AT&T have today acquired T-Mobile USA from Deutsche Telekom for $39 billion.
The move will result in only two other viable mobile carriers in the US with Verizon and Sprint providing the only competition. The acquisiton also means that AT&T is the single largest mobile carrier in the US.
The deal will result in T-Mobile’s 35 million or so customers joining AT&T’s 95 million. This will put AT&T 30 million or so customers ahead of the second most popular carrier in the US with a combined 130 subscribers. Verizon’s 95 million subscribers has them well ahead of Sprint’s 50 million subscribers in third place.
The move will result in less choice and will probably create a bit of a frantic environment with Verizon and Sprint slugging it out to keep pace with AT&T.
Interesting times ahead.
AT&T Inc. (NYSE: T) and Deutsche Telekom AG (FWB: DTE) 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.
You can read the full press release here.