AT&T Buying T-Mobile USA For $39 Billion

Well, this caught me off guard. This press release announcing the stunning news that T-Mobile USA has been purchased by AT&T in a cash and stock transaction valued at $39 billion:

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.

This basically makes AT&T the largest wireless carrier in the USA overnight….. Or at least within the the next 12 months that it will likely take for the deal to close. Now if you’re one of those people who switched to T-Mobile for AT&T to get away from their notoriously crappy service must really feel horrible.

Thoughts?

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