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CNN Money: AT&T buys T-Mobile USA for $39B


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AT&T-Mobile: AT&T buys T-Mobile USA for $39B

Posted by Seth Weintraub

March 20, 2011 3:05 PM

AT&T announced that the new entity would be the biggest in the US with 130 million subscribers

The national mobile carrier choices for US consumers will decrease by one if the purchase of Deutsche Telecom AG's U.S. T-Mobile unit by AT&T (T) passes regulatory hurdles. The $39 billion deal, announced ahead of a major wireless conference in Orlando tomorrow, would create the nation's largest wireless carrier and drop the big US mobile carriers to just three.

Source; CNN Money

Author: Seth Weintraub

Full article click here:

http://tech.fortune.cnn.com/2011/03/20/att-mobile-att-buys-t-mobile-usa/?hpt=T2

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What do you guys think? I've heard T-Mobile's network sucks, so we will have one large ****ty network. However, I am afraid this may trigger a Verizon/Sprint merger and significantly decrease the amount of choices in the market.

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Had T Mobile for years now. Never had a problem with their coverage. And in some spots have even gotten better coverage than Verizon (who is considered the best.)

But anyways, as I understand it 1) this isn't going to be completed for at least 12 months and 2) nothing is really going to change outside of AT&T getting the money. Even read that this could improve coverage (one super coverage strength/area)

But I'm so excited that maybe I can get the iPhone now. Oh wait, no I'm not. Ooooverraaated! *clap clap clapclapclap* Ooooverraa...

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Had T Mobile for years now. Never had a problem with their coverage. And in some spots have even gotten better coverage than Verizon (who is considered the best.)

But anyways, as I understand it 1) this isn't going to be completed for at least 12 months and 2) nothing is really going to change outside of AT&T getting the money. Even read that this could improve coverage (one super coverage strength/area)

But I'm so excited that maybe I can get the iPhone now. Oh wait, no I'm not. Ooooverraaated! *clap clap clapclapclap* Ooooverraa...

Don't say that! You're gonna make all the Steve Jobs cultists mad. :ols:

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Let's see :

Sprint buys Nextel

Verizon buys Alltel

AT&T buys Cingular.

AT&T/Cingular then buy T-Mobile.

What's next ?

Soon verizon will own them all, and then all of us will be up :pooh: 's creek

this is terrible. AT&T blows.

This will actually improve AT&T's service.

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It really shows the times we are in. Wasn't Bell broken up for becoming a near monopoly on land-line phones? Yet with the same rules and laws in place today (at least I think so) there is no one sounding alarms that mobile/cell carriers are basically doing the same thing.

A decade or so ago, there was at least 10 major companies to choose from, an every time one of them has been bought up, it has just translated into higher prices, and worse customer service.

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So is this the trade off: A few larger companies with higher concentration of towers and better coverage vs. many more smaller companies offering more competitive pricing?

Is there a way to have both or are we just looking for a sweet spot where we accept less competition in exchange for better coverage? If there is a trade off, I would have to think 3 major carriers is the minimum you'd need to offer legitimate competition.

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T-Mobile's network definitely does not suck. This is terrible news.

Agreed Nelson. I've been with Tmobile for 10 years now, never had a problem with their coverage and their customer service has always been excellent to me. This definitely gives me pause and will make me consider other options before re-upping with them.

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Look, this is for all cellphone users. When you say, "BRAND X's coverage doesn't suck. It works perfect in my area" you are using your personal experience to advertise for everyone. If you have coverage from T-Mobile, and it works great for you, then you live or work in an urban area more than likely. T-Mobile has a smaller overall coverage footprint than AT&T and Verizon. I had T-Mobile and when I was near Fredericksburg I received full signal at all times. Drive 15 minutes south of Fredericksburg and signal was as common as a Tea Partier who supports Obama.

What is good about this is that AT&T will increase the number of towers they can use for 3G services immediately. What is bad is that this now leaves ONE cellular provider who runs on the GSM network, so the free-market choices of carrier are gone. Tmobile users get the iPhone, provided they weren't using one that was unlocked in the first place. AT&T users will get access too...The G2 I guess? Who cares anyways as T-Mo never had great phones.

AT&T is going to cannabilize the T-Mobile 1700mhz spectrum to run as their "4G" service until carriers actually move on to real 4G cellular connections. Everything being touted as "4G" now is bullcrap, but that is in another thread.

---------- Post added March-21st-2011 at 09:12 AM ----------

Just read this

http://www.cnet.com/8301-17918_1-20045246-85.html?tag=cnetRiver

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The main issue with T-Mobile's network is that they were behind everyone else in rolling out 3G. My understanding is it had to do when they were awarded the spectrum. As for reception in general, I never had a problem getting reception whereever I was and rarely got dropouts. Compare that to a friend of mine with an iPhone and AT&T and he'd drop off three times in the same call. An extreme example, maybe, but that has never happened to me on T-Mobile. The 3G problem and the lackluster selection of phones probably doomed T-Mobile to 4th place in the US. DT, like many european companies, never was able to figure out the US market. Course, considering the US telecommunications industry is ****ed, this isn't a shock. (What other industry would you be selecting a network based on the device you'd be accessing the network with? It is all ass backwards.)

I joined T-Mobile because of their rep for great customer service, good prices, and a lot of freedom as to what you could do on their network. I have a Nokia N900 and a $10 data plan and it is pretty good, especially with T-Mobile's "3.5G" service. Somehow, I doubt that would last under AT&T. This all sucks as far as I'm concened.

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This will answer the age old question "suck + suck = ?"

In 5 years we'll be down to 2 carriers. The government will decide that the barriers to entry are too great, and that the market is broken. They will require that the big 2 allow their network to be shared by startups. Wait. There might be a manual somewhere on this

......

---------- Post added March-21st-2011 at 10:23 AM ----------

This will answer the age old question "suck + suck = ?"

In 5 years we'll be down to 2 carriers. The government will decide that the barriers to entry are too great, and that the market is broken. They will require that the big 2 allow their network to be shared by startups. Wait. There might be a manual somewhere on this

......

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Look, this is for all cellphone users. When you say, "BRAND X's coverage doesn't suck. It works perfect in my area" you are using your personal experience to advertise for everyone. If you have coverage from T-Mobile, and it works great for you, then you live or work in an urban area more than likely. T-Mobile has a smaller overall coverage footprint than AT&T and Verizon. I had T-Mobile and when I was near Fredericksburg I received full signal at all times. Drive 15 minutes south of Fredericksburg and signal was as common as a Tea Partier who supports Obama.

What is good about this is that AT&T will increase the number of towers they can use for 3G services immediately. What is bad is that this now leaves ONE cellular provider who runs on the GSM network, so the free-market choices of carrier are gone. Tmobile users get the iPhone, provided they weren't using one that was unlocked in the first place. AT&T users will get access too...The G2 I guess? Who cares anyways as T-Mo never had great phones.

AT&T is going to cannabilize the T-Mobile 1700mhz spectrum to run as their "4G" service until carriers actually move on to real 4G cellular connections. Everything being touted as "4G" now is bullcrap, but that is in another thread.

I went to school in a small hick town in PA and never had connection problems. Two of my roommates, who had AT&T, had constant connection problems. One of them actually switched to T-Mobile because they knew I never had trouble.

And T-Moblie does have some good phones. Just not as many as others.

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I went to school in a small hick town in PA and never had connection problems. Two of my roommates, who had AT&T, had constant connection problems. One of them actually switched to T-Mobile because they knew I never had trouble.

And T-Moblie does have some good phones. Just not as many as others.

I live in rural Spotsylvania and never have connection issues with AT&T, but with T-Mo I never had connection. It goes both ways.

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My nephew and my spoiled Princess are bent out of shape worrying about potentially losing their $50 a month simply-mobile and be come stuck in a 2 year plan for 180 dollars per month.

No chance of that unless you change plans. Wireless companies can't force you to change your plans. The only way that is going to happen is if you want an AT&T phone.

At least for the next year there will be nothing to worry about, because it will take that long for the merger to be approved.

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  • 5 months later...

http://www.cbsnews.com/stories/2011/08/31/business/main20099789.shtml

Feds sue to block AT&T deal to buy T-Mobile

August 31, 2011 11:12 AM

(CBS/AP) WASHINGTON - The Justice Department filed suit Wednesday to block AT&T's $39 billion deal to buy T-Mobile USA on grounds that it would raise prices for consumers.

The government contends that the acquisition of the No. 4 wireless carrier in the country by No. 2 AT&T would reduce competition and thus lead to price increases.

At a news conference, Deputy Attorney General James Cole said the combination would result in "tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for mobile wireless services."

The lawsuit seeks to ensure that everyone can continue to receive the benefits of competition, said Cole.

AT&T will likely challenge the government's complaint and competitor's like Sprint may chime in with the court as well, notes CBS Radio News legal analyst Andrew Cohen.

"Things will move fast at first as the parties fight over whether a federal judge should initially block the move. If it is blocked we'll either see the deal withdrawn, or restructed to satisfy the feds, or we'll see a long, drawn-out court case," Cohen said.

Four nationwide providers account for more than 90 percent of mobile wireless connections — AT&T, T-Mobile, Sprint and Verizon.

T-Mobile has been an important source of competition, including through innovation and quality enhancements such as the roll-out of the first nationwide high-speed data network, Sharis Pozen, acting chief of Justice's antitrust division, said at the news conference.

Mobile wireless telecom services play a critical role, with more than 300 million smart phones, data cards, tablets and other mobile wireless devices.

AT&T shares plunged 5.1 percent after lawsuit was announced. Shares of rival Sprint Nextel Corp. rose 4.8 percent.

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