AT&T Inc. and Deutsche Telekom have announced today that AT&T will acquire T-Mobile USA from Deutsche Telekomm for they have entered into a definitive agreement between each other in which cash-and-stock transaction currently valued at approximately $39 billion are expected. With the agreement being approved by both the directors of the companies.
The combination between the two will add to network assets and increase the possibility of providing better service sooner than any alternative. 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 a lot of help extended from AT&T. With this transaction, commits to a significant expansion of robust 4G LTE (Long Term Evolution) deployment to such services could reach 95 percent of the U.S., which is an additional 46.5 million Americans beyond current plans which would include rural communities and small towns, making one of President Obama’s dreams come true which is –
“every part of America to the digital age”
as T-Mobile USA does not have a clear path to delivering LTE.
According to Randall Stephenson,Chairman and CEO of AT&T
“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.”
Stephenson goes on to make his statement,
“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 according to René Obermann the Chairman and CEO of Deutsche Telekom
“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.”
In result of the transaction, Deutsche Telekom will be given an equity stake in AT&T and they would also gain an ownership interest of 8 percent from AT&T. To bring it to a grand close one of Deutsche Telekom’s representatives will be joining the Board of Directors.