AT&T to Buy T-Mobile $39 Billion: More Coverage Less Competition

There’s major news today in the telecommunications market as it has just been announced that AT&T is to buy T-Mobile USA from Deutsche Telekom, in a deal worth $39 billion. AT&T’s 4G network would grow by 1.2 million square miles if the deal is approved and 46.5 million more people in the US would have AT&T LTE availability.

The purchase is made up of $25 billion cash with another $14 billion in AT&T stock and AT&T chief executive, Randall Stephenson, said, “This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation’s future,” according to Leigh Remizowski over on CNN.

This would result in Deutsche Telekom having an 8% stake in AT&T and both sets of directors have approved the move. Vlad Savov over on Engadget also reports that AT&T’s customer base would grow to a whopping 130 million but of course there will be regulatory proceedings, which could take around a year, before the deal can be closed. The joint press release is also available on the Engadget link above.

What are your thoughts on the planned acquisition of T-Mobile USA by giant carrier AT&T which would make AT&T the largest wireless provider in the US? Is the expansion in coverage worth the price of having less competition in the market? Let us have your comments on this by using the box below.

  • http://www.successwithsocialmediaonline.com Jacob James

    Well mainly less competition would is more profit, so its only natural the it will all be worthwhile the wait for the profit to come later. Though companies like those are rarely to have problems because they have analyzed the probable outcome of their decisions.