AT&T to buy T-Mobile USA

Bickendan · Mar 24, 2011

Yeah, glad I'm on Verizon.

KIRK1ADM · Mar 24, 2011

I have been happiest on Verizon.

The Exception · Mar 24, 2011

EDIT: Derp

Scott Hamilton Robert E Ron Paul Lee · Mar 24, 2011

The Defender said: ↑

Chaos Descending said: ↑

Any place in which I am is inherently more important to me than any place in which I am not, ergo, Michigan's cellular infrastructure is actually less than meaningless to me.

There is a Sprint tower 250 yards from my house, but no reliable Sprint service. There is an AT&T tower over 750 yards from my house, yet AT&T's service is robust.

Take that as you will.
Click to expand...

So in other words, it goes both ways, and since I wasn't talking to you and in fact you hadn't even posted in this thread, everything you said was pretty much irrelevant.
Click to expand...

Uh, he started the thread and and has posted afte rhe started it. :|

The Exception · Mar 24, 2011

apostle83 said: ↑

The Defender said: ↑

Chaos Descending said: ↑

Any place in which I am is inherently more important to me than any place in which I am not, ergo, Michigan's cellular infrastructure is actually less than meaningless to me.

There is a Sprint tower 250 yards from my house, but no reliable Sprint service. There is an AT&T tower over 750 yards from my house, yet AT&T's service is robust.

Take that as you will.
Click to expand...

So in other words, it goes both ways, and since I wasn't talking to you and in fact you hadn't even posted in this thread, everything you said was pretty much irrelevant.
Click to expand...

Uh, he started the thread and and has posted afte rhe started it. :|

Click to expand...

So you're right, the Topic Review in Advanced Mode doesn't show that far back. But it still is irrelevant as it cuts both ways. How good T-Mobile and AT&T is in his area is just as useless to me and doesn't change the fact that I prefer Sprint.

KIRK1ADM · Mar 24, 2011

The Defender said: ↑

apostle83 said: ↑

The Defender said: ↑

Chaos Descending said: ↑

Any place in which I am is inherently more important to me than any place in which I am not, ergo, Michigan's cellular infrastructure is actually less than meaningless to me.

There is a Sprint tower 250 yards from my house, but no reliable Sprint service. There is an AT&T tower over 750 yards from my house, yet AT&T's service is robust.

Take that as you will.
Click to expand...

So in other words, it goes both ways, and since I wasn't talking to you and in fact you hadn't even posted in this thread, everything you said was pretty much irrelevant.
Click to expand...

Uh, he started the thread and and has posted afte rhe started it. :|

Click to expand...

So you're right, the Topic Review in Advanced Mode doesn't show that far back. But it still is irrelevant as it cuts both ways. How good T-Mobile and AT&T is in his area is just as useless to me and doesn't change the fact that I prefer Sprint.
Click to expand...

Sean the Puritan · Mar 24, 2011

vandygoddess · Mar 24, 2011

This makes me sad. I have T-Mobile and have been very happy with it for like 6 years.

Tuckerfan · Sep 1, 2011

The Merger has hit a bit of a snag.

US government files to block proposed AT&T / T-Mobile merger (update: companies respond)

You heard right. Bloomberg is reporting that the United States government (!) just filed court papers in Washington, D.C. to block the much ballyhooed tie-up between AT&T and T-Mobile USA. Oddly enough, T-Mobile and AT&T promised this morning that a total of 5,000 jobs would be hand delivered to the US if the two telcos were allowed to become one, but it'll take a heck of a lot more convincing now. For what it's worth, this doesn't mean that the deal is or isn't happening -- it's just another step in the process -- but it most certainly doesn't bode well for proponents. Nor for AT&T's share price.

According to the report, the Justice Department feels that the deal would "substantially lessen competition" in the wireless space. In fact, it boldly stated the following: "AT&T's elimination of T-Mobile as an independent, low-priced rival would remove a significant competitive force from the market." If things end up falling apart, it's important to remember that AT&T would be forced to pay Deutsche Telekom $3 billion as a break-up fee, which ought to make Tiger Woods' misfortunes look like an outright bargain.

Update: Full press release is now embedded after the break, and meanwhile, Federal Communications Commission Chairman Julius Genachowski has issued the following public statement: "Although our process is not complete, the record before this agency also raises serious concerns about the impact of the proposed transaction on competition."

Update 2: Wayne Watts, AT&T Senior Executive Vice President and General Counsel, issued the following statement (seen after the break)...

[Thanks to everyone who sent this in]

"We are surprised and disappointed by today's action, particularly since we have met repeatedly with the Department of Justice and there was no indication from the DOJ that this action was being contemplated. We plan to ask for an expedited hearing so the enormous benefits of this merger can be fully reviewed. The DOJ has the burden of proving alleged anti-competitive affects and we intend to vigorously contest this matter in court. At the end of the day, we believe facts will guide any final decision and the facts are clear. This merger will:

· Help solve our nation's spectrum exhaust situation and improve wireless service for millions.
· Allow AT&T to expand 4G LTE mobile broadband to another 55 million Americans, or 97% of the population;
· Result in billions of additional investment and tens of thousands of jobs, at a time when our nation needs them most.

We remain confident that this merger is in the best interest of consumers and our country, and the facts will prevail in court."

Update 3: Not like anyone asked 'em, but Sprint's just entered the conversation with a statement of its own: Vonya B. McCann, senior vice president of Government Affairs for the carrier, had this to say:
"The DOJ today delivered a decisive victory for consumers, competition and our country. By filing suit to block AT&T's proposed takeover of T-Mobile, the DOJ has put consumers' interests first. Sprint applauds the DOJ for conducting a careful and thorough review and for reaching a just decision – one which will ensure that consumers continue to reap the benefits of a competitive U.S. wireless industry. Contrary to AT&T's assertions, today's action will preserve American jobs, strengthen the American economy, and encourage innovation."

Pretty amazing how two companies in the exact same business can see this so differently.

Update 4: The Wall Street Journal now also has T-Mobile parent company Deutsche Telekom's response to the news. It's as follows:

On August 31, 2011, the United States Department of Justice (DOJ) informed Deutsche Telekom that it will file a complaint in the U.S. District Court for the District of Columbia seeking a permanent injunction blocking the proposed stock purchase agreement between AT&T and Deutsche Telekom under which AT&T will acquire T-Mobile USA from Deutsche Telekom.

The Company is very disappointed by the DOJ's action, and will join AT& T in defending the contemplated merger against the complaint in court. DOJ failed to acknowledge the robust competition in the U.S. wireless telecommunications industry and the tremendous efficiencies associated with the proposed transaction, which would lead to significant customer, shareholder, and public benefits. We appreciate the DoJ's willingness to discuss possible remedies to address the competitive concerns.
Click to expand...

Shirogayne · Sep 5, 2011

Good, now I won't have to look for a new carrier when I get home.

Tuckerfan · Nov 24, 2011

Word has it that they're calling the merger off.

Scott Hamilton Robert E Ron Paul Lee · Nov 24, 2011

The FCC ruled against it this week, I believe.

frontline · Nov 24, 2011

Yep, FCC killed the deal.

shootER · Nov 24, 2011

I don't normally pay attention to shit like this, but I heard about it on NPR this morning.

BUSINESS NOVEMBER 24, 2011, 6:57 P.M. ET
AT&T's T-Mobile Deal Teeters

With Acquisition in Doubt, Company Sets Aside $4 Billion for Breakup Costs

By ANTON TROIANOVSKI, GREG BENSINGER and AMY SCHATZ

AT&T Inc. signaled for the first time that its planned $39 billion acquisition of T-Mobile USA is more likely to fail than to succeed, saying Thursday it would set aside $4 billion in this year's final quarter to cover the potential cost of the deal falling apart.

The move came after Federal Communications Commission Chairman Julius Genachowski said this week he would seek a rare, trial-like hearing on the merger, which would add months of arguments and another big hurdle for the controversial deal.

AT&T and T-Mobile parent Deutsche Telekom AG responded Thursday morning by pulling their application for merger approval at the FCC in order to focus on their fight with the Justice Department, which has sued to block the acquisition.

The federal agencies say a deal combining the No. 2 and No. 4 wireless carriers would damage competition and potentially raise prices, with little offsetting benefit. AT&T needs both agencies to sign off to get the merger through.

The moves, disclosed in the early hours of Thanksgiving morning in the U.S. and just ahead of the market's opening in Germany, reflect a changed internal calculus at AT&T about the deal's chances to succeed.

AT&T and Deutsche Telekom insisted they weren't throwing in the towel. Their strategy is to try to strike a settlement with the Justice Department or to beat the agency in a trial that begins Feb. 13, then reapply with the FCC for merger approval.

But it was clear that the odds have lengthened significantly for a deal that would have created the country's largest wireless operator. "There's a degree of giving up," said Bernstein Research analyst Robin Bienenstock. "If you believed you could litigate your way out of it or do something else, you wouldn't take the charge."

The developments could mean many more months of uncertainty for the wireless industry and for consumers, particularly T-Mobile's 33.7 million customers. T-Mobile has lost 850,000 contract customers this year, and it failed to land the most sought-after device, Apple Inc.'s iPhone. If the AT&T deal falls through, analysts and investors expect Deutsche Telekom to try to find another way to exit the U.S. market.

A broken deal would send AT&T back to the drawing board for a strategy to shore up its network and compete with larger rival Verizon Wireless. AT&T has said it needs to buy T-Mobile to gain much-needed rights to the airwaves. It also sees the deal as an expeditious way to shore up its network, which has come under strain from the demands of millions of iPhones and other devices, hurting call quality and prompting customer complaints.

Justice Department officials were taking stock of the developments but expected to continue preparing for trial, a person familiar with the matter said. AT&T's move has increased the certainty felt by many department officials that the company is unlikely to prevail in court, this person said. A Justice Department spokesperson couldn't be reached for comment.

For AT&T Chief Executive Officer Randall Stephenson, the merger with T-Mobile represents the biggest gamble in a four-year tenure that has been devoid of blockbuster deals, which were a hallmark of his predecessor, Ed Whitacre. Mr. Whitacre created today's AT&T over more than a decade of deal-making that pieced together fragments of Ma Bell and rolled up several wireless companies.

Analysts had generally considered AT&T to be too big to pull off any more mergers in the U.S. In order to persuade Deutsche Telekom to go along, AT&T agreed to pay $3 billion in cash, and to turn over valuable spectrum if the merger fell through, an unusually large breakup fee.

For AT&T, the benefits of the deal are potentially huge. T-Mobile, which uses the same network technology as AT&T, seemed to be the answer to network constraints. Heavy overlap meant cost savings could be huge. The deal would vault AT&T ahead of rival Verizon Wireless.

AT&T, which announced the deal on March 20, said buying T-Mobile would allow it to extend its high-speed mobile network into more of rural America, striking a chord in Washington. AT&T lined up supporters among governors, members of Congress and interest groups.

Yet AT&T apparently failed to anticipate antitrust officials' concerns about growing market concentration in the wireless industry, already dominated by Verizon Wireless and AT&T.

On the morning of Aug. 31, Mr. Stephenson touted the deal on CNBC. Later that day, the Justice Department filed suit to block it on antitrust grounds.
Last week, an AT&T executive said at an investor conference that the company was confident it would get the deal done.

On Tuesday, the FCC said it believed the deal was bad for consumers and called for its own hearing.

At the FCC, officials learned of AT&T's decision to pull its merger application through a short statement filed into the agency's electronic filing system early Thursday morning.

AT&T can't simply pull its deal, but must get the FCC's approval to do so, agency officials say. The FCC can grant AT&T's request to pull the deal without prejudice, which would allow the company to file an amended deal later. It could allow AT&T to withdraw the proposal with prejudice, which means AT&T couldn't refile an amended deal. Or, the agency could deny AT&T's request and move ahead with its plans to hold an administrative hearing. AT&T disagreed, saying it doesn't need the agency's permission to withdraw it's application.

FCC spokeswoman Tammy Sun said the commission is considering AT&T and Deutsche Telekom's request. Several of the agency's top staffers spent part of their Thanksgiving considering how to respond.

If the FCC allows AT&T to withdraw the deal and refile an amended plan later, it would restart the agency's 180-day deal-review clock.

AT&T's $4 billion charge covers the $3 billion in cash and $1 billion in spectrum licenses it has agreed to turn over to Deutsche Telekom if the deal falls through. The charge reflects the value at which AT&T is carrying the spectrum on its books, but analysts have valued the package at between $5 billion and $7 billion.

AT&T also has agreed to give T-Mobile a roaming agreement that would allow the smaller carrier to use its network. That agreement wasn't mentioned in AT&T's statement, and the carrier declined to elaborate on it.
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Ancalagon · Nov 25, 2011

Can't say I am too upset by this. We need more competition in the wireless market, not less.

Good news about the Cash and Spectrum going to T-Mobile as well. They could use the boost.

Nightbird · Nov 25, 2011

I went with Virgin Mobile about 3 months back. I'd heard about a possible takeover and went elsewhere.
55 a month for unlimited everything. No contract, but if you go that route, you buy your own phone. I'm happy with it.

MikeH92467 · Nov 25, 2011

I just realized that Charlie Ergen (the man behind DISH network/Echostar and the nearest thing to Ted Turner in the game these days) has been vewy, vewy quiet recently. Here's a link to a story that speculates on a DISH/Spring merger. Lot's of interesting implications here, especially now that it looks like AT&T+T-Mobile won't happen.

LINK

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AT&T to buy T-Mobile USA

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Sean the Puritan Endut! Hoch Hech!

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Scott Hamilton Robert E Ron Paul Lee Straight Awesome

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