AT&T buys T-Mobile for $39 billion

Sections: Cellular Providers, Communications, Mobile

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Not long ago there were rumors of a possible merge between T-Mobile and Sprint which didn’t make much sense. Today’s deal make much more sense: AT&T has bought T-Mobile USA from Deutsche Telekom.

Unlike the rumored T-Mobile/Sprint merger, AT&T and T-Mobile actually use similar technology, albeit it on different frequencies. The move will see AT&T expanding it’s network much faster than if it decided to invest $39 billion in new cell towers. Not sure how it will help users that want better 3G coverage, though. It also depends on how quickly the deal is approved by government agencies.

As part of the purchase, AT&T promises to roll out LTE to reach 95 percent of US customers. The promise is to cover 46.5 million more Americans than originally planned. There is no date mentioned in the release, however. AT&T also claims to pour another $8 billion into it’s infrastructure thanks to the deal. Not sure how much was originally planned, but 48 billion should surely help.

Assuming there are no issues with the purchase, it should be interesting to see how AT&T handles the different spectrums it would now be using. It can’t simply dump the current T-Mobile spectrums for at least a few years since people are still using them. Also, T-Mobile for many has been the only choice for GSM phones without going to AT&T. Many T-Mobile customers I know chose the company over AT&T because of AT&T’s lackluster performance. Will this deal do anything to help that? Maybe, but it’s doubtful.

Read [BusinessWire]

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