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Tag: t-mobile-usa

  • Sprint Opposes Proposed AT&T Acquisition of T-Mobile USA

    Sprint has announced its opposition to AT&T’s proposed $39 billion takeover of T-Mobile USA. According to Sprint, the transaction, which requires the approval of the Department of Justice and the Federal Communications Commission, and will likely spark a host of hearings in the U.S. Congress, "would reverse nearly three decades of actions by the U.S. government and the courts that modernized and opened U.S. communications markets to competition."

    "The wireless industry has sparked unprecedented levels of competition, innovation, job creation and investment for the American economy, all of which could be undone by this transaction," as the company claims.

    AT&T and Verizon are already by far the largest wireless providers. If approved, the proposed acquisition would create a combined company that would be almost three times the size of Sprint in terms of wireless revenue and would entrench AT&T’s and Verizon’s duopoly control over the wireless market. According to Sprint, the wireless industry moving forward would be dominated overwhelmingly by two vertically integrated companies with unprecedented control over the U.S. wireless post-paid market, as well as the availability and price of key inputs, such as backhaul and access needed by other wireless companies to compete.

    “Sprint urges the United States government to block this anti-competitive acquisition,” said Vonya McCann, senior vice president, Government Affairs at Sprint.

    “This transaction will harm consumers and harm competition at a time when this country can least afford it. As the first national carrier to roll out 4G services and handsets and the carrier that brought simple unlimited pricing to the marketplace, Sprint stands ready to compete in a truly dynamic marketplace. So on behalf of our customers, our industry and our country, Sprint will fight this attempt by AT&T to undo the progress of the past 25 years and create a new Ma Bell duopoly.”

  • AT&T to Acquire T-Mobile USA from Deutsche Telekom

    AT&T and Deutsche Telekom announced that they have entered into a definitive agreement under which AT&T will acquire T-Mobile USA  in a cash-and-stock transaction currently valued at approximately $39 billion. The agreement has been approved by the Boards of Directors of both companies.

    According to the companies, the acquisition provides "an optimal combination of network assets to add capacity sooner than any alternative, and it provides an opportunity to improve network quality in the near term for both companies’ customers." The companies also said that the acquisition provides "a fast, efficient and certain" solution to the impending exhaustion of wireless spectrum in some markets, which limits both companies’ ability to "meet the ongoing explosive demand for mobile broadband."

    With this transaction, AT&T commits to a significant expansion of robust 4G LTE deployment to 95 percent of the U.S. population to reach an additional 46.5 million Americans beyond current plans – including rural communities and small towns. In terms of area covered, the transaction enables 4G LTE deployment to an additional 1.2 million square miles, equivalent to 4.5 times the size of the state of Texas. T-Mobile USA does not have a clear path to delivering LTE.

    According to AT&T and T-Mobile, their customers will see service improvements – including improved voice quality – as a result of additional spectrum, increased cell tower density and broader network infrastructure.

    The acquisition will increase AT&T’s infrastructure investment in the U.S. by more than $8 billion over seven years.

    "This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation’s future," said Randall Stephenson, AT&T Chairman and CEO. "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."

    Stephenson continued, "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. 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."

    Deutsche Telekom Chairman and CEO René Obermann said, "After evaluating strategic options for T-Mobile USA, I am confident that AT&T is the best partner for our customers, shareholders and the mobile broadband ecosystem. Our common network technology makes this a logical combination and provides an efficient path to gaining the spectrum and network assets needed to provide T-Mobile customers with 4G LTE and the best devices. Also, the transaction returns significant value to Deutsche Telekom shareholders and allows us to retain exposure to the U.S. market."

    As part of the transaction, Deutsche Telekom will receive an equity stake in AT&T that, based on the terms of the agreement, would give Deutsche Telekom an ownership interest in AT&T of approximately 8 percent. A Deutsche Telekom representative will join the AT&T Board of Directors.

    The combined company will continue to have a strong employee and operations base in the Seattle area.

    The $39 billion purchase price will include a cash payment of $25 billion with the balance to be paid using AT&T common stock, subject to adjustment. AT&T has the right to increase the cash portion of the purchase price by up to $4.2 billion with a corresponding reduction in the stock component, so long as Deutsche Telekom receives at least a 5 percent equity ownership interest in AT&T.

  • Microsoft Unveils Windows Phone 7 Global Portfolio

    Microsoft announced nine new Windows Phone 7 handsets that will be available this October and November from over 60 mobile operators in 30 countries in Europe, North America and Asia Pacific.

    Windows Phone 7 will be available in a variety of form factors from device-makers such as Dell, HTC Corp., LG and Samsung, and from mobile operators including América Móvil, AT&T, Deutsche Telekom AG, Movistar, O2, Orange, SFR, SingTel, Telstra, TELUS, T-Mobile USA and Vodafone.

    All Windows Phone 7 phones will include the Snapdragon processor from Qualcomm. A broad selection of phones will begin shipping in October 2010 with more arriving in 2011, including phones from Sprint and Verizon Wireless.

    The following devices will come to North America, Europe and Asia Pacific in the holiday 2010 timeframe.

    In North America:

    AT&T
    • HTC Surround, United States
    • Samsung Focus, United States
    • LG Quantum, United States

    T-Mobile USA
    • HTC HD7, United States
    • Dell Venue Pro, United States

    TELUS
    • HTC 7 Surround, Canada
    • LG Optimus 7, Canada

    América Móvil
    • LG Optimus 7, Mexico

    In Europe:

    O2
    • HTC HD7, United Kingdom, Germany

    Orange
    • HTC 7 Mozart, including France, United Kingdom
    • Samsung OMNIA 7, including France, United Kingdom

    SFR
    • HTC 7 Trophy, France
    • Samsung OMNIA 7, France

    Movistar
    • LG Optimus 7, Spain
    • HTC HD7, Spain
    • Samsung OMNIA 7, Spain

    Deutsche Telekom AG
    • HTC 7 Mozart, Germany
    • Samsung OMNIA 7, Germany

    Vodafone
    • HTC 7 Trophy, including Germany, Spain, United Kingdom
    • LG Optimus 7, including Germany, Italy, Spain, United Kingdom

    In Asia Pacific:

    SingTel
    • HTC HD 7, Singapore
    • LG Optimus 7, Singapore

    Telstra
    • HTC 7 Mozart, Australia
    • LG Optimus 7Q, Australia

    Vodafone
    • HTC 7 Trophy, including Australia

    “We have a beautiful lineup in this first wave of Windows Phone 7 handsets,” said Steve Ballmer, chief executive officer at Microsoft. “Microsoft and its partners are delivering a different kind of mobile phone and experience — one that makes everyday tasks faster by getting more done in fewer steps and providing timely information in a ‘glance and go’ format.”