Breaking: AT&T (T) to buy T-Mobile USA from Deutsche Telecom (DTEGY.PK) for $39B in cash and...


Breaking: AT&T (T) to buy T-Mobile USA from Deutsche Telecom (DTEGY.PK) for $39B in cash and stock. Noting the cut-throat nature of the U.S. telecom market, AT&T says the deal "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." (PR)
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Comments (18)
  • Joe Morgan
    , contributor
    Comments (1607) | Send Message
     
    I think this deal is a bit pricey, but let's see if the AT&T management can develop a high ROA....
    20 Mar 2011, 03:22 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2849) | Send Message
     
    So much for Sprint buying T-Mobile...The new ATT wireless is going to be a huge company.
    20 Mar 2011, 03:55 PM Reply Like
  • dividend_growth
    , contributor
    Comments (2895) | Send Message
     
    That means more debt, more cost cuts, more restructuring, more bonuses for the executives, and more disgruntled customers at AT&T.

     

    It also means Sprint may get bought by Verizon. Sprint and Verizon also fall into the CDMA camp.
    20 Mar 2011, 04:07 PM Reply Like
  • D_Virginia
    , contributor
    Comments (2278) | Send Message
     
    I wonder when Verizon will buy Sprint.
    20 Mar 2011, 04:08 PM Reply Like
  • kd3
    , contributor
    Comments (2) | Send Message
     
    What was not possible could be now be possible. The buyout of Sprint by Verizon.
    20 Mar 2011, 04:29 PM Reply Like
  • ebworthen
    , contributor
    Comments (2799) | Send Message
     
    AT&T will squeek by with the T-Mobile purchase because they got the buyout first; and the FTC will say no to a Verizon buyout of Sprint over "monopoly" concerns.

     

    Maybe someone will start a mobile MCI?

     

    This would all be funny if it weren't sad.
    20 Mar 2011, 06:18 PM Reply Like
  • jpau
    , contributor
    Comments (904) | Send Message
     
    Unless Sprint goes bankrupt when Clearwire runs out of money
    20 Mar 2011, 06:55 PM Reply Like
  • kd3
    , contributor
    Comments (2) | Send Message
     
    N/A
    20 Mar 2011, 04:38 PM Reply Like
  • Jake Huneycutt
    , contributor
    Comments (1419) | Send Message
     
    The press release is interesting. It sounds like it's aimed more at US regulators than any other group.
    20 Mar 2011, 05:12 PM Reply Like
  • ebworthen
    , contributor
    Comments (2799) | Send Message
     
    $39 Billion is a lot to pay for bandwidth.

     

    This also means I have to dump my T-Mobile phone because I will never again do business with AT&T (going on 15 years now).

     

    If Comcast were smart they would have bought T-Moblie instead of NBC Universal, they are driving in the wrong direction down a cul-de-sac.

     

    Before long, the Millenials will expect (and pay out the nose) for all content to be through their smart phone - cable T.V. is a dying market.

     

    The youth are being well trained to have a subscription pay tether about their necks for content that used to be free; oh, and BTW, they get to "choose their ad experience".

     

    Pretty soon there won't be anyone left alive who knows that there was no income tax or Federal Reserve before 1913, or that you got T.V. for free - you just had to sit through the commercials, or that cable T.V. that you paid for did not have any commercials.

     

    I wonder how long it will be before you have to watch a splash screen advertisement on your smart phone before you can answer a call or txt?
    20 Mar 2011, 06:14 PM Reply Like
  • Joe Morgan
    , contributor
    Comments (1607) | Send Message
     
    Ebworthen is correct, ads would be the norm in our smart phones as the cable/satellite market dries up slowly.....(they need to replace revenue loss).
    20 Mar 2011, 06:22 PM Reply Like
  • jpau
    , contributor
    Comments (904) | Send Message
     
    Isn't T-Mobile bleeding subscribers?
    20 Mar 2011, 06:54 PM Reply Like
  • Apple Diner
    , contributor
    Comments (306) | Send Message
     
    Yes, but they have the additional spectrum AT&T craves... er, needs.
    20 Mar 2011, 07:44 PM Reply Like
  • jstratt
    , contributor
    Comments (3570) | Send Message
     
    I hope ATT can pull great value out of T-Mobile because they are paying a huge price.
    20 Mar 2011, 07:21 PM Reply Like
  • Apple Diner
    , contributor
    Comments (306) | Send Message
     
    It's the last hurrah for "traditional" cell tower service providers. It won't be long before WiFi is ubiquitous, and don't forget about the TV spectrum "white space" that should be opening up soon for providers to use in inventive new ways.
    20 Mar 2011, 07:47 PM Reply Like
  • Bozerdog
    , contributor
    Comments (463) | Send Message
     
    the iphone/pad won, more data driven systems will be here soon, band-with and information demands warrant this move.

     

    analogous to a war in iraq or dropping bombs in libya. It's a steep price but the demand is there...

     

    lower taxes, cut public education, relax regulation, drill more
    20 Mar 2011, 09:10 PM Reply Like
  • ebworthen
    , contributor
    Comments (2799) | Send Message
     
    Truth is, the cell market is drying up except for those with the disposable income to sustain it.

     

    As things get worse, $60-$100 a month for cell phone or food/fuel will be an easy choice, this is a harbinger.
    21 Mar 2011, 02:01 AM Reply Like
  • kmi
    , contributor
    Comments (4526) | Send Message
     
    T-Mobile subscribers needing a fair price and access to global GSM networks are screwed.

     

    AT&T runs its network very differently (read: they block everything and bloat up their phones in a way TMob doesn't) and a lot of the benefits of being with T-Mobile will evaporate with no alternative to run to.
    21 Mar 2011, 10:40 AM Reply Like
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