AT&T to Acquire T-Mobile USA from Deutsche Telekom

cal04

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Sun Mar-20-11 01:44 PM
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AT&T to Acquire T-Mobile USA from Deutsche Telekom

Edited on Sun Mar-20-11 02:27 PM by cal04

http://www.businesswire.com/news/home/20110320005040/en/ATT-Acquire-T-Mobile-USA-Deutsche-Telekom

-AT&T Inc.and Deutsche Telekom AG today announced that they have entered into a definitive agreement under which AT&T will acquire T-Mobile USA from Deutsche Telekom in a cash-and-stock transaction currently valued at approximately $39 billion. The agreement has been approved by the Boards of Directors of both companies.

AT&T�s acquisition of T-Mobile USA provides an optimal combination of network assets to add capacity sooner than any alternative, and it provides an opportunity to improve network quality in the near term for both companies� customers. In addition, it provides a fast, efficient and certain solution to the impending exhaustion of wireless spectrum in some markets, which limits both companies� ability to meet the ongoing explosive demand for mobile broadband.

With this transaction, AT&T commits to a significant expansion of robust 4G LTE (Long Term Evolution) deployment to 95 percent of the U.S. population to reach an additional 46.5 million Americans beyond current plans � including rural communities and small towns. This helps achieve the Federal Communications Commission (FCC) and President Obama�s goals to connect �every part of America to the digital age.� T-Mobile USA does not have a clear path to delivering LTE.

http://techcrunch.com/2011/03/20/in-the-race-for-more-spectrum-att-is-acquiring-t-mobile-for-39-billion/
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AT&T CEO Randall Stephenson�s key quotes from the release:

�This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation�s future. It will improve network quality, and it will bring advanced LTE capabilities to more than 294 million people. Mobile broadband networks drive economic opportunity everywhere, and they enable the expanding high-tech ecosystem that includes device makers, cloud and content providers, app developers, customers, and more. During the past few years, America�s high-tech industry has delivered innovation at unprecedented speed, and this combination will accelerate its continued growth.�

And:

�This transaction delivers significant customer, shareowner and public benefits that are available at this level only from the combination of these two companies with complementary network technologies, spectrum positions and operations. We are confident in our ability to execute a seamless integration, and with additional spectrum and network capabilities, we can better meet our customers� current demands, build for the future and help achieve the President�s goals for a high-speed, wirelessly connected America.�

And here�s Deutsche Telekom CEO Ren� Obermann:

�After evaluating strategic options for T-Mobile USA, I am confident that AT&T is the best partner for our customers, shareholders and the mobile broadband ecosystem. Our common network technology makes this a logical combination and provides an efficient path to gaining the spectrum and network assets needed to provide T-Mobile customers with 4G LTE and the best devices. Also, the transaction returns significant value to Deutsche Telekom shareholders and allows us to retain exposure to the U.S. market.�