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BREAKING NEWS: AT&T Will Buy T-Mobile USA For $39B

According to several press releases, AT&T has unexpectedly agreed to buy T-Mobile USA for a whopping $39 Billion dollars from Germany’s Deutsche Telekom. The companies announced the deal on Sunday afternoon before the stock market opens on Monday. Clearly a strategy done to help boost its stock price.

The deal would make AT&T a dominant player in the wireless telecom sector, pending regulatory approval of course. The transaction represents a major commitment from the company to beef up its infrastructure and network.

The merger “will improve network quality, and it will bring advanced… 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” said Randall Stephenson, AT&T chairman and CEO.

Lately AT&T has been under fire for network capacity issues and has experienced substantial competition from larger rival Verizon. The deal gives AT&T a boost against Verizon, which recently started selling the iPhone. And analysts predict that the deal will also help AT&T in the 4G sector by allowing it to offer more advanced wireless services.

So what does it mean for the average person like me and you. First, of course, this means coverage. We have heard of the many complains of drop calls on the iPhone. With the acquisition, iPhone users would be able to tap into the T-Mobile EDGE network. Plus its quite likely that AT&T and T-Mobile network’s will help build a stronger 4G network nationwide. And for T-Mobile customers the merger means you can now considered the iPhone. However, you must wait until the government approves the deal, so this will happen once the deal goes through.

Talk about pre-nuptials, if the deal does not through or does not receive regulatory approval, AT&T would have to pay T-Mobile $3 billion — a breakup fee.

I wonder if AT&T would now change it’s name to AT&T&T. That does not sound right, so they probably have the branding folks talking brand integration now.

Photo Courtesy of Gadget Virtuoso
Photo Courtesy of iFranz