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AT&T Faces Penalty If T-Mobile Deal Falls Through

Discussion in 'Wireless News' started by josephd, Mar 21, 2011.

  1. josephd

    josephd Tomorrow is another day.
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    AT&T Faces Penalty If T-Mobile Deal Falls Through (Phone Scoop)


    AT&T today outlined terms of its deal with Deutsche Telekom that would kick in if the deal to buy T-Mobile USA falls through, for example if the government nixes the deal or imposes terms unacceptable to AT&T. AT&T would owe T-Mobile $3 billion, plus the transfer of AWS spectrum licenses that are "not critical" to AT&T's initial LTE deployment, were it to go it alone. The company would also be required to accept a roaming deal for areas where AT&T provides coverage but T-Mobile does not, ensuring that T-Mobile's coverage will improve to match AT&T's whether the deal goes through or not.
     
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  2. bobolito

    bobolito Diamond Senior Member
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    Wow! that sounds like I don't want the deal to go through...LOL. If you think about it, T-mobile customers would be getting the most to benefit if the deal DOES NOT go through.
     
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  3. budney

    budney Resident Headbanger
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    Wirelessly posted (Mozilla/5.0 (Linux; U; Android 2.1-update1; en-us; SPH-D700 Build/ECLAIR) AppleWebKit/530.17 (KHTML, like Gecko) Version/4.0 Mobile Safari/530.17)

    T-Mobile would certainly benefit. The scary thing is how confident AT&T is about this buy out. AT&T wouldn't put that all on the table if their is any uncertainty. :(
     
  4. Shizam76

    Shizam76 Shizam! Babyyyyy!
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    That's what I say....all that cash....AND roaming! Yikes! The roaming alone has made at&t cringe for years now!
     
  5. M in LA

    M in LA Mobile 28 Years Plus
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    I certainly hope the merger goes down in flames.
     
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  6. dmapr

    dmapr Silver Senior Member
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    This is a bad thing however you slice it. If the deal goes through, AT&T will be a GSM monopoly. If the deal does not go through, I'm sure AT&T will find a way to pass on the $3 billion loss to customers in some shape or form.
     
  7. Shizam76

    Shizam76 Shizam! Babyyyyy!
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    That's EXACTLY what will happen.
     
  8. M in LA

    M in LA Mobile 28 Years Plus
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    I don't envy those of you with AT&T right now...

    Of course having Verizon ain't a bowl of cherries either. I wonder what evil, nefarious plans they have to capitalize on this mess...

    Oh well, it looks like the world is coming to an end anyway, so chalk this up to being another sign... :p
     
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  9. hf1khal

    hf1khal Who am I to judge
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    No, VZW is heading to LTE and others will also be doing the same, so in the end we will have all (and most likely Sprint) end up competing on the same technology. I really can not see it going any other way.
     
  10. dmapr

    dmapr Silver Senior Member
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    True, but we're quite a long time away from when we can buy an arbitrary phone and use it on a carrier of our choice. VZW will have to maintain backwards compatibility with CDMA for quite some time, as well as AT&T will have to do the same with GSM & 3G. I don't expect a handful of CDMA/GSM/WCDMA/LTE devices showing up anytime soon, if ever.

    P.S. I'll be very happy to be wrong about it :)
     
  11. spleck

    spleck Tool
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    DT wants to SELL. If the deal with AT&T falls apart, DT will move on to the next buyer (most likely Sprint). Even with $3 billion and some extra spectrum, I think T-Mobile's business will be irreparably damaged. AT&T's spectrum plan announcement puts the kibosh on further 1700 UMTS phone development and effectively says T-Mobile was doing it wrong (all other carriers are using 1700 for LTE or CDMA). Worst case, DT will piece part T-Mobile and AT&T would still have a shot at chunks they consider more valuable.
     
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  12. bobolito

    bobolito Diamond Senior Member
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    LOL! good point... but when we see AT&T so confident about this, it's because they are willing to take whatever conditions the government puts on the deal. Whatever divestitures they'll have to do will likely go to Verizon as Sprint is not in a good shape to be making acquisitions at this time. But I would prefer divestitures go to something like Metro PCS or something like that.
     
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  13. M in LA

    M in LA Mobile 28 Years Plus
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    Scary though. I would hate to see T-Mobile dismembered like that. Hope it doesn't happen...
     
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  14. spleck

    spleck Tool
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    I really liked this piece: Deutsche Telekom's American adventure draws to an unhappy close - FierceWireless

    Excerpts:
     
  15. Yugopro

    Yugopro Senior Member
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    I would not be opposed to the merger if there was a strong GSM provider waiting in the wings, there is not.

    This is a monopoly move. AT&T is buying their only competition. Any European coming to the United States MUST roam on AT&T.

    Verizon is not competition in this market.

    The FCC must not approve this merger.

    This is not good for competition.

    This is only about eliminating the competition.
     
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