AT&T just announced a definitive agreement with Deutsche Telekom to buy T-Mobile USA for $39 billion in cash and stock. In a press release, AT&T said the agreement has been approved by both companies’ boards of directors.
If the deal meets regulatory approval, AT&T will be the largest wireless provider in the United States. The company says the transaction will allow it to expand its 4G LTE network to 95% of the population of the United States, and touts enhanced “quality in the near term” for AT&T and T-Mobile customers.
Those of a patriotic bent will be glad to know that the transaction will make T-Mobile USA a U.S.-based company instead of a German telecom company that ironically calls itself T-Mobile USA. However, if you want to use a GSM phone, you won’t be left with many choices if this deal does go through. But in AT&T’s press release, the company emphasized how the U.S. market will continue to be competitive even after this deal:
The U.S. wireless industry is one of the most fiercely competitive markets in the world and will remain so after this deal. The U.S. is one of the few countries in the world where a large majority of consumers can choose from five or more wireless providers in their local market. For example, in 18 of the top 20 U.S. local markets, there are five or more providers. Local market competition is escalating among larger carriers, low-cost carriers and several regional wireless players with nationwide service plans. This intense competition is only increasing with the build-out of new 4G networks and the emergence of new market entrants.
Let us know in the comments what you think of this deal, and cast your ballot in our quick poll:
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