AT&T acquires T-Mobile; deal worth $30 billion

AT&T and T-Mobile logos
New York, Mar 21: The second largest mobile service provider in United States, AT&T announced the plans to acquire T-Mobile USA from Deutsche Telekom AG. Media reported that the proposed cash-and-stock deal will worth $39 billion.

If the deal gets the approval from regulators, it would help AT&T to surpass Verizon Wireless to become the number one service provider in US. The AT&T acquisition of T-Mobile will also reduce the number US mobile carriers to just three and poses a threat to Sprint, fourth largest carrier in US, and other small mobile operators.

AT&T and T-Mobile said in a statement that the agreement has been approved by the Boards of Directors of both companies and this deal will help both to improve network quality and services.

"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," the statement said.

AT&T Chairman and CEO, Randall Stephenson, said that the deal will improve network quality and bring advanced LTE capabilities to more than 294 million people in US. Also, he hopes that the acquisition of T-Mobile will accelerate the growth of America's high-tech industry.

"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," said Randall Stephenson.

OneIndia News

Please Wait while comments are loading...