AT&T to Buy T-Mobile for $39 Billion
Earlier today AT&T and Deutsche Telekom entered into a definitive agreement for the sale of T-Mobile USA for $39 billion in cash and stocks, a deal that would create the largest wireless carrier in the nation and be sure to reshape the industry. The combined customer base of this upcoming behemoth will be 130 million customers.

However the agreed deal is far from being complete, since it will have to pass the usual regulatory and closing hurdles for a company merger. The two companies estimate that it will take them 12 months to get through all the bureaucracy. If that process reaches completion, the network merger will dominate the mobile phone industry in the United States. Only three major US carriers will be left, the remaining two being Verizon and the smaller Sprint Nextel.
One of the main benefits AT&T is claiming to achieve through the merger is a significantly expanded LTE footprint. Estimates put the expansion reaching 95 percent of Americans, which works out to 46.5 million more than AT&T was claiming had it gone LTE alone. The news of these two companies merging might come fairly unwelcoming for current T-Mobile customers, who will more than likely have price hikes after their current contracts expire. AT&T customers on the other hand, could benefit in one notable area: service. Both AT&T and T-Mobile operate on the same technology, the GSM network, which will allow each provider to combine their existing infrastructure to provide better overall coverage to their customers. Service has always been a nagging issue for AT&T, who in the past has been constantly being ridiculed over dropped calls and slow data services.
In the event of the deal failing to receive regulatory approval, AT&T will be liable to dish out $3 billion to T-Mobile, a so called “breakup fee.” Already being one of the top wireless providers in the United States, this is a bold move for AT&T to try and make. With limited major competitors in the industry, the acquisition of T-Mobile will more than likely face a great deal of legal opposition.


