Deutsche Telecom Details New Swag From Failed AT&T Merger - HotHardware
Deutsche Telecom Details New Swag From Failed AT&T Merger

Deutsche Telecom Details New Swag From Failed AT&T Merger

The AT&T - T-Mobile merger may be off the table, but T-Mobile's parent company Deutsche Telekom is walking away from the deal with a smile on its face. The communications giant released the details of what AT&T agreed to pay for the privilege of bidding on its business, and it's an impressive set of benefits.

AT&T's $3B (approximately €2.29B) payment will reportedly be used to pay down DT's debts in other areas. What T-Mobile is getting is a large package of AWS spectrum in 128 market areas, including 12 of the top 20 ((Los Angeles, Dallas, Houston, Atlanta, Washington, Boston, San Francisco, Phoenix, San Diego, Denver, Baltimore and Seattle). As a result, DT's population coverage will increase by 21 percent, from 230 to 280M potential customers.


No word yet on whether Carly gets a raise

The two companies have also signed a roaming agreement over UMTS which DT states "As a result of the agreement with AT&T, coverage will be extended to many regions of the U.S. in which T-Mobile USA previously had neither its own high-speed mobile communications network nor the associated roaming agreements."


Merger was a bad idea, FOO!

Deutsche Telekom gives lip service to its support for the merger, claiming that "important arguments in support of the transaction have been ignored, such as the significant improvement in high-speed mobile network coverage for the U.S. market, as well as the positive employment effects," but the FCC report was both thorough and damning in its criticism of the proposed merger. While the German telecom still intends to unload T-Mobile, these agreements have substantially strengthened the network's competitive position.

The irony of the situation is that many of AT&T's arguments in favor for the merger claimed that T-Mobile wasn't actually meaningful competition and that the company wouldn't be able to maintain market share in the face of LTE rollouts from the likes of Sprint and Verizon. The success of the iPhone 4S, however, is evidence that 4G support isn't a must-have feature for consumers—at least not yet. We suspect 4G adoption will lag until battery life can be brought into line with current 3G modems. At present, activating 4G drains significantly more battery power than 3G with a correspondingly negative effect on battery life.

Between the two companies, it was AT&T, not T-Mobile, that went before Congress claiming it would refuse to build out coverage if the T-Mobile deal fell through. Regardless of whether or not the American company follows this ridiculous strategy, T-Mobile is free to invest in its own network without seeming hypocritical. Deutsche Telekom hasn't stated if its in negotiation with Verizon or Sprint, but we doubt T-Mobile will be up for acquisition again in the next few months. After investing much of a year working on the AT&T - T-Mobile deal, the FCC probably wouldn't be thrilled to be re-examining the question so soon.
0
+ -

Carly should get a raise. And the T-Mobile crew needs to figure out WTF next.

0
+ -

All that added spectrum is going to be really valuable for T-Mobile and that AT&T compensation payment will surely get Deutsche Telekom back on their feat in no time, depending on whether or not the higher-ups at AT&T are embarrassed at a failed merger and losing $5 billion dollars over it.

Anyways, good news is good news; and news that comes out of a failed merger is even better news for T-Mobile.

0
+ -

OUCH. five billion are big words, but t mobile seems pretty happy, right about now they got a significant bust in coverage service and capital if they don't merge look to them as being an up and coming tycoon.

0
+ -

I was going to comment on this yesterday, but there is just entirely to much to say, at least from what I see. I think T-Mobile made out like bandits as far as it all goes. My whole thing on this is entirely off kilter from what I have seen. I joined T-Mobile as soon as the At&t takeover was announced where as most were running for the hills http://youtu.be/M149WTrkNR8 . I knew after the details I had heard or at least I felt that it would never be approved. So I am a T-mous customer and am in a relatively good position as far as all that sits. I have also noticed as of today my connection at home is better which seems very fast to me if it had anything to do with this (it would make sense as At&t is the only tower my phone's have ever been able to detect even though the signal was relatively weak. Oh and as a side not that band I posted the link to is the very first band I ever saw live in concert (in an Arena w/Twisted sister as there opener believe it or not)!

Either way I think T-Mous did themselves a mega favor by agreeing to the whole thing!

Login or Register to Comment
Post a Comment
Username:   Password: