(Updated With Deutsche Telekom Statement) AT&T Might Not Be Required To Pay T-Mobile Break-Up Fee After All?

Update: Deutsche Telekom has stated it would consider “carving out some assets” from T-Mobile USA in order to continue the regulatory approval process for a deal with AT&T. Speaking to BusinessWeek Deutsche Telekom spokesman Philipp Kornstaedt says that DT is examining different scenarios and how they would play out in real life. With the report of T-Mobile needing to maintain a certain level of value in order to earn DT a break-up fee should the deal fail, Deutsche Telekom is pressed to ensure that any “carved out assets” don’t drop the value of the company below a specific valuation. 

While it has been widely discussed that if the AT&T/T-Mobile deal were to fall through due to regulatory concerns, Deutsche Telekom would still come out ahead based on the multi-billion dollar break-up fee AT&T would be forced to pay. Unfortunately, new details have come to light courtesy of an early morning Reuters report indicating that AT&T might not have to pay the fee after all if certain conditions are not met.

“There are a number of options under which the (break fee) contract will not come into effect,” the person, who is familiar with the contract, told Reuters on Monday.

One condition under which AT&T could bypass the payment is if the deal hasn’t been given the green light by a certain date. The Reuters insider says if the unknown timeframe passes, the contract is null and void and that AT&T isn’t liable for the break-up free. In addition, T-Mobile is not allowed to fall under a certain financial value which could happen if regulators demand AT&T to sell of portions of T-Mobile in order to gain approval for the deal.

With the Department of Justice seeking an injunction to block the deal and with AT&T working on a two-prong attack to gain regulatory approval the fee and the deal itself all seem suddenly very much up in the air.

Reuters

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  • AnotherVoiceOfreason

    DT is in a financial mess of their own in Europe and are desperately seeking this $39 billion deal to pay down their own debt.  They are done with T-Mobile USA guys.  Done.

    We have to get past the point of “wishing to keep T-Mobile out of the reach of a suitor,” as it is today. They are done with us so it’s time we move on to. 

    Although I don’t want to necessarily become an AT&T customer we would be worse off alone with no hope of any substantial LTE network for the foreseeable future.  And without DT as our parent company we will miss out on all upcoming hot handset launches here in the US with our not as common AWS spectrum. T-Mo USA alone will not have enough financial pull or size to demand the iP5 or the alike.  

    The longer we stay in limbo the worse off our wireless carrier and network will be.  No more investments and we’ll see the likes of AT&T, Verizon and even Sprint pass us on by with their LTE deployments as this will be the new defacto wireless broadband technology of choice going forward here in the US. 

    If the only reason you are with T-Mobile is because you have some old $5.99 data plan then you are here for the wrong reasons.  You belong with Metro PCS or Boost since it’s obvious your only reason you are a wireless customer is because of price not value.  I’d rather pay a little more if I can get LTE and win coverage in much more places than I do today. 

  • AnotherVoiceOfreason

    DT is in a financial mess of their own in Europe and are desperately seeking this $39 billion deal to pay down their own debt.  They are done with T-Mobile USA guys.  Done.

    We have to get past the point of “wishing to keep T-Mobile out of the reach of a suitor,” as it is today. They are done with us so it’s time we move on to. 

    Although I don’t want to necessarily become an AT&T customer we would be worse off alone with no hope of any substantial LTE network for the foreseeable future.  And without DT as our parent company we will miss out on all upcoming hot handset launches here in the US with our not as common AWS spectrum. T-Mo USA alone will not have enough financial pull or size to demand the iP5 or the alike.  

    The longer we stay in limbo the worse off our wireless carrier and network will be.  No more investments and we’ll see the likes of AT&T, Verizon and even Sprint pass us on by with their LTE deployments as this will be the new defacto wireless broadband technology of choice going forward here in the US. 

    If the only reason you are with T-Mobile is because you have some old $5.99 data plan then you are here for the wrong reasons.  You belong with Metro PCS or Boost since it’s obvious your only reason you are a wireless customer is because of price not value.  I’d rather pay a little more if I can get LTE and win coverage in much more places than I do today. 

  • Adam3

    T mobile is a foreign corporation. AT&T and US government are working together to destroy it.

  • Adam3

    T mobile is a foreign corporation. AT&T and US government are working together to destroy it.

  • Hrose1965

    turn out the lights the party is over. hell it was over for me 3 weeks ago went to att and they even droped the activation fees something i was not expecting 198.00 dollars thank you att was with tmo 11 years  ported 4 lines over called them told them comming from tmobile an dthey waved all the fees love it

  • Hrose1965

    turn out the lights the party is over. hell it was over for me 3 weeks ago went to att and they even droped the activation fees something i was not expecting 198.00 dollars thank you att was with tmo 11 years  ported 4 lines over called them told them comming from tmobile an dthey waved all the fees love it

    • Realcool2000

      Sure they did, att spokesguy.

      • Hrose1965

        ill show you the text message fall with your tmobile

        • Anonymous

          I think anybody really wants to see your text messages. 

        • Anonymous

          I think anybody really wants to see your text messages. 

  • Hrose1965

    turn out the lights the party is over. hell it was over for me 3 weeks ago went to att and they even droped the activation fees something i was not expecting 198.00 dollars thank you att was with tmo 11 years  ported 4 lines over called them told them comming from tmobile an dthey waved all the fees love it

  • Baltimore

    Everyone is talking about AT&T and T-mobile.  What about Qualcomm?  The FCC is combing both reviews together (T-mobile and Qualcomm).  They are looking at both the national and regional markets for the specturm AT&T wants to acquire.  It’s not just T-mobile the FCC will be reviewing.  Why does AT&T need both Qualcomm and T-mobile?  AT&T is buying up all GSM carriers?  It seems like there is something missing or being over looked.  There is more to the buyout than was is being presented.  As consumers we need more than 1 GSM carrier.

  • Baltimore

    Everyone is talking about AT&T and T-mobile.  What about Qualcomm?  The FCC is combing both reviews together (T-mobile and Qualcomm).  They are looking at both the national and regional markets for the specturm AT&T wants to acquire.  It’s not just T-mobile the FCC will be reviewing.  Why does AT&T need both Qualcomm and T-mobile?  AT&T is buying up all GSM carriers?  It seems like there is something missing or being over looked.  There is more to the buyout than was is being presented.  As consumers we need more than 1 GSM carrier.

  • Baltimore

    Everyone is talking about AT&T and T-mobile.  What about Qualcomm?  The FCC is combing both reviews together (T-mobile and Qualcomm).  They are looking at both the national and regional markets for the specturm AT&T wants to acquire.  It’s not just T-mobile the FCC will be reviewing.  Why does AT&T need both Qualcomm and T-mobile?  AT&T is buying up all GSM carriers?  It seems like there is something missing or being over looked.  There is more to the buyout than was is being presented.  As consumers we need more than 1 GSM carrier.

    • Baltimore

      Sorry, I meant to say “There is more to the buyout than what is being presented”.  There is more to the AT&T buyout of T-mobile and Qualcomm.

    • Anonymous

      Att is making life real hard on themselves…. The obvious question the fcc will ask is, “why do you need tmobile and qualcomms spectrum”? Att mightve bitten off more than they can chew. Having one gsm carrier isnt that big of a deal. Att doesnt block u from getting your device unlocked…. They might not be as cooperative as tmo in terms of unlocking, but they dont block it. They have their work cut out….. Thats for sure

  • Tmorep4597

    people have been saying the whole time w/o the deal Tmo USA was doomed and done for….i’ve been a cs rep for almost 8 years and was just trying to hold on for the deal to go thru and get my severance pay and go back to school–looks like that plan can be given up

    • Anonymous

      That’s your choice to not make school happen don’t cop out and blame it in Tmobile.
      You have had 8 years and if you had gone part time you could have had your degree.

      • Anonymous

        Hey, the critics chair is pretty comfortable, isn’t it?

        • Anonymous

          Ya if it means taking responsibility for ones self and not blaming a company or others for ones short comings.
          Plenty if people bust ass to get their degree and others fall and blame.
          Boo hoo hoo

        • Anonymous

          Jesus, you’re a sanctimonius prick!

        • Anonymous

          I am sorry you can’t handle a little truth.
          Some of us make stuff happen while others sit back and blame others for our shortcomings.
          I know countless people that busted ass working 2 jobs and made it and got their degrees.
          they didn’t sit back and wait 8 years and blame it on someone else.

        • Anonymous

          Yeah, no s*it. I make stuff happen too, and I was in the military, so unless you served too, then I’m guessing I know more about busting my a** then you ever will. 

          I know people who busted their ass working two jobs and got their degrees too, hell I know people who worked three jobs and got a degree at the same time. Congrats to them. right?

          But sitting there from your high horse telling someone that their just lazy for no good reason just makes you a judgmental asshat.

        • Anonymous

          Who hurt you?

        • Slater5150

          Who hurt him? I understand that unlike yourself he may have not had the fortunate experience of rolling over in the morning and gazing into his fathers eye’s at the ripe old age of 14 to here the words “You’re a man now son” But i still think he understands sickness when he see’s it.

        • Anonymous

          I don’t really know who hurt me, but I do have strange memories of priests and all that but we’re not really not talking about me here. 

          It’s your pain that I think we should talk about. 

          You seem like an angry sort of fellow, and I often wonder what makes people like you tick.

          I presume that it involves some sort of forbidden experience with a close family member, clergy member, or boy scout leader. 

          Was the water sports merit badge something a little different then you were expecting?

          Okay, I’m sorry, that was just cheap. 

          Or maybe you’re just traumatized because you didn’t make the football team. 

          I don’t know what it is, but you clearly have a chip on your shoulder, and you might find that the law of attraction works a little better if you work on well… being attractive. (Instead of being a judgmental as*hat.)

        • Anonymous

          Wow youare really kinky.
          I guess being around all those sweaty men in the military really changes you.
          Whatever floats your boat.

        • Slater5150

          Speaking of boats, did said mentioned father get man when you came home from burning man and tell him you were no longer a boat but you were a ferry?

        • Slater5150

          Speaking of boats, did said mentioned father get man when you came home from burning man and tell him you were no longer a boat but you were a ferry?

        • Anonymous

          Well, when I joined the military, I did it because I wanted some educational benefits, sweaty men  wern’t really on my mind, but they are apparently on yours, since you bring it up.

          Now, I understand that President Obama has repealed Don’t Ask Don’t Tell, and so, now that you and your people are free to wear the uniform, I suggest that you go down (and I don’t mean that figuratively) to your local recruiters office and sign up so that you can not only find out what it means to serve your country, but your dreams of well-chiseled, muscular men can be satisfied. 

          (And actually, I would have really enjoyed serving with someone such as yourself, because at least then I’d know that the guy who was watching my ass thought it was cute.) 

          PS. If you get the opportunity to pick your own name in the military [because you know all us military types have nicknames] I’d suggest you stay away from “Diphtheria  Dave” or “Snowball” since people might just get the wrong impression.

        • Anonymous

          What is with your redneck homophobia? First you bring up priests and boy scout leaders and now this. 
          Seek help. 

        • Anonymous

          I see we can dish it, but we have a hard time taking it.

          Typical.

          I’ve found that people who are very bitter about their lot in life tend to spend a lot of time focusing on the shortcomings of others.

          Somebody is expressing their (understandable) frustration with some situation life is throwing their way, cue ATL guy to come in and tell them why they are useless and why everything is their fault.

          You probably got hit a lot by your father. Was he a drunk?

          In any case ATL Guy, today is my long class day, so I might not reply quickly, but feel free to continue the flaming as long as you like. Its been a while since I thouroughly humiliated someone on the internet, and I’ve been looking for a fresh victim. So, if you feel the need to keep serving yourself up for the kill, keep on postin’ brother!

          Or, maybe yiou could try thinking for five minutes about what an utter and complete a**hole you sound like, and apologize to Tmorep for being such a douche.

          You may be so fortunate that life has gone your way, every step of the way. Some people are not so fortunate, and they have little roadblocks that they have to overcome, or go around. (I’m definitely one of the latter) If you’ve been successful, then enjoy your success, and try to be a good sport when you run into people who’ve had it a little harder.

          Or just continue to be an a**hole. In the end, its your loss.

        • Anonymous

          OOOOH YOU SOOOO PWNED ME!!

        • Anonymous

          I see we can dish it, but we have a hard time taking it.

          Typical.

          I’ve found that people who are very bitter about their lot in life tend to spend a lot of time focusing on the shortcomings of others.

          Somebody is expressing their (understandable) frustration with some situation life is throwing their way, cue ATL guy to come in and tell them why they are useless and why everything is their fault.

          You probably got hit a lot by your father. Was he a drunk?

          In any case ATL Guy, today is my long class day, so I might not reply quickly, but feel free to continue the flaming as long as you like. Its been a while since I thouroughly humiliated someone on the internet, and I’ve been looking for a fresh victim. So, if you feel the need to keep serving yourself up for the kill, keep on postin’ brother!

          Or, maybe yiou could try thinking for five minutes about what an utter and complete a**hole you sound like, and apologize to Tmorep for being such a douche.

          You may be so fortunate that life has gone your way, every step of the way. Some people are not so fortunate, and they have little roadblocks that they have to overcome, or go around. (I’m definitely one of the latter) If you’ve been successful, then enjoy your success, and try to be a good sport when you run into people who’ve had it a little harder.

          Or just continue to be an a**hole. In the end, its your loss.

        • Slater5150

          Rommy, from his response to your alleged homophobia, I’m going to guess he excelsat both dishing it out AND taking it. Figuratively speaking.

        • Slater5150

          Rommy, from his response to your alleged homophobia, I’m going to guess he excelsat both dishing it out AND taking it. Figuratively speaking.

        • Anonymous

          Well, when I joined the military, I did it because I wanted some educational benefits, sweaty men  wern’t really on my mind, but they are apparently on yours, since you bring it up.

          Now, I understand that President Obama has repealed Don’t Ask Don’t Tell, and so, now that you and your people are free to wear the uniform, I suggest that you go down (and I don’t mean that figuratively) to your local recruiters office and sign up so that you can not only find out what it means to serve your country, but your dreams of well-chiseled, muscular men can be satisfied. 

          (And actually, I would have really enjoyed serving with someone such as yourself, because at least then I’d know that the guy who was watching my ass thought it was cute.) 

          PS. If you get the opportunity to pick your own name in the military [because you know all us military types have nicknames] I’d suggest you stay away from “Diphtheria  Dave” or “Snowball” since people might just get the wrong impression.

        • Anonymous

          Well, when I joined the military, I did it because I wanted some educational benefits, sweaty men  wern’t really on my mind, but they are apparently on yours, since you bring it up.

          Now, I understand that President Obama has repealed Don’t Ask Don’t Tell, and so, now that you and your people are free to wear the uniform, I suggest that you go down (and I don’t mean that figuratively) to your local recruiters office and sign up so that you can not only find out what it means to serve your country, but your dreams of well-chiseled, muscular men can be satisfied. 

          (And actually, I would have really enjoyed serving with someone such as yourself, because at least then I’d know that the guy who was watching my ass thought it was cute.) 

          PS. If you get the opportunity to pick your own name in the military [because you know all us military types have nicknames] I’d suggest you stay away from “Diphtheria  Dave” or “Snowball” since people might just get the wrong impression.

        • Slater5150

          Who let the smart access customer on here?

        • Anonymous

          Yeah, no s*it. I make stuff happen too, and I was in the military, so unless you served too, then I’m guessing I know more about busting my a** then you ever will. 

          I know people who busted their ass working two jobs and got their degrees too, hell I know people who worked three jobs and got a degree at the same time. Congrats to them. right?

          But sitting there from your high horse telling someone that their just lazy for no good reason just makes you a judgmental asshat.

        • Anonymous

          I am sorry you can’t handle a little truth.
          Some of us make stuff happen while others sit back and blame others for our shortcomings.
          I know countless people that busted ass working 2 jobs and made it and got their degrees.
          they didn’t sit back and wait 8 years and blame it on someone else.

      • Slater5150

        Jobs like those of T mobile reps are the ones that drive people twards further education…..

      • Tmorep4597

        and apparently you don’t have two kids whose preschool costs for a whole week would be more than my monthly rent….so now i suppose it’s my own fault for having kids in the first place b/c they’re stopping me from going to school too???? get a life assclown and maybe think before you make assumptions on somebody

      • Tmorep4597

        and apparently you don’t have two kids whose preschool costs for a whole week would be more than my monthly rent….so now i suppose it’s my own fault for having kids in the first place b/c they’re stopping me from going to school too???? get a life assclown and maybe think before you make assumptions on somebody

      • Tmorep4597

        and apparently you don’t have two kids whose preschool costs for a whole week would be more than my monthly rent….so now i suppose it’s my own fault for having kids in the first place b/c they’re stopping me from going to school too???? get a life assclown and maybe think before you make assumptions on somebody

        • Anonymous

          you made decisions now live with them.
          yes you chose to have kids before finishing school so it’s 100 percent your responsibility.
          1 minute you claim you were about to get a severance package and not have to work the next all of sudden you have to work.
          sorry but your story just doesn’t add up

        • Tmorep4597

          and not once was blame placed on anyone-that was an ASSumption you made dickweed….my point was having a large amount of money sitting in the bank would give me the opportunity to finish school while affording the ridiculous daycare costs i have and it seems that possibility may be lost….i really don’t get people like you who think they have the right to make an opinion on everything bc you breath but newsflash nobody wants to read your drivel….you wonder why tmo reps are lacking in enthusiasm? bc we have to deal with assholes like yourself for 8-10 hrs a day…..so i suppose now it’s my fault for not trying to find a different means of employment in the incredible economy that we’re having huh? well the reason why i’ve stayed with t-mobile for 8 years is bc i love what i do and get satisfaction speaking and helping worthwhile customers not matter how few and far between they are and this company has helped me support my family in more ways than one

          i’m glad everything is so wonderful in your egotistical world but some of us live in reality….try it sometime douche

        • Anonymous

          Now you throw your own kid under the bus. 
          WOW your child is being looked after and you complain about the amount of money it costs?
          Didn’t you research this BEFORE having a child?
          It sounds like you maybe shouldnt have had a child. 
          You say your love working for Tmobile but call customers assholes. 
          It really sounds like you have more issues than I can help you with. 
          I think you need to talk with a therapist or something. 

        • Tmorep4597

          never asked for anyone’s help

          making a statement that someone shouldn’t have had a child is crossing the line

          go f**k yourself

        • Tmorep4597

          never asked for anyone’s help

          making a statement that someone shouldn’t have had a child is crossing the line

          go f**k yourself

        • Tmobile explain

          Following this is a train wreck but have to agree that maybe toy shouldn’t have had a kid if you can’t afford it. I have to agree your story has holes in it.

        • Tmobile explain

          Following this is a train wreck but have to agree that maybe toy shouldn’t have had a kid if you can’t afford it. I have to agree your story has holes in it.

        • Tmobile explain

          Following this is a train wreck but have to agree that maybe toy shouldn’t have had a kid if you can’t afford it. I have to agree your story has holes in it.

        • Tmorep4597

          and not once was blame placed on anyone-that was an ASSumption you made dickweed….my point was having a large amount of money sitting in the bank would give me the opportunity to finish school while affording the ridiculous daycare costs i have and it seems that possibility may be lost….i really don’t get people like you who think they have the right to make an opinion on everything bc you breath but newsflash nobody wants to read your drivel….you wonder why tmo reps are lacking in enthusiasm? bc we have to deal with assholes like yourself for 8-10 hrs a day…..so i suppose now it’s my fault for not trying to find a different means of employment in the incredible economy that we’re having huh? well the reason why i’ve stayed with t-mobile for 8 years is bc i love what i do and get satisfaction speaking and helping worthwhile customers not matter how few and far between they are and this company has helped me support my family in more ways than one

          i’m glad everything is so wonderful in your egotistical world but some of us live in reality….try it sometime douche

        • Anonymous

          sounds like you did some very very poor planning before bringing a life into this world

        • Slater5150

          So how is it that an esteemed life counselor such as yourself ATL finds the time to come in here with such helpful advise and tips? PRO BONO no less!!!!!!

        • Anonymous

          Thanks man! I appreciate that. 
          No worries I dont mind helping when I can. 

        • Anonymous

          Thanks man! I appreciate that. 
          No worries I dont mind helping when I can. 

    • Anonymous

      That’s your choice to not make school happen don’t cop out and blame it in Tmobile.
      You have had 8 years and if you had gone part time you could have had your degree.

    • Anonymous

      Yeah that money wouldve been nice, but what can u do? The deal isnt done yet….. Luckily for att, the doj doesnt have the final say, but they need to win this upcoming trial in order to have a chance at gaining approval from the fcc though.

    • Anonymous

      Go back to school anyway :) Its the best investment you’ll ever make in your future. 

    • ConspiracyTheory

      So many of us have been hoping and waiting for severance pay. I don’t care who buys us. Just give us our severance pay. I’m trying to keep a low profile with the HR Mafia body snatchers! Working for tmob aint what it use to be when sue nokes was running things.

  • Danny

    I wish a rich private investor or group of investors would come out of the closet and counter offer AT&T now.  Even a public company like Time Warner or anyone with the cash to make a one time large investment in T-Mobile’s infrastructure (backhaul & cell sites) and use the CableCo’s large swatch of AWS licensing for LTE.  

    The CableCo’s could use T-Mobile as part of their quadruple play offering and with T-Mobile’s GSM network they could provide a competitive GSM roaming option for travelers who visit from overseas in a way DT never did.  

    T-Mobile has a decent network in most major cities.  The problem is DT was too cheap to expand outside of big cities.  With the right investor and mindset they can change all of that.

    I’m waiting for the President’s speech on jobs and infrastructure later this week.  I hope there is an opportunity for telecom investment subsidies so we can put our contractors back to work across the US and get corporations hiring again for our industry and sector.   This might give the needed push for those sitting on billions and billions of cash to make a run for a company like T-Mobile USA.  

    • Anonymous

      Sure! More government subsidies are clearly the answer! Lets hear it for corporate welfare! 

    • Anonymous

      Sure! More government subsidies are clearly the answer! Lets hear it for corporate welfare! 

    • Anonymous

      Sure! More government subsidies are clearly the answer! Lets hear it for corporate welfare! 

    • Anonymous

      Sure! More government subsidies are clearly the answer! Lets hear it for corporate welfare! 

    • Anonymous

      Sure! More government subsidies are clearly the answer! Lets hear it for corporate welfare! 

      • Yourmomma

        Actually Rommy it’s the corporate type who have been getting the welfare from the govt. except they never reinvest it back into regular people like us.  

        Corporations like AT&T have been enjoying Bush tax cuts for years, hoarding their cash and employing cheap Indians and Filippinos overseas instead of hiring Americans. 

        And all this time they keep blaming the govt for not doing their part to promote jobs!  

        Companies like Exxon, Catepillar and Apple need to create factories here in the US and help put the people back to work.  It will only work to their advantage as more of that money will be put back into the economy to spend on their products and services. 

        • Anonymous

          Yeah, no f***ing crap. You mean big corporations have been getting handouts from big government and spending those handouts on cheap overseas labor instead of employing real Americans?

          Congratulations! You’ve been paying attention for the last twenty years! You get a gold star!

          So the answer then, is to give the piggies more food at the piggie trough? 

          Zoowee! Zoowee!

          STOP GIVING THE BIG CORPORATIONS TAX MONEY. Want to balance the budget? End corporate welfare! We just can’t afford it anymore. 

          (And yes, of course they need to bring the jobs home. If I was running the Justice Department I would make AT&T bring like twenty thousand jobs home if they wanted to get this deal off the ground.)

    • JBLmobileG1

      I think Walmart should buy Tmobile. After all they have the money not to mention their very own cellular service (Walmart Family Mobile) uses Tmobile’s network. Heck you can even use their sim card in any Tmobile branded phone and it will work without being unlocked. I also think this would be a good move only because if Tmobile does go down the drain there will be a lot of angry Walmart customers without service…. and I think Walmart wants to avoid that situation…. If the AT&T deal is approved I am sure they would work something out with Walmart however they’d end up having to replace a whole lot of phones because you can’t expect every customer to buy a new one since its a contract free service but still considered post paid.

    • JBLmobileG1

      I think Walmart should buy Tmobile. After all they have the money not to mention their very own cellular service (Walmart Family Mobile) uses Tmobile’s network. Heck you can even use their sim card in any Tmobile branded phone and it will work without being unlocked. I also think this would be a good move only because if Tmobile does go down the drain there will be a lot of angry Walmart customers without service…. and I think Walmart wants to avoid that situation…. If the AT&T deal is approved I am sure they would work something out with Walmart however they’d end up having to replace a whole lot of phones because you can’t expect every customer to buy a new one since its a contract free service but still considered post paid.

      • JBLmobileG1

        To add to my idea Walmart could just be the mother company that supplied the money just like DT but have Tmobile run on its own. It could be a wise investment for them considering almost everyone has a cell phone and it would enable them to continue their own service while helping others. What does everyone else think?

  • Danny

    I wish a rich private investor or group of investors would come out of the closet and counter offer AT&T now.  Even a public company like Time Warner or anyone with the cash to make a one time large investment in T-Mobile’s infrastructure (backhaul & cell sites) and use the CableCo’s large swatch of AWS licensing for LTE.  

    The CableCo’s could use T-Mobile as part of their quadruple play offering and with T-Mobile’s GSM network they could provide a competitive GSM roaming option for travelers who visit from overseas in a way DT never did.  

    T-Mobile has a decent network in most major cities.  The problem is DT was too cheap to expand outside of big cities.  With the right investor and mindset they can change all of that.

    I’m waiting for the President’s speech on jobs and infrastructure later this week.  I hope there is an opportunity for telecom investment subsidies so we can put our contractors back to work across the US and get corporations hiring again for our industry and sector.   This might give the needed push for those sitting on billions and billions of cash to make a run for a company like T-Mobile USA.  

  • Nrkelly

    Grammar is an important concept when writing for public consumption.

  • Nrkelly

    Grammar is an important concept when writing for public consumption.

    • http://tmonews.com David

      Meaning?

    • http://tmonews.com David

      Meaning?

      • Nrkelly

        You didn’t use it correctly David. The article is hard to read and is lacking proper grammar & punctuation. C’mon. That’s not like you. I’m not trying to be rude. Just pointing out that it’s making this difficult to read.

        • Nobody who matters

          I’ve always wanted to say this. The people who write for this website NEED to step up their grammar. It’s unacceptable..

        • http://tmonews.com David

          Well I’ll do my best to shore up any mistakes before I hit “publish” from now on.

        • PatheticLoser

          Comma Splice. :)

        • CM Punk’s Text

          David, a lot of us enjoy your writing and could care less about the minor grammatical errors.

          Those of us who are actually intelligent know the difference between a journalistic publication that goes through a number of editors before being published and an up to the minute blog run by, essentially, one man.

          In short, thank you :)

        • http://tmonews.com David

          No, thank you for your comments and realistic point of view! I try to edit stuff but sometimes it gets edited after the publication of the story because things are time sensitive!

        • Wilma Flintstone

          In a time like this, all some people can look at is other people’s mistakes.  I actually like that David makes mistakes and typos.  It shows that he’s human and not a typical News Anchor who always has to be perfect.  Oh yeah I forgot, THEY MAKE ERRORS AND MISTAKES TOO!!!  Ok, the President then, HE MAKES MISTAKES TOO!!!  All of them have.  Here’s a message to you typo drama queens that can’t do anything but find errors in other people’s writing yet can’t even spell to save your own lives:

          “Get a life.  Find something else to criticize.  There are many more important things than grammar to constantly whine and complain about.  I got a few questions for you all that are complaining: 

          1. Are you PAYING for this site?  No.

          2. Are you donating to help keep this site going?  No.

          3. Are you being a complete Dung Vocalist by constantly coming back to a site that you obviously know will have mistakes here and there?  Ding Ding Ding!!! WE HAVE A WINNER!!!

          So if you know the site will have typos, don’t come back to it if it bothers you so much.  Here’s your typical response, “But I like this site”.  If you like this site, learn to deal with and overlook small things like typos and grammar mistakes. 

          There are waayyy bigger problems and issues going on right now to be worrying about grammar and typos.”

          Submitted for the approval of the Midnight Society,

          Wilma Flintstone

        • Mr. Webster

          Grammer?! How about just basic spelling. Lots of basic spelling errors in this article that make it hard to understand.  What is “paying the feel” by the way? sounds like some sort of prostitution going on (which may be accurate nonetheless). It’s bad enough that 90% of the comments posted here are completely unintelligible, but when the articles aren’t even spell-checked… it’s completely ridiculous.

        • http://tmonews.com David

          It’s damn near impossible to criticize my “grammar” when you don’t even get that right. I understand that every article isn’t perfect, and I lose to be constructively criticized so I improve. Still, might want to check your comment before posting.

        • Anonymous

          Lol!

        • Nobody who matters

          Really? What did I not get right? And why was the word grammar placed inside of quotations? If you’re implying that I spelled the word wrong, that’s ridiculous. My spelling of the word “grammar” is entirely correct. It is not spelled “grammer”.

          /facepalm

        • http://tmonews.com David

          You spelled “grammer.”

        • http://tmonews.com David

          You spelled “grammer.”

        • http://tmonews.com David

          You spelled “grammer.”

        • http://tmonews.com David

          You spelled “grammer.”

        • http://tmonews.com David

          You spelled “grammer.”

        • Nobody who matters

          Sorry, I thought you were referring to me, not Rommy0515.

        • http://tmonews.com David

          You spelled “grammer.”

        • http://tmonews.com David

          It’s damn near impossible to criticize my “grammar” when you don’t even get that right. I understand that every article isn’t perfect, and I lose to be constructively criticized so I improve. Still, might want to check your comment before posting.

        • Anonymous

          Is it really a productive use of time to criticize people’s grammar on the internet?

          Did you think you were reading the New York Times?

        • Mr. Webster

          Grammer?! How about just basic spelling. Lots of basic spelling errors in this article that make it hard to understand.  What is “paying the feel” by the way? sounds like some sort of prostitution going on (which may be accurate nonetheless). It’s bad enough that 90% of the comments posted here are completely unintelligible, but when the articles aren’t even spell-checked… it’s completely ridiculous.

        • Mike

          @ Nrkelly….difficult to read???? you want it spoon fed?

        • Wilma Flintstone

          C’mon is not proper grammar.  You must spell out and pronunciate your wording such as “Come On”.

        • Wilma Flintstone

          C’mon is not proper grammar.  You must spell out and pronunciate your wording such as “Come On”.

    • http://tmonews.com David

      Meaning?

    • http://tmonews.com David

      Meaning?

    • Wilma Flintstone

      Yeah, there has never been any typos in the New York or LA Times.  How about the Chicago Tribune?  Nope, no errors there either.  Atlanta Journal Constitution?  Nope, not a single error or misspelling.  David, shame on you for being completely human. Shame Shame Shame, A Low Down Dirty Shame

      • OhLookGlitter

        Actually, though they may not have spelling errors they did have news errors: DEWEY DEFEATS TRUMAN. That is all. I love TmoNews and at least the NEWS (the most important part fyi) is dead-on! Keep up the good work David!  :)

        • Wilma Flintstone

          You do realize that I was using Sarcasm there right?

        • Wilma Flintstone

          You do realize that I was using Sarcasm there right?

        • Wilma Flintstone

          You do realize that I was using Sarcasm there right?

        • Wilma Flintstone

          You do realize that I was using Sarcasm there right?

        • Wilma Flintstone

          You do realize that I was using Sarcasm there right?

        • Wilma Flintstone

          You do realize that I was using Sarcasm there right?

        • Wilma Flintstone

          You do realize that I was using Sarcasm there right?

        • Wilma Flintstone

          You do realize that I was using Sarcasm there right?

    • Wilma Flintstone

      Yeah, there has never been any typos in the New York or LA Times.  How about the Chicago Tribune?  Nope, no errors there either.  Atlanta Journal Constitution?  Nope, not a single error or misspelling.  David, shame on you for being completely human. Shame Shame Shame, A Low Down Dirty Shame

  • Danny

    Let’s bring back the brand Voicestream and with the help of the CableCo’s create a new US Mobility company with rate plans that make sense and a new LTE network that can compete head to head with the Verizon’s of the world.  

  • Danny

    Let’s bring back the brand Voicestream and with the help of the CableCo’s create a new US Mobility company with rate plans that make sense and a new LTE network that can compete head to head with the Verizon’s of the world.  

  • derek 21

    Starting your own website is a great concept for people that come to other people’s website and criticize it when they spend their own personal time to come to it and read the information. People are a trip

  • derek 21

    Starting your own website is a great concept for people that come to other people’s website and criticize it when they spend their own personal time to come to it and read the information. People are a trip

    • Mike

      @derek21. yea that may true but your are coming to this website  spending time criticizing other people who are criticizing the website
       

      • CM Punk’s Text

        And you are the one complaining about it :)

  • Gumbitter88

    I hope the FCC would kill the deal and so AT&T would just give tmobile 3 billion dollars and 3 billion asset. Dt can get the money and shut the hell up and leave the country and tmobile can gain more coverage and private investor would buy them but still provide good prices on plan like tmobile is known for. And let dt look at tmobile USA in the future be more profitable and they probably themselves in the ass for leaving. I know tmobile uk is the biggest over seas since they brought orange but wouldn’t u think if u have two different market make Money rather then stay in one market? I’m just saying I’m not a genius

  • PostAs

    I’m PO’d at DT the most here.  By labeling T-Mobile USA as “discontinued operations,” they have essentially given up and stopped all network enhancements.  It was supposed to be “business as usual,” until the day the buyout was approved but those slimy German owners have shown their true colors.  (Don’t call me racist I’m half German)

    At this point I don’t care if AT&T takes over anymore.  AT&T is rolling out LTE in our area by years end and I could sure use more HSPA coverage when I’m outside of any given city.  Plus I’ll be able to keep my rate plan for the near future. 

    We’ll have the largest free M2M community and with AT&T’s clout we will get first dibs on the hottest hardware from Apple, RIM or anything the Android community throws our way.  

  • PostAs

    I’m PO’d at DT the most here.  By labeling T-Mobile USA as “discontinued operations,” they have essentially given up and stopped all network enhancements.  It was supposed to be “business as usual,” until the day the buyout was approved but those slimy German owners have shown their true colors.  (Don’t call me racist I’m half German)

    At this point I don’t care if AT&T takes over anymore.  AT&T is rolling out LTE in our area by years end and I could sure use more HSPA coverage when I’m outside of any given city.  Plus I’ll be able to keep my rate plan for the near future. 

    We’ll have the largest free M2M community and with AT&T’s clout we will get first dibs on the hottest hardware from Apple, RIM or anything the Android community throws our way.  

  • Anonymous

    DT has dumped T-Mobile USA…..it’s a matter how big the cuts are. 25%? I think a bigger percentage will be necessary to appease the DOJ and possibly the FCC.

  • Anthonyc1a

    thony,well att should be stay way from t_mobile forever ,because t_mobile is a very good company and att its not,is a horrible company,l love t_mobile,they have goog prices,thanks DOJ***.

  • Anthonyc1a

    thony,well att should be stay way from t_mobile forever ,because t_mobile is a very good company and att its not,is a horrible company,l love t_mobile,they have goog prices,thanks DOJ***.

  • Anthonyc1a

    thony,well att should be stay way from t_mobile forever ,because t_mobile is a very good company and att its not,is a horrible company,l love t_mobile,they have goog prices,thanks DOJ***.

  • at&t

    Perhaps everyone has their blinders on and think about a transaction like this emotionally instead of logically.

    Reality check:  Perhaps there is no more room for a mediocre carrier in an industry dominated by the big guns (Verizon and AT&T) at the top and the little leaching companies (Metro PCS, Virgin, Boost) making a killing at the bottom of the barrel.  

    T-Mobile USA has failed to distinguish itself by price, coverage or hardware.  

    The T-Mobile brand is dead.  Face it. Fond memories of great rate plans and happy customer service are a distant memory.  

    Assimilate or be assimilated.

    Thanks!

    AT&T

    • No One Special

      Absolutely true.

  • Anonymous

    This is mega huge news.  Most of the people on this site were banking on that $6 billion in cash and spectrum as some sort of miracle to save T-mobile USA.

     As a customer….  if the break up fee is void, the value of T-mobile USA took a huge nosedive because of all this mess.  There’s even less reason for DT to invest in T-mobile USA. 

    What a complete disaster!

    • lily

      “AT&T annihilates a competitor no matter which way this deal closes!”

      Truer words have never been spoken.

      You have nailed it – and it’s something DT didn’t care about as long as they got their money. They bled TMO USA dry for years propping up their failing landline and European interests, investing only when it became clear they had to in order to be more attractive to potential buyers. It also accounts for all the weirdness going on in CS regarding selling.

  • Nearmsp

    AT&T used its size to get an exclusive 3+ years of iPhone. If AT&T had not been allowed by the Anti-trust for previous take overs, it would never have been in a position to so dominate the US wireless business. If T-mobile had got the iPhone at the same time as AT&T, DT would not have been selling T-mobile. Rubber stamping this deal once again and creating a US wide GSM monopoly would be disastrous for competition and prices. AT&T knows that this October all networks will be able to have an iPhone and wishes to grab T-mobile before the reverse flood gates open. Macrumors has reported that Sprint leaked that iPhone will be available on 1st October and this makes it credible because DT has also opened pre-launch tickets for the next iPhone. DT would be better off getting out of this deal for the sake of its shareholders.

  • Nearmsp

    AT&T used its size to get an exclusive 3+ years of iPhone. If AT&T had not been allowed by the Anti-trust for previous take overs, it would never have been in a position to so dominate the US wireless business. If T-mobile had got the iPhone at the same time as AT&T, DT would not have been selling T-mobile. Rubber stamping this deal once again and creating a US wide GSM monopoly would be disastrous for competition and prices. AT&T knows that this October all networks will be able to have an iPhone and wishes to grab T-mobile before the reverse flood gates open. Macrumors has reported that Sprint leaked that iPhone will be available on 1st October and this makes it credible because DT has also opened pre-launch tickets for the next iPhone. DT would be better off getting out of this deal for the sake of its shareholders.

  • Nearmsp

    AT&T used its size to get an exclusive 3+ years of iPhone. If AT&T had not been allowed by the Anti-trust for previous take overs, it would never have been in a position to so dominate the US wireless business. If T-mobile had got the iPhone at the same time as AT&T, DT would not have been selling T-mobile. Rubber stamping this deal once again and creating a US wide GSM monopoly would be disastrous for competition and prices. AT&T knows that this October all networks will be able to have an iPhone and wishes to grab T-mobile before the reverse flood gates open. Macrumors has reported that Sprint leaked that iPhone will be available on 1st October and this makes it credible because DT has also opened pre-launch tickets for the next iPhone. DT would be better off getting out of this deal for the sake of its shareholders.

  • Silk7412

    Leave it ATT to have a back door out of the deal without paying the fee’s.. Is this what we here to look forward to? Tell us one thing and do another? True -we don’t have all the info and doc’s of this takeover but what we seen how att will lies to get there way. Sorry to see Tmobile  go down like this.

  • http://pulse.yahoo.com/_AWWIKW6MNPUHOC4OVSHWUDWAHM Fabio

    As usual AT&T always gets its way, one way or another. But they won’t get T-Mobile… :D

    • ColdFeet

      Fabio, you’re saying it like AT&T busted down T-Mobile’s doors and is taking over. You need to understand that everything involved in this deal, DT agreed to. Why? Because they are interested in selling T-Mobile USA.

    • ColdFeet

      Fabio, you’re saying it like AT&T busted down T-Mobile’s doors and is taking over. You need to understand that everything involved in this deal, DT agreed to. Why? Because they are interested in selling T-Mobile USA.

  • Fred

    It’s pretty standard in these sorts of deals to have stipulations about time constraints and value of the company being taken over.

    It’s not like ATT suddenly pulled this out of nowhere. DT and their attorneys signed off on it.

    • Anonymous

      True…..att wasn’t just gonna let dt/tmo deteriorate in the meantime while the deal went thru the approval process…..makes sense considering tmos leadership has been saying “business as usual” and whatnot

    • Anonymous

      True…..att wasn’t just gonna let dt/tmo deteriorate in the meantime while the deal went thru the approval process…..makes sense considering tmos leadership has been saying “business as usual” and whatnot

    • Anonymous

      True…..att wasn’t just gonna let dt/tmo deteriorate in the meantime while the deal went thru the approval process…..makes sense considering tmos leadership has been saying “business as usual” and whatnot

      • IT Guy

        I’m kind of suprised that nobody brought thsi up sooner. Only one article I read at the time the deal was announced said anything about it. I think it might have been Network World. They did a little sidebar column saying “What if the deal fails?” but even they didn’t dig in enough to talk about what terms needed to be met for them to get the $6b in cash and spectrum to come.

      • IT Guy

        I’m kind of suprised that nobody brought thsi up sooner. Only one article I read at the time the deal was announced said anything about it. I think it might have been Network World. They did a little sidebar column saying “What if the deal fails?” but even they didn’t dig in enough to talk about what terms needed to be met for them to get the $6b in cash and spectrum to come.

      • IT Guy

        I’m kind of suprised that nobody brought thsi up sooner. Only one article I read at the time the deal was announced said anything about it. I think it might have been Network World. They did a little sidebar column saying “What if the deal fails?” but even they didn’t dig in enough to talk about what terms needed to be met for them to get the $6b in cash and spectrum to come.

      • IT Guy

        I’m kind of suprised that nobody brought thsi up sooner. Only one article I read at the time the deal was announced said anything about it. I think it might have been Network World. They did a little sidebar column saying “What if the deal fails?” but even they didn’t dig in enough to talk about what terms needed to be met for them to get the $6b in cash and spectrum to come.

      • IT Guy

        I’m kind of suprised that nobody brought thsi up sooner. Only one article I read at the time the deal was announced said anything about it. I think it might have been Network World. They did a little sidebar column saying “What if the deal fails?” but even they didn’t dig in enough to talk about what terms needed to be met for them to get the $6b in cash and spectrum to come.

  • Anonymous

    You have brief description of all of thing you gave us… i am now the permanent visitor of you
     

  • Anonymous

    Great great work

  • http://www.iphoneleaks.net/ iphoneleaks

    i Think the Not losing hope is the best thing to move forward… am i right??????

  • Susand89

    AT&T stalling so they don’t have to pay the fee past a certain date??? maybe??

  • Wilma Flintstone

    Don’t feed the troll Bigmixxx.

  • My2Cents

    Gosh People!  Get a grip.  How many times have I heard “a person familiar with the contract” garbage in these Reuters article.  How about in Q1-2011 when Reuters reported a person inside of DT informed us that DT was merging with Sprint??   The breakup fee was put in place because both parties realized that T-mobile would lose customers and value once the deal was announced.  If AT&T could walk away without consequences then why not sign the deal, screw over DT, and leave TMO in a bad position?  There is a reason why there is a breakup fee, AT&T put of a ridiculus amount of money, why most analysts say they overpaid for the company. 

    Let’s wait for some real facts before we get all excited about this.  Or we can just wait for the next T-mobile’s going to get the Iphone rumour and get ourselves going over that.

  • macman37

    Guys and Gals,

    Here’s an update from CNET on this story basically saying that there will be a break-up fee if the deal does not go through.  {http://news.cnet.com/8301-1035_3-20102007-94/deutsche-telekom-we-are-entitled-to-a-breakup-fee/}.

  • http://tmonews.com David

    I agree with what you are saying, but in our regards I feel a need to report the story so long as it is making the rounds on legitimate and reliable news sources. I have no reason to doubt the Reuters organization or their sources.

    • IT Guy

      I would tend to think there’s some truth to both the WSJ article and the report yesterday from Reuters.

      When these kinds of deals come together, they are pretty thorough on the terms and conditions, and what happens should things fall through.

      I suspect that while there are stipulations that would nullify AT&T’s requirement to pay out to DT if things don’t work out, neither side thinks those terms will be met.

    • IT Guy

      I would tend to think there’s some truth to both the WSJ article and the report yesterday from Reuters.

      When these kinds of deals come together, they are pretty thorough on the terms and conditions, and what happens should things fall through.

      I suspect that while there are stipulations that would nullify AT&T’s requirement to pay out to DT if things don’t work out, neither side thinks those terms will be met.

    • IT Guy

      I would tend to think there’s some truth to both the WSJ article and the report yesterday from Reuters.

      When these kinds of deals come together, they are pretty thorough on the terms and conditions, and what happens should things fall through.

      I suspect that while there are stipulations that would nullify AT&T’s requirement to pay out to DT if things don’t work out, neither side thinks those terms will be met.

    • IT Guy

      I would tend to think there’s some truth to both the WSJ article and the report yesterday from Reuters.

      When these kinds of deals come together, they are pretty thorough on the terms and conditions, and what happens should things fall through.

      I suspect that while there are stipulations that would nullify AT&T’s requirement to pay out to DT if things don’t work out, neither side thinks those terms will be met.

  • jon

    Head over to the wall street journal. They have an article posted today that says that tmobile is in no danger of losing the breakup fee…

  • ItsMichaelNotMike

    As I said back in April, I assume the contract between the parties has stringent conditions that must be met in order for DT to get paid.  There’s no doubt terms that make it quite difficult for DT to ever see that money.

    Moreover, my crystal ball tells me that if this deal is not approved, the parties will end up in litigation over the payment. What a laugh, AT&T stiffing DT.

    Out of this mess DT is going to be the biggest loser.  AT&T will simply move forward and carry on business as usual. All it lost out of this is the opportunity to take out a competitor (which was its real motive in all this).  AT&T will also save a bucket load of cash when it stiffs DT out of the $6 billion. AT&T will tie up the payment in litigation for five years, set aside the cash in reserves so it earns interest and at worst settle with DT by paying 10 to 20 cents on the dollar. 

    In contrast, the TMOUS brand has been severely weakened by the acquisition announcement, since most people now have the perception that TMOUS is going out of business.  People are not going to sign a $2000 contract if they think a company
    will be gone and their phones stop working. (While this may not be what happens, prospective customer perceptions are what matter.) 

    Add to this TMOUS’s degrading customer service and support the question is not if TMOUS will lose subscribers each quarter, the curiosity is “how many will it be this time.” 

    Correct me if I’m wrong, but despite TMOUS’s promotions and discounts over the past few quarters, hasn’t TMOUS been losing thousands of post-paid customers? 

    Making this “perfect storm” of TMOUS’s fall complete (what few people talk about) is what I mentioned back when Herr Humm’s memo leaked, the one to employees that there was no truth to TMOUS being up for sale and for the employees to stay loyal, man their posts, and work hard. 

    The fact is, no one at T-Mobile gives a rip about what’s going on.  They don’t care about the acquisition or what happens to the Company.  Why should they.  Every employee knows DT has thrown them under the bus and eventually into the unemployment line.  With morale so low no one working for TMOUS is doing anything to curb subscriber losses.

    End result, TMOUS is a depreciating asset.  In this tanked economy that’s not unusual.  But great for AT&T and unfortunate for DT, my money is on DT not seeing the $6 billion.  I assume that AT&T’s crack number crunchers and street smart lawyers saw to that in the Purchase/Sale Agreement.

  • ItsMichaelNotMike

    As I said back in April, I assume the contract between the parties has stringent conditions that must be met in order for DT to get paid.  There’s no doubt terms that make it quite difficult for DT to ever see that money.

    Moreover, my crystal ball tells me that if this deal is not approved, the parties will end up in litigation over the payment. What a laugh, AT&T stiffing DT.

    Out of this mess DT is going to be the biggest loser.  AT&T will simply move forward and carry on business as usual. All it lost out of this is the opportunity to take out a competitor (which was its real motive in all this).  AT&T will also save a bucket load of cash when it stiffs DT out of the $6 billion. AT&T will tie up the payment in litigation for five years, set aside the cash in reserves so it earns interest and at worst settle with DT by paying 10 to 20 cents on the dollar. 

    In contrast, the TMOUS brand has been severely weakened by the acquisition announcement, since most people now have the perception that TMOUS is going out of business.  People are not going to sign a $2000 contract if they think a company
    will be gone and their phones stop working. (While this may not be what happens, prospective customer perceptions are what matter.) 

    Add to this TMOUS’s degrading customer service and support the question is not if TMOUS will lose subscribers each quarter, the curiosity is “how many will it be this time.” 

    Correct me if I’m wrong, but despite TMOUS’s promotions and discounts over the past few quarters, hasn’t TMOUS been losing thousands of post-paid customers? 

    Making this “perfect storm” of TMOUS’s fall complete (what few people talk about) is what I mentioned back when Herr Humm’s memo leaked, the one to employees that there was no truth to TMOUS being up for sale and for the employees to stay loyal, man their posts, and work hard. 

    The fact is, no one at T-Mobile gives a rip about what’s going on.  They don’t care about the acquisition or what happens to the Company.  Why should they.  Every employee knows DT has thrown them under the bus and eventually into the unemployment line.  With morale so low no one working for TMOUS is doing anything to curb subscriber losses.

    End result, TMOUS is a depreciating asset.  In this tanked economy that’s not unusual.  But great for AT&T and unfortunate for DT, my money is on DT not seeing the $6 billion.  I assume that AT&T’s crack number crunchers and street smart lawyers saw to that in the Purchase/Sale Agreement.

  • ItsMichaelNotMike

    As I said back in April, I assume the contract between the parties has stringent conditions that must be met in order for DT to get paid.  There’s no doubt terms that make it quite difficult for DT to ever see that money.

    Moreover, my crystal ball tells me that if this deal is not approved, the parties will end up in litigation over the payment. What a laugh, AT&T stiffing DT.

    Out of this mess DT is going to be the biggest loser.  AT&T will simply move forward and carry on business as usual. All it lost out of this is the opportunity to take out a competitor (which was its real motive in all this).  AT&T will also save a bucket load of cash when it stiffs DT out of the $6 billion. AT&T will tie up the payment in litigation for five years, set aside the cash in reserves so it earns interest and at worst settle with DT by paying 10 to 20 cents on the dollar. 

    In contrast, the TMOUS brand has been severely weakened by the acquisition announcement, since most people now have the perception that TMOUS is going out of business.  People are not going to sign a $2000 contract if they think a company
    will be gone and their phones stop working. (While this may not be what happens, prospective customer perceptions are what matter.) 

    Add to this TMOUS’s degrading customer service and support the question is not if TMOUS will lose subscribers each quarter, the curiosity is “how many will it be this time.” 

    Correct me if I’m wrong, but despite TMOUS’s promotions and discounts over the past few quarters, hasn’t TMOUS been losing thousands of post-paid customers? 

    Making this “perfect storm” of TMOUS’s fall complete (what few people talk about) is what I mentioned back when Herr Humm’s memo leaked, the one to employees that there was no truth to TMOUS being up for sale and for the employees to stay loyal, man their posts, and work hard. 

    The fact is, no one at T-Mobile gives a rip about what’s going on.  They don’t care about the acquisition or what happens to the Company.  Why should they.  Every employee knows DT has thrown them under the bus and eventually into the unemployment line.  With morale so low no one working for TMOUS is doing anything to curb subscriber losses.

    End result, TMOUS is a depreciating asset.  In this tanked economy that’s not unusual.  But great for AT&T and unfortunate for DT, my money is on DT not seeing the $6 billion.  I assume that AT&T’s crack number crunchers and street smart lawyers saw to that in the Purchase/Sale Agreement.

  • ItsMichaelNotMike

    Fair enough Jon, but with the DOJ filing the Complaint there’s a likelihood the
    acquisition will not happen. So now is the appropriate time to discuss
    if DT will ever see a penny of that breakup fee money from AT&T.  To be sure, David would be remiss to not feature the discussion on his Site.

    As far as waiting for someone to leak the “actual clause,” since no one but the contracting parties are going to ever see the terms of the Purchase/Sale Agreement, we are left with our opinions, speculation, and digesting the contemplations of  “anonymous sources”
    and M/A experts.

    In any event, payment of the $6 billion fee is now an issue.  Plus many people find it dramatic and quite interesting, will AT&T ultimately to pay the $6 billion in cash and prizes to DT. (My opinion is that it won’t.)

  • ItsMichaelNotMike

    Fair enough Jon, but with the DOJ filing the Complaint there’s a likelihood the
    acquisition will not happen. So now is the appropriate time to discuss
    if DT will ever see a penny of that breakup fee money from AT&T.  To be sure, David would be remiss to not feature the discussion on his Site.

    As far as waiting for someone to leak the “actual clause,” since no one but the contracting parties are going to ever see the terms of the Purchase/Sale Agreement, we are left with our opinions, speculation, and digesting the contemplations of  “anonymous sources”
    and M/A experts.

    In any event, payment of the $6 billion fee is now an issue.  Plus many people find it dramatic and quite interesting, will AT&T ultimately to pay the $6 billion in cash and prizes to DT. (My opinion is that it won’t.)

  • ItsMichaelNotMike

    Fair enough Jon, but with the DOJ filing the Complaint there’s a likelihood the
    acquisition will not happen. So now is the appropriate time to discuss
    if DT will ever see a penny of that breakup fee money from AT&T.  To be sure, David would be remiss to not feature the discussion on his Site.

    As far as waiting for someone to leak the “actual clause,” since no one but the contracting parties are going to ever see the terms of the Purchase/Sale Agreement, we are left with our opinions, speculation, and digesting the contemplations of  “anonymous sources”
    and M/A experts.

    In any event, payment of the $6 billion fee is now an issue.  Plus many people find it dramatic and quite interesting, will AT&T ultimately to pay the $6 billion in cash and prizes to DT. (My opinion is that it won’t.)

  • ItsMichaelNotMike

    While breakup fees are common in takeover agreements to assure the
    seller goes through with the transaction, I suspect that AT&T inserted breakup fee
    language favoring the Company in return for it paying $39 billion for a company worth less than half that.

    Matter of fact, when the broad terms of the deal were disclosed months ago, including the $6 billion breakup fee, I opined that since AT&T was paying a outrageous premium for TMOUS that AT&T insisted on terms in the Purchase/Sale Agreement making it difficult for DT to qualify for the $6 billion.

    Think about it folks.  At the time the parties were negotiating T-Mobile had nothing to bargain with, certainly not to command a $39 billion sales price. (TMOUS was hemorrhaging customers and declining in value.) Simply put, at the time the parties were hammering out the details of this sale TMOUS was NOT an attractive acquisition in anyone’s book.  In contrast, AT&T’s wireless business was thriving. Despite these facts AT&T agreed to pay DT $39 billion for TMOUS and also agreed to pay a $6 billion breakup fee should AT&T pull out of the deal.

    I find it hard to believe that AT&T would agree to these terms without making it onerous for DT to qualify for the $6 billion. The only way DT would qualify for the payment, IMO, is if AT&T cavalierly changed its mind and pulled out of the deal.  In other words, other than a flippant decision by AT&T to cancel the transaction, DT does not get the money.

    Why would DT agree to this? It’s all about leverage.  Remember my car analogy from a few weeks ago?  Well, let’s revisit that
    one again, except this time in relation to the $6 billion breakup fee. 

    When you trade in your car to buy a new one from the
    dealership, the dealership on paper will appear to give you more for your trade-in than your old car is worth, because you are buying a new car from the dealer. 

    But because you are trading in you have zero leverage on getting a discount off the retail price of the new car. The car dealer, in return for paying above market for your trade-in
    requires that you pay full retail for the new car.  That’s the price you
    pay, literally, for the dealer “over paying” for your trade-in. (I know, some of you have done that, worked both ends of the deal, as the saying goes, but most people don’t bargain for that kind of deal).

    Anyway, I submit circumstances are similar
    here.  I assume that in return for paying DT three times what TMOUS is
    worth (the car trade-in, so to speak) AT&T exacted onerous terms for TMOUS to qualify for the $6
    billion payment.  After all, AT&T was in the driver’s seat on this transaction, so it
    was calling all the shots and making the most stringent demands.  In
    contrast, did T-Mobile have anything to bargain with?  What did T-Mobile give AT&T in return
    for AT&T paying $39 billion for a $15-20 billion business, a company on the decline?   I submit that one of the concessions was that DT agreed to making it easy for AT&T to avoid making the $6 billion
    payment.

    Have to run, no spell check, sorry for errors in grammar too.