AT&T to Buy T-Mobile USA from Deutsche Telekom
AT&T Wireless to Acquire T-Mobile USA for $39 Billion
AT&T Wireless is set to buy T-Mobile USA from German telecom giant Deutche Telekom. The $39 billion deal would make AT&T Wireless the largest network in America, pushing Verizon Wireless down to the number-two spot.
The deal would go through next year, pending federal approval. This means that Sprint becomes a distant third-place carrier, and would have to start successful acquisitions of its own in order to grow.
Choice Erodes in US GSM Market
It also means that American GSM customers will have their carrier choice reduced by 50%. More to the point, AT&T becomes the only national GSM carrier. What do you think this means for pricing? (Hint: they'll go up)
iPhone for T-Mobile USA?
If the iPhone will be introduced to T-Mobile, it won't be soon. The iPhone 4 is not compatible with T-Mobile USA's current network.
In the meantime, T-Mobile is still an independent company.
“We studied this thing extensively over the last few months and we’re very confident it will be approved,” Randall Stephenson, AT&T chairman and chief executive officer, said in an interview. “Most local markets have a choice between five carriers, so the space will remain fiercely competitive.”