s just the low-hanging fruit, since the endgame is about LTE, at which point both companies can be on the same frequencies in transitioning over the aggregated carriers to true 4G.

      The bottom line is that T-mobile was going to be sold to some entity, and being purchased by Sprint would have been infinitely worse. I think a lot of folks here, once they get over their shock and hurt feeling (and in some cases, sober up) will realize this isn’t as bad as they’re making it out to be. By the time this gets approved by the FTC and FCC, there will be concessions by AT&T which will protect the current customers of T-mobile (like grandfathering current plans). The improvement in wireless coverage alone will be a great relief to many Tmo customers.

  • disgusted

    yeah it’s good to know I only have 12 months or so of employment left…just fucking fantastic!!

    • alrock

      Yep. I am completely stressed out.

    • Anonymous

      Yep, I’ve been a very loyal T-Mobile customer for over 9 years. I’ve been a T-Mobile retail sales associate for about a year. I can’t justify selling new contracts to customers now, knowing that they’re gonna become AT&T customers, half-way through their contracts… My app is going in at Verizon tomorrow to work in their call center.

    • JustAPhoneUser

      Man, deepest regrets… They should keep you guys and lay off the current ATT staff. Seriously…

    • http://twitter.com/lookitsevan Evan Washington

      Im with you buddy but if you are a top performer I dont think you need to worry.

  • Josue

    Yes!

  • Anonymous

    Google help us poor customers, please become a carrier.

    • Anonymous

      Same question as was posed to the guy above: How would such a move benefit Google? It already has AT&T selling tens of thousands of Android phones, all of which have the Google mobile search installed (unlike the Verizon Android phones with Bing inside). Google’s skin in the Android game is getting as many installed bases in handsets as possible, and reaping ad dollars in the process. Google doesn’t care if AT&T buys Tmo or not, since the bottom line for Google is how many more phones are being sold.

      Furthermore, why in the hell would Google want to be in the cellular business? How would THAT advance its business goals? (Hint: It doesn’t).

      There is no way Google goes toe-to-toe with AT&T to attempt to outbid for T-mobile and piss off AT&T in the process. It simply won’t happen. Beyond that, anyone who remembers the comically bad effort by Google to sell and support the Nexus One knows that the worst customer service from AT&T is better than the horrible effort shown by Google then.

  • Wireless_oneder

    Oh well, I guess TMOnews can be renamed AT&Tnews. Is there going to be a fire sale for TMOnews swag?

  • Wireless_oneder

    Oh well, I guess TMOnews can be renamed AT&Tnews. Is there going to be a fire sale for TMOnews swag?

  • http://darnell-chat.myopenid.com/ Darnell

    All things considered, this was the best outcome.

    We knew T-Mobile USA was hurting and looking hard for a buyer. We know when Sprint purchased Nextel that was a total mess, so a Sprint purchase would have been ugly. Especially with the mixed networks.

    AT&T is another band of GSM carrier, so it’s a good fit. In time AT&T being the “largest” carrier will be sure to charge us more. But if Sprint had purchased T-Mobile I probably would have switched to AT&T anyway.

    So we just have to hope some of T-Mobile’s low prices stick for some time for our benefit. Also, since the iPhone has more than one carrier, perhaps AT&T will allow T-Mobiles pro-Android efforts to continue under their brand.

    • ron dickerson

      good news is sprint and verizon are about to become much better providers since they have 12 months to prepare.

  • http://darnell-chat.myopenid.com/ Darnell

    All things considered, this was the best outcome.

    We knew T-Mobile USA was hurting and looking hard for a buyer. We know when Sprint purchased Nextel that was a total mess, so a Sprint purchase would have been ugly. Especially with the mixed networks.

    AT&T is another band of GSM carrier, so it’s a good fit. In time AT&T being the “largest” carrier will be sure to charge us more. But if Sprint had purchased T-Mobile I probably would have switched to AT&T anyway.

    So we just have to hope some of T-Mobile’s low prices stick for some time for our benefit. Also, since the iPhone has more than one carrier, perhaps AT&T will allow T-Mobiles pro-Android efforts to continue under their brand.

  • http://darnell-chat.myopenid.com/ Darnell

    All things considered, this was the best outcome.

    We knew T-Mobile USA was hurting and looking hard for a buyer. We know when Sprint purchased Nextel that was a total mess, so a Sprint purchase would have been ugly. Especially with the mixed networks.

    AT&T is another band of GSM carrier, so it’s a good fit. In time AT&T being the “largest” carrier will be sure to charge us more. But if Sprint had purchased T-Mobile I probably would have switched to AT&T anyway.

    So we just have to hope some of T-Mobile’s low prices stick for some time for our benefit. Also, since the iPhone has more than one carrier, perhaps AT&T will allow T-Mobiles pro-Android efforts to continue under their brand.

  • http://twitter.com/3Trais3 G William Norris III

    Glad I only have 10 months left on my contract… TMobile was the best, except for selling out to AT&T… just weeks ago the CEO in Germany said that they were not interested in sell TMobile, WTF!!! AT&T is just looking to expand and take the towers and data bands for their use and TMobile will be a shell of itself if they do keep it around without doing it in totally and having TMobile customers join AT&T… having had LA Cellular years ago and having AT&T take them over is what caused me to switch to TMobile! I’m counting down till I’m out of here, sorry TMobile!

    • Dustin Meinhoff

      The best thing to do would be to wait until the merger is complete. Verizon will not be happy to be the second place carrier and you can bet they’ll jam out their lte network as fast as possible and have a very competitive line of phones ready to absorb all the former t-mobile customers come 12 months from now.

  • http://www.twitter.com/Wicked_1 Wicked1

    I am not happy with this. T Mobile has a better network, better customer service, better plans, better everything, and is Android HQ. This is a bad deal for the customers, and manufacturers. For the few T Mobile users who want an iPhone, they see this as good, but read that fine print *shakes head*. This probably means I will be moving to Verizon when the contract I just renewed is up, or prepaid

  • Phil

    Just got off the phone with T-mobile CS. They do not plan to offer contract breaks but they WILL offer free phones to replace the AWS/HSPA+ phones once they kill off T-Mobile’s 3G spectrum in lou of LTE, this can be expected to happen in 12-17 months. The FCC wanted this to happen considering they want LTE to be everywhere and this makes it happen faster.

    • Anonymous

      That’s the first time I have ever seen someone type “in lou of” instead of “in lieu of.” LOL.

      By the way, in case you ever need to use the word, it’s voila, not “welllah.” ;)

      That aside, are you saying that a 611 customer service rep was talking in this kind of detail? That sounds far fetched that a CSR would know the information you posted, much less talk in this manner to a customer.

      • Mickey090

        As a csr. … we have just as much info as u guys. Just a bunch of questions and no answers!

  • http://twitter.com/mcasao ManwellC

    woohoo iphones for everyone!

  • http://www.twitter.com/Wicked_1 Wicked1

    Everybody who is contracted now, we will have those same prices until our contracts are up. I just renewed in January. This deal will take 12 months, at the least to complete, so nothing should change in that time. T Mobile should have just coughed up the money, or whatever to get the iphone. Would have gained a lot of new customers. I don’t like this. I was with ATT before they changed to Cingular- I have been with TMO for goin on 7 years

    • Ron Dickerson

      it’s not a simple matter of “coughing up more money”. For all the money they spent on some damn good Android phones they could’ve gotten the iphone no problem. Apple didn’t want to make it happen.

  • Anonymous

    I am a current AT&T customer after being a t-mobile customer for 5 years and haven’t had any problems service wise with AT&T. They aren’t as bad (at least in Atlanta) as they are made out to be.

    • JROJA

      Same here (Miami) and I completely agree. I hated T-Mobile! Dropped calls every day and spotty reception. AT&T has been waaayyyyyy better than T-Mobile, to me at least.

      • Anonymous

        I had no problems with T-Mobile as a whole. I just got kinda fed up with their phone selection. The service was more or less the same as what I have with AT&T now. I got the iPhone 4, and quickly missed Android and got myself an Inspire 4G. The G2 may rock, but I wasn’t leaving my Nexus One for it.

        As far as customer service goes, T-Mobile definitely has the best in the industry. However, I have had to call AT&T only ONCE since I got them last september, and that was just to activate the phone and make sure my number was ported correctly. That’s the only time I’ve had to contact them, which is a good thing. I just don’t call them enough to have an established opinion of them yet.

  • freddo

    Will be leaving before the AT&T switch. This is one of those conditions that allows early exit from contracts w/o ETF, right? Eh, doesn’t matter, I’ll pay the ETF if necessary. AT&T was one of the telcos who participated in the illegal warrantless wiretapping program–no thank you!

    Unfortunately, it means I won’t have anywhere to take my new G2. I don’t know of any GSM regional carriers. Not terribly interested in CDMA, either. Argh. This just ruined my week.

  • http://www.facebook.com/Rioface John Ong

    At&t is possibly the lesser of two evils considering that Sprint wanted to buy T-mobile. I wonder if there is an issue with the FTC if At&t absorbs our beloved carrier due to monopolistic business in the GSM market!

  • http://www.facebook.com/Rioface John Ong

    At&t is possibly the lesser of two evils considering that Sprint wanted to buy T-mobile. I wonder if there is an issue with the FTC if At&t absorbs our beloved carrier due to monopolistic business in the GSM market!

  • http://www.facebook.com/Rioface John Ong

    At&t is possibly the lesser of two evils considering that Sprint wanted to buy T-mobile. I wonder if there is an issue with the FTC if At&t absorbs our beloved carrier due to monopolistic business in the GSM market!

  • http://www.facebook.com/Rioface John Ong

    At&t is possibly the lesser of two evils considering that Sprint wanted to buy T-mobile. I wonder if there is an issue with the FTC if At&t absorbs our beloved carrier due to monopolistic business in the GSM market!

  • Omeer

    Here comes the hordes of restrictions on bogus overpriced plans, horrible customer service, horrible service and a hidden clause to charge a pretty penny behind every text, call and bits of data. Thanks DT, guess expecting anything less from a company based in a country that gave us the likes of Hitler was stupid.

    • Ron Dickerson

      …seriously?

  • Alvaro

    Google: Didn’t you have some spare change to buy TMobile instead of the hated AT&T???? Why You do this to us, Google? Why????

    • Anonymous

      Me suspects Google did not want to be in the wireless business, not even as a major investor. With the carrier war and tanked economy, it’s a crappy investment.

      Makes sense, Google needs to stick to what it knows, making desserts and selling SPAM disguised as ads.

    • Jack

      Google can sell phone, put ads in there, but provide the service for free.
      Hahaha.

  • Lee

    I have something that might cheer you guys up. Remember our Nexus Ones, maybe Google should go intothe carrier business and provide its own service.

    • Nico

      Yes please.

    • Anonymous

      Google, the company which didn’t know how to respond to the questions and problems of buyers when the N1 first went on sale? THAT Google?

      I think the company learned its lesson–it isn’t meant to be a retailer and do all the things involved in selling hardware. It also isn’t going to go into competition with the very carriers which support the Android phones, since its business is built upon getting all those phones with Google search built-in sold in the marketplace.

      It doesn’t benefit the company at all to begin selling phones; in fact, it would hurt Google’s bottom line and ruin relationships with the carriers.

      • Lee

        The reason why it wasn’t benificial was bad advertising, bad customer support and US customers that were conditioned to the carrier subsidy pricing. All are areas which Google can improve. Google also stated no more Nexus phones. . .Now we have the Nexus S and soon to be Nexus S4G. I would take Google any day than the terrorists at AT&T.

        • Anonymous

          In your adolescent fantasy, you didn’t provide a single reason why Google would spend the sort of money required to outbid AT&T, especially since the latter has become one of the largest retailers of Android phones in the past 12 months. Why would it piss off a company which has become an important vendor of Android phones, which in turn spread Google mobile search all over the country? Unlike Verizon, AT&T hasn’t substituted Bing as the default search engine.

          Your OP was all about why you think Google spending tens of billions of dollars would be good for YOU, but no word about why it would be a good move for Google. Certainly, there is no possible upside for Google, and plenty of downside.

    • Anonymous

      Google, the company which didn’t know how to respond to the questions and problems of buyers when the N1 first went on sale? THAT Google?

      I think the company learned its lesson–it isn’t meant to be a retailer and do all the things involved in selling hardware. It also isn’t going to go into competition with the very carriers which support the Android phones, since its business is built upon getting all those phones with Google search built-in sold in the marketplace.

      It doesn’t benefit the company at all to begin selling phones; in fact, it would hurt Google’s bottom line and ruin relationships with the carriers.

    • Anonymous

      Google, the company which didn’t know how to respond to the questions and problems of buyers when the N1 first went on sale? THAT Google?

      I think the company learned its lesson–it isn’t meant to be a retailer and do all the things involved in selling hardware. It also isn’t going to go into competition with the very carriers which support the Android phones, since its business is built upon getting all those phones with Google search built-in sold in the marketplace.

      It doesn’t benefit the company at all to begin selling phones; in fact, it would hurt Google’s bottom line and ruin relationships with the carriers.

    • Anonymous

      Google, the company which didn’t know how to respond to the questions and problems of buyers when the N1 first went on sale? THAT Google?

      I think the company learned its lesson–it isn’t meant to be a retailer and do all the things involved in selling hardware. It also isn’t going to go into competition with the very carriers which support the Android phones, since its business is built upon getting all those phones with Google search built-in sold in the marketplace.

      It doesn’t benefit the company at all to begin selling phones; in fact, it would hurt Google’s bottom line and ruin relationships with the carriers.

  • AdrianG2

    For the people with questions about their current TMo service, check here on post #2

    http://forums.t-mobile.com/t5/T-Mobile-General/AT-amp-T-to-Acquire-T-Mobile-USA-From-Deutsche-Telekom/td-p/785009

  • http://pulse.yahoo.com/_6BZWRJOKVCUIZWHMEWABAUBLHQ gfam

    What’s sad is that Deutsche Telekom clearly went for the money, selling out all of their T-Mobile USA customers to a wireless carrier that has proven to have ATROCIOUS CUSTOMER SERVICE, HIGHER PRICED PLANS and a HORRIBLE NETWORK WITH NUMEROUS PROBLEMS!! Really, T-Mobile, how in the world does this benefit your customers? WE ARE NOT STUPID IDIOTS T-MOBILE!!!

    • Jazzybee445

      Man… best comment ever! T-mobile how can you do this to your customers.

    • Ron Dickerson

      Gee let me think… I’m running a business to make money… my number one priority is myself as an entity and my assets… I’m losing money and customers with no end in sight… I’ve invested billions into my business over 12 or so years and have consistently been in last place… I already have a thriving cell provider business in the EU… I manufacture a lot of wireless equipment which I use for my own provider companies but could still sell to someone else if I lost the US busines…. hmmm but what about my customers? Well… I guess they’ll still have service, they’ll get a larger, better network with the newest technology and fast internet, plus the industry will be more competitive so they’ll probably get a good deal at verizon or sprint when the sale of my business is complete… nah screw it!… I’ll keep the business and go under, guaranteeing the loss of about 50k jobs and loss in billions that i’ll never be able to make back. Yeah… THAT’s the best choice here.

  • http://www.facebook.com/people/Jose-Medina/616625295 Jose Medina

    this is worse than a breakup I can take a break up any time but not this. :( suicide mode right now.

  • Anonymous

    Those wondering about whether or not federal regulators will approve this deal, in this tanked economy, I suspect the pressure will eventually fall on Washington to allow the acquisition. But expect Verizon, Sprint and small carrier lobbyists to put up some roadblocks to this deal being consummated.

    Sidenote: While Sprint is mad, it obviously knew about AT&T bidding for T-Mobile, but I think it will still have sour grapes over AT&T pummeling Sprint on the bidding. (Sprint should not feel too bad. How can one compete against a company willing to pay $19 to $24 billion more than what T-Mobile was worth. Then again, I don’t think Sprint saw AT&T’s $39 billion bid coming.)

    And Verizon? Well I don’t think it will sit around like a potted plant letting AT&T in 2012 become the U.S. largest wireless carrier.

    So I expect to see Verizon and Sprint “whining” to Congress and regulators about how bad this deal is for America (insert violins playing patriotic tunes).

    Both carriers have some arguments, IMHO. They may not carry the day, but both carriers can make some noise.

    1. Folding in T-Mobile’s customers will give AT&T 125 to 130 million subscribers. That makes AT&T the biggest U.S. carrier. In Washington’s eyes that may in fact be too big a wireless company.

    The acquisition may result in less competition, price discrimination, and unlawful industry dominance. Might the Justice Dept. get involved? I dunno.

    2. If the sale is approved that would mean 3 out of 4 U.S. wireless customers are with either Verizon or AT&T. That does not bode well for AT&T and T-Mobile retorting to regulators that the sale advances consumer choice (especially since the acquisition, IMHO, would wipe out T-Mobile’s raison d’être: value pricing).

    SIdenote: It does not help the Parties that AT&T imposed tiered data plans, the assumption that AT&T will quickly eliminate T-Mobile’s unlimited or other reasonably priced data plans.

    3. The FCC has to approve sale of T-Mobile’s wireless spectrum to AT&T. The FCC may NOT approve the deal (AT&T’s acquisition of T-Mobile’s licenses) since the Agency has previously gone on record as saying the wireless industry in its current state is NOT competitive.

    The FCC’s position was with five carriers, noting that AT&T and Verizon held 60% of the entire subscriber market. Will reduction in carriers cause the FCC to withhold approval of this deal? I dunno, but IMHO Verizon and Sprint have a lot of money for lawyers to at least delay the deal through mid-2012.

    Note: AT&T’s answer to this might be to keep T-Mobile a distinct and separate business entity, with gradual increase of prices and elimination of unlimited data plans, say over two to three years.

    • http://pulse.yahoo.com/_6BZWRJOKVCUIZWHMEWABAUBLHQ gfam

      AT&T’s lead in wireless customers will evaporate just like it did after Cingular bought “AT&T Wireless,” then changed it’s name back to AT&T after they bought out the AT&T land line telephone company. They did it because they thought the brand name of “AT&T” was better. Verizon will catch up in customers because millions upon millions UPON MILLIONS of T-Mobile customers will RUN AWAY FAST from AT&T, watch. That and if AT&T is ultimately allowed to buy T-Mobile, Verizon will be allowed to buy Sprint, watch again…

      • Markhb

        Cingular was initially a JV between Southwestern Bell and, IIRC, BellSouth; they bought AT&T WS which had already been split off of the original AT&T and adopted the Cingular brand name (while trashing everything good the original AT&T WS had going on). SWB eventually bought BellSouth and finally what was left of AT&T itself (basically wired long distance and things like that), and changed their name. So really, it’s Southwestern Bell which calls itself AT&T.

        • ghostnik

          I guess its just the monopoly telecom companies from the past in 1907 coming back together after the government regulators had broken up the monopolies that Bell Atlantic, AT&T and telecom giants from the pass had formed, but now they are coming back together and prices are going to be ridiculous as it will be down to 3 companies in telecom industry in usa, with one of the 3 (sprint) struggling, so maybe it might end up being verizon buying sprint, then two telecom giants left to charge high prices to customers who will only have a choice between 2 phone companies. The crazy thing is that the FCC will approve the deals in the name of giving people/consumers better service but at the price of digging deep into consumers wallets, who in this economy are trying to save.

    • ghostnik

      The FCC will approve this without thought, its the same FCC who is trying to get rid of net neutrality on the web, http://www.freepress.net/policy/internet/net_neutrality

      And it won’t be b/c of a tanked economy why they approve this, it will be because of the lobbyist power AT&T has as a corporate giant to influence the people on the FCC.

      I can’t believe deutsche telekom would sell out to AT&T but i guess that just shows the power of money, as deutsche telekom sold out its loyal customers to AT&T for 39 billion, I figured T-Mobile USA and customers was more valued to deutsch telekom than that.

  • IMAD

    YOU RUINED MY LIFE T-MOBILE

  • Anonymous

    LOL this really is not as bad as people are making it. I am kind of eager for it

    • Byounngg

      I’m just glad it’s at&t cuz if it went to sprint that would totally have sucked

  • Anonymous

    Point of order in here.This is an acquisition, NOT a merger.

    DT is selling TMOUS to AT&T.

    AT&T, for $39 billion, is acquiring ALL of TMOUS. If AT&T so chooses, it can fire all of TMOUS employees and sell off all of T-Mobile’s U.S. assets. (That’s not going to happen, I only mention it to illustrate the difference between an acquisition and a merger.)

    If this was a merger, DT would have a say in what happens to TMOUS after the deal, for example, who will stay, who will go, what handsets to order from manufacturers, marketing strategy, etc. If the sale is approved TMOUS (DT) does not have a say on any of these things (except its one member who will sit on AT&T’s Board).

    This is important to understand, especially if you think that DT or TMOUS might “be on your side,” so to speak, if the deal is approved by Washington and the sale goes through. Simply put, if approved, you should assume TMOUS will figuratively vanish off the U.S. map.

    • Mykeal317

      Wow. I can’t believe this merger will cause job loss. That is sad and I don’t like ATT anyway. Verizon is expensive and I wonder if Sprint can stand with the competition.

  • Imdoinme07

    how will this effect the customers will our bills remain the same,more or less thats all I wanna know

  • Justme

    Question… Can we file a lawsuit against tmobile, if they don’t allow us to cancel our contract at no cost.. They didn’t honor their two year agreement to supply us our service… Hmmm, what do you guys think?

    • Kgjh

      File a lawsuit about what??? Did anyone say you would lose your service? Nope! Just, one greedy company buying another. This happens everyday and probably most T-mobile employees will be ex-T-mobile employees, unfortunately.

      • Mykeal317

        I agree.

  • http://twitter.com/xtrachris christopher myers

    This is better for us. GSM to GSM. I am glad it is AT&T that is acquiring TMO.

    • Mykeal317

      ATT is CDMA. T-Mobile is GSM…

  • http://twitter.com/LTEstyles LTEstyles

    I’m just sad, tmobile never jerked me. I guess what i’m really worried about are the prices and data caps. Us GSM lovers are at the mercy of AT&T..

  • Anonymous

    For those of you who don’t want this deal to happen, this just in 20 minutes ago:

    “Before anyone gets too giddy about the $39 billion AT&T and T-Mobile USA deal there is one big hurdle standing in the way: Washington. Bloomberg News Spencer E. Ante and Amy Schatz lay out some of the barriers to the deal, which may be one of the toughest sells of any corporate mergers ever.

    Both the U.S. Department of Justice and the Federal Communications Commission will have to let the merger through.

    The companies said the deal could take a year to bring to the finish line, and that means months of AT&T executives and lawyers parading in and out of polished Washington hallways to sell lawmakers and government agencies on the merits of the deal. Likely the biggest concern: If AT&T buys T-Mobile, the combined company plus Verizon will control about three-quarters of all wireless subscriptions in the U.S.

    “It’s a pretty highly concentrated market,” Herbert Hovenkamp, a professor of law at the University of Iowa, told our colleagues. “The guidelines would say this is a highly questionable merger unless there is a significant provable efficiency. This will get fairly close scrutiny.”

    Sprint, according to our Wall Street Journal colleagues, also is concerned about how much power AT&T and T-Mobile would have over wireless devices and pricing. Expect Sprint to flag those worries with regulators.

    Already, several consumer watchdog groups have signaled their concerns about a merger of AT&T and T-Mobile.

    “AT&T is already a giant in the wireless marketplace, where customers routinely complain about hidden charges and other anti-consumer practices,” said Parul P. Desai, policy counsel for Consumers Union, the non-profit that publishes Consumer Reports magazine. “From a consumer’s perspective, it’s difficult to come up with any justification or benefits from letting AT&T swallow up one of its few major competitors.”

    AT&T is no dummy, of course. They know this deal will be a slug fest, and they’ve worked out exactly the talking points to attack Washington’s regulatory armor. AT&T says there will remain plenty of competition left in the wireless business to keep companies honest and well meaning. And AT&T has touted the breakthroughs the combined company can make in fast wireless Internet service — a priority of the Obama White House.

    “We are very respectful of the DOJ and the FCC and those processes. We have done this many times before,” AT&T CEO Randall Stephenson said in a video on the merger Web site. “If you look across the United States, the majority of all Americans have an option to choose five different service providers for their wireless service. So you combine all of that and we think after a very thorough review, this transaction will be approved.”

  • Anonymous

    For those interested, here’s AT&T’s spin on things, home movies and everything. LOL:

    http://www.mobilizeeverything.com/video1.php

    http://www.mobilizeeverything.com/home.php

  • 4G_or_not_4G

    No need to worry, all this means is higher costs and lower quality… I think I am going to be SICK!

  • Anonymous

    Oh, AT&T’s website on the acquisition says the “transaction is expected to close in approximately 12 months.”

    So that makes it around March 2012. But if this deal happens, with Verizon and Sprint gumming up the works I expect it won’t happen until June 2012 at the earliest.

    Keep in mind, too, that Verizon and/or Sprint could join forces behind the scenes and file suit, including for a preliminary injunction. If they decide to do that, they won’t file until January or February 2012, this to delay the deal going through even longer, maybe 2013.

    Like I said before, with the FCC, DOJ, Verizon, Sprint, and a unified band of small carriers, this deal may not happen until June 2012, but maybe not at all.

    Sidenote: If DT (mainly Obermann) sees this deal stalled expect to see T-Mobile change its plans closer to being in line with AT&T. Just a thought.

  • Alvin B.

    If I wasn’t on a contract, I would be out the f****ing door by tomorrow morning. There’s no way on Earth I want to be an AT&T customer again, and I think a LOT of T-Mobile customers are with me on this one!

    • ghostnik

      I want to know what options do T-mobile customers like my self have, is there any other phone company out there that will offer unlimited data for around 25 to 35 bucks, with great coverage in metro areas. I want to know who are my options if when this merger is finalized and if my plan is changed by AT&T who i can go to.

      • Alvin B.

        Well really there aren’t going to be any options for getting out of contract unless substantive changes are made to your service. However, expect to see the kinds of deals & plans T-Mobile offers like that become grandfathered very quickly once the buyout is approved.

      • mm

        dude; you don’t have unlimited data now. as soon as you hit 5g’s in the month your streaming galaxy s becomes a dial up brick.

        • bingbang

          ok, we get it. no ‘real’ unlimited data plan.

      • TM89

        your current rate plan will be grandfathered and you will be able to keep your rate plan with tmo… and the merger is still in the works… everything still has to be approved by the government and the fcc.

        • Past AT&T Sales Rep

          the real question which most people don’t cover, what happens when you need to upgrade. I used to work for at&t and quite a few other major brands back in the day. And while i was not able to find any comments from the old cingular customers i will say with experience. While the grandfathered plans may be left alone there is no doubt in my mind that once you try to upgrade you will no longer be able to keep your plan unless you pay full pop for the phones and avoid adjusting your contract in any way. This is the typical MO for at&t once they acquire another service provider and, while its quite imposable to tell the future its not that hard to see that they have done this many times in the past and i find it hard to think they will change their pattern now. I can continue to complain about AT&T for many hours so ill end this here but… please lets see more people asking about what will happen with tmobile customers when they try to upgrade. Will they be treated like the old cingular customers were or does at&t plan to release something in public / on paper that will state other wise. I doubt it would be anything but the latter.

        • Kickyindahead

          before i switched to verizon i asked around .. went from alltel to at&t reps for several days .. took me weeks and actually months from the first word that alltel had been taken over by at&t. In conclusion .. yes my plan with alltel would have been honored after the merge but if i wanted to upgrade… which i usually did around the time my contract was up .. I would have had to go with an at&t plan .. so your assumption would be correct .. im sure that they wouldnt make an exception with tmobile if they did the same thing with alltel and all the other companies that they have monopolized over.

      • jdp435

        check sprint.. the everything unlimited data plan is $69.00 a month.. its great if u live in the coverage area..

      • Kickyindahead

        go verizon!

    • mlw

      att cust service has got alot stronger! worth it to stay with them. they have taken the right steps for a great network!!

      • Anonymous

        Let me guess…. you work for AT&T?

      • Sean

        Agreed. AT&T is not the same carrier it was a year ago. It’s a big reason why I have phones on AT&T and T-Mobile. At the end of the day, I think it’s no big deal. Both are $110 / mo. for two smartphones, unless you’ve got an old plan like Even More Plus.

  • Patrick Schaefer

    this just flipping sucks, can’t wait for poor flipping service, charges for every flipping thing, and crappy flipping service. flippipty flipping flip

    • Mk Raap

      True. The DT idiots in Frankfurt have sold T-Mobile USA to the morons iin the blue suits at AT&T. As someone that had been with T-Mobile from the early days, I hate the thought of being associated with the corporate incompetence and neanderthal thinking of AT&T.

  • Applepiter

    Noooooooooooooo sh*t, f*ck, crap …… I will drop T-Mobile faster than An at&t call

  • Magenta Magic

    Well, just when I finished building my Magenta Shrine… frack.