AT&T in $US39 billion acquisition of T-Mobile USA

Stephen Withers
Monday, 21 March 2011 08:26

IT Industry - Listed Tech

US carrier AT&T is to acquire Deutsche Telekom's T-Mobile USA operation, beefing up its 3G network and avoiding imminent spectrum exhaustion issues.

The acquisition of T-Mobile USA by AT&T will, the company claims, improve network capacity and quality for AT&T and T-Mobile customers. It will also provide an upgrade path to LTE for T-Mobile customers.

The deal is valued at $US39 billion, including a $US25 billion cash payments. It will result in Deutsche Telekom owning around 8% of AT&T and gaining an AT&T board seat.

"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," said Randall Stephenson, AT&T chairman and CEO.

"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."

Possibly in an attempt to ward off concerns about reduced competition in the mobile market, AT&T has committed to an expansion of its LTE rollout plans to cover an additional 46.5 million people and 3.1 million square kilometres (1.2 million square miles). The AT&T LTE network would then cover 95% of the US population.

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