AT&T To Buy T-Mobile For $39 Billion

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Can we get those t-mobile rates tho?

As anyone who has read a tech blog in the past few years will know, AT&T has been under attack for not being able to match the network capacity of larger rival Verizon. And when they won the majority of the bids for the open spectrum in 2008, Verizon also had a clear path to the future. Now AT&T is taking another path: buying T-Mobile.

Here’s the release with the details of the deal. AT&T will pay roughly $39 billion to Deutsche Telekom for T-Mobile USA. Deutsche Telekom will also get a roughly 8 percent ownership stake in AT&T as a result of the deal. And a Deutsche Telekom executive will join AT&T’s Board.

With the deal, AT&T will get access to T-Mobile’s roughly 35 million customers. If the two fully merge, this will push AT&T far past Verizon in terms of subscriber numbers. Currently, Verizon has about 100 million subscribers in the U.S., while AT&T has about 95 million. This deal will also leave Sprint as the lone large outsider, with about 50 million subscribers.

The agreement has already been approved by both Boards, but obviously will have to pass government scrutiny.

Here are AT&T CEO Randall Stephenson’s key quotes from the release:

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

Read More: http://goo.gl/TbNVJ

(Huffington Post)

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Medicine & Music are my two loves