DALLAS, TX – AT&T is buying T-Mobile USA from Deutsche Telekom in a deal worth approximately US$39 billion, the companies confirmed on Sunday.
The move means that AT&T will add 34 million customers to its current 96 million to become the largest wireless carrier in the U.S. It also allows AT&T to gain much-needed spectrum to support the explosive demand for mobile broadband.
“This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation’s future,” said AT&T chairman and CEO, Randall Stephenson, in a statement. “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.”
AT&T said that it expects to finalize the deal within the next year, pending regulatory approval. However, a New York Times report speculates that the transaction could take much longer as the transaction could "start a fierce battle in Washington as regulators scrutinize the effect of the deal on competition and consumers”.
