The Zack Posted March 20, 2011 T-Mobile USA's 33 millions customers that included 100,000 Somalis (educated estimate) will now go to AT&T LOL AT&T To Buy T-Mobile For $39 Billion NEW YORK — AT&T Inc. said Sunday it will buy T-Mobile USA from Deutsche Telekom AG in a cash-and-stock deal valued at $39 billion, becoming the largest cellphone company in the U.S. The deal would reduce the number of wireless carriers with national coverage from four to three, and is sure to face close regulatory scrutiny. It also removes a potential partner for Sprint Nextel Corp., the struggling No. 3 carrier, which had reportedly been in talks to combine with T-Mobile USA. AT&T will pay about $25 billion in cash and the balance in company stock in a deal that gives Deutsche Telekom, Germany's largest phone company, about an 8 percent equity stake in AT&T. Deutsche Telekom will get one seat on AT&T's board. Like Sprint, T-Mobile has been struggling to compete with much larger rivals AT&T and Verizon Wireless, and its revenue has been largely flat for three years. Bellevue, Wash.-based T-Mobile USA's subscriber count has stalled at just under 34 million, though it posts consistent profits. There have been reports over the last year that Deutsche Telekom has been looking at radical moves to let it get more value out of its U.S. holding, including a possible combination with a U.S. partner. Read the rest at Huffington Post Quote Share this post Link to post Share on other sites
The Zack Posted March 20, 2011 The reason I say bye bye T-Mobile USA is the prices will go up when AT&T takes over the popular Maryooley friendly company. Of course they won't be able to increase prices immediately, they will have let customers grandfather their current plans but they will require customers to change to AT&T plans when subscribers want to upgrade their phones with discounted 2-yr/1-yr pricing. So one more time, bye bye T-Mobile USA. I am glad I am with VZW. Quote Share this post Link to post Share on other sites
Naxar Nugaaleed Posted March 20, 2011 the nightmare of at&t data charges, I hope they don't approve this Quote Share this post Link to post Share on other sites
The Zack Posted March 20, 2011 I hope they don't as well but chances are they will approve it. They are looking it from 'American" perspective. We shall see what way these goes to. Quote Share this post Link to post Share on other sites
General Duke Posted March 20, 2011 Good news, I am an AT&T subscriber and now all my relatives will be on the same carrier. Though it won't effect my plan one bit. Quote Share this post Link to post Share on other sites
Complete Posted March 20, 2011 I just got word of this. Ridiculous if you ask me. Verizon is going to become my new carrier. By the way, I test ran the HTC Thunderbolt. That piece is a beast. It's just the right size. It's not as bulky as the Droid X though that device is amazing itself. Quote Share this post Link to post Share on other sites
Jacpher Posted March 20, 2011 Less competition and more corporate control and on track to monopoly. I hope someone will challenge it in the courts but given axwaasha jira, I think AT&T will get its way. Why does a good company need to sell its customers to a bad one with the most dropped calls and terrible service? Quote Share this post Link to post Share on other sites
The Zack Posted March 20, 2011 Vans, Yes the thunderbolt is awesome, its super fast too when u r on LTE. Jacphar, I hope they don't approve it, too. AT&T already has 100 million customers, if they get 30 million more they will pretty much be serving half of the American people. Quote Share this post Link to post Share on other sites
Taleexi Posted March 20, 2011 It appears the regulatory body will approve the deal but I assure you this industry is hard to monopolize therefore nothing to be alarmed. Skype and others will fill the gap and other technologies will emerge as well... I would worry more if Shell, BP, ExxonMobil and other major oil companies merge .... ATT has to still maximize the portfolios of its shareholder but it has to stay competitive and profitable at the same time. The end consumer will dictate how much the consumers are willing to pay ... Quote Share this post Link to post Share on other sites
The Zack Posted March 21, 2011 Taleex, When this kind of huge take over in the cellular phone industry occurs, the Federal Communications Commission creates what is called Trust Areas. This means they forces the taking-over company to sell customers in specific areas (areas which will end up having one provider only), they do this to avoid monopoly in the market. This has happened recently when Verizon Wireless bought Altell. But it is a fact that consumers will be affected negatively with the loss of T-Mobile USA. I am not sure if you are ware of this but the pricings of the T-Mobile USA service is much much cheaper than that of AT&T. AT&T will not be able to keep giving the less expensive service that T-Mobile was giving so it is not good for the consumers. As far as Skype filling the gap, not sure where you are going with that. Skype is a VOIP company that provides service to those who already have access to some kind of data service. Quote Share this post Link to post Share on other sites
The Zack Posted March 21, 2011 USA Today provides good summary... Q: Will rates go up for the lower-cost T-Mobile service's customers? A: That can't be determined at this early point in the transaction, AT&T says. Q: If I'm a T-Mobile customer, will I have to switch phones to keep my service under the new AT&T-T-Mobile? A: As soon as the deal closes — if approved by the Department of Justice and Federal Communications Commission— AT&T will likely move to get T-Mobile subscribers onto AT&T phones. What that means is that all of the T-Mobile customers using 3G phones will need to switch to AT&T phones at that time. It is also possible that AT&T would shoulder much, if not all, of that cost, though there could be some sort of small activation fee. T-Mobile phones that operate on 2G technology will not need to be replaced by AT&T phones in order to work on the network. * STORY: AT&T to buy T-Mobile USA for $39 billion Q: Will T-Mobile customers have access to different phone options, such as the iPhone? A: AT&T has a broader range of high-end phones than what is offered from T-Mobile. Its portfolio of phones includes more Windows-based smartphones, more Android phones and, of course, the iPhone. Customers will likely have access to many of these phones as soon as the deal closes. Q: What will this mean for high-speed mobile broadband service? A: There's a good chance that service could improve both in quality and service area reach, including — down the road — better access for rural communities not currently serviced by landline-based broadband. Q: Will prices overall come down for wireless subscribers to mobile broadband services? A: The costs of mobile broadband won't likely come down "as fast as consumers would like," according to technology research firm Forrester. That's because, assuming the merger goes through, AT&T and Verizon combined would hold nearly 75% of U.S. wireless subscribers, the researcher says. Q: Will T-Mobile customers get access to some of the bundled services of AT&T? A: Yes, provided they live in a region that's not so rural and far away that it doesn't have fixed-line access to services. Q: What does the merger mean for the expansion of so-called 4G LTE services? A: The merger will accelerate the combined companies' planned implementation of such next-generation services, enabling them to offer it to 95% of U.S. households. Q: What does the deal mean for cable operators trying to compete? A: "It's also bad news for cable operators, whose incipient mobility products will suffer in comparison to what AT&T and Verizon can offer," says Forrester. Q: And what about the effect on Sprint? A: That's unclear. Lawmakers already are asking questions about whether an AT&T-T-Mobile deal would be good for consumers and for competition among wireless companies. Such a telecommunications combination is "clearly troublesome for Sprint and other smaller mobile competitors," Forrester says. But big telecom mergers are not unprecedented. AT&T bought Cingular. Sprint bought Nextel. Quote Share this post Link to post Share on other sites
The Zack Posted March 21, 2011 This means Verizon might buy Sprint PCS... Holly cow! I can see America having only two carriers. Quote Share this post Link to post Share on other sites
Complete Posted March 21, 2011 Sprint not too long ago bought out Nextel and merged its customers on over to Sprint. I hope they don't change the data plan. T-Mobile offers unlimited data surfing while AT&T limits to only 2GB for the same price as the unlimited. Dang this is going to be a bummer! Quote Share this post Link to post Share on other sites
Jacpher Posted March 21, 2011 I can't image all the little companies oo hoos yimaada Tmobile losing business. Tmobile is the only company with the best voice plans out there. This deal is gonna take at least a year and I think ATT will have to honor whatever plan tmobile subscribers had before the merge. But they'll sign you into a new contract should you upgrade phones. That's what happened to me when ATT took over Cingular. I switched to Tmobile and now back again? Sucks to lose your plans. I can tell you it's a big loss for the consumer in the US. With Tmobile out of the picture, ATT dictates both voice plans and phone choices available in GSM carrier network. ATT gains Android market and retains Apple. HTC & Google now have fewer companies to make products for. Remember Tmobile was the first to bring Android to the market. This move by ATT just changed the whole Google vs Apple competition. Quote Share this post Link to post Share on other sites
Faarax-Brawn Posted March 21, 2011 Great freakin news!!! Quote Share this post Link to post Share on other sites
