Monday, March 21, 2011

AT&T To Buy T-Mobile For 39 Billion Dollars

AT&T plans to acquire T-Mobile USA from Deutsche Telekom AG for a cool $39 billion.

The lucrative deal will supposedly improve network quality for both carriers, while offering a "fast, efficient and certain solution" to the "impending" exhaustion of wireless spectrum in certain markets.

"This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation's future," explained AT&T CEO Randall Stephenson. 



"[For example], it will bring advanced LTE capabilities to more than 294 million people. [In addition], mobilebroadband networks drive economic opportunity everywhere, and they enable the expanding high-tech ecosystem that includes device makers, cloud and content providers, app developers and customers."

Of course, it remains unclear if the U.S. government will expedite the deal, as AT&T requires the FCC's approval to acquire T-Mobile's spectrum licenses.

The acquisition is also likely to face quite a bit of scrutiny by the US Department of Justice (DoJ), which will undoubtedly express concern over various antitrust issues.



Indeed, Herbert Hovenkamp, a law professor at the University of Iowa, believes the deal will have a difficult time meeting new merger guides stipulated by the DoJ.

Read More From TG Daily

No comments: