AT&T’s T-Mobile acquisition to benefit Apple, RIM and Google

By on Mar 21, 2011 at 6:20 PM
mobile March 21, 2011

In a note to investors on Monday, RBC Capital Markets Managing Director Mike Abramsky highlighted several implications surrounding AT&T’s acquisition of T-Mobile USA. Interestingly, RBC sees the merger as having the potential to provide various benefits to each of three staunch rivals — Apple, RIM and Google. For Apple, this deal will drastically increase the company’s addressable market for the iPhone, and could result in an additional 6 to 8 million iPhone subscribers over the next 2 to 3 years. Abramsky also notes that additional pressure could be put on Sprint to offer its own version of the iPhone, which would make the device available from all major U.S. carriers. For RIM, Abramsky writes that while T-Mobile only accounted for between 5 and 7% of RIM’s revenue in 2010, the company could potentially put more BlackBerry devices in the hands of users when devices that would normally be AT&T exclusives become available to T-Mobile’s 46 million subscribers. Finally, RBC’s note points out that while Google may be losing a strong Android partner in T-Mobile, AT&T has shown that it is now committed to Android as a platform, which could lead to better device selection moving forward for former T-Mobile subscribers. AT&T’s acquisition of T-Mobile is expected to close within the next 12 months, pending regulatory approval.

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  • Asdf

    AT&T is not committed to android …

    • http://twitter.com/eRocatemysocks Eric Tamez

      +1000. Atrix was the first nice Android phone.

      • http://twitter.com/NSDinfoTV NSDinfoTV

        yeah and that was like 3 years into android

      • numetheus

        T-Mobile was 3years late for everything else. I was with them for several years since the VoiceStream days and got sick and tired of them releasing a low spec’ed version of the same phone released on other carriers FOR THE SAME PRICE. Remember T-mobile MDA vs AT&T TyTn?? 200mhz vs 400mhz?? Remember the T-Mobile Dash?? t-Mobile has ALWAYS been behind the curve. It has only been recently that they have been getting good phones. And you complain “yeah and that was like 3 years into Android”. lol. T-mobile is the epitamy of “late to the game.” Except for the past few years of course. So if you are accepting of T-Mobile, surely you are accepting of AT&T starting to embrace Android after the iPhone exclusivity was done.

    • http://essayserve.com/ essay writing

      agree with you..

    • el-father

      you don`t need android when you have the best smartphone on the planet!!! APPLE ALL THE WAY!!!

    • Individual11

      Exactly. AT&T is not committed to it’s customers. And definitely not T-Mobile’s either.

      AT&T is committed to itself. Period.

  • Asdf

    AT&T is not committed to android …

  • http://twitter.com/BigC_13 Colton Maier

    AT&T’s commitment to Android is nothing like T-mobiles in the slightest. One supports android wholeheartedly, and one locks it down completely and releases the phones to get in on the money train that Android has created

    • http://twitter.com/NSDinfoTV NSDinfoTV

      tmobile of course was the first android carrying carrier

      • numetheus

        Yet. But was late to EVERYTHING else. Good of them to try; although it was way too late. I was with them for several years and was glad to dumb them because they always released something late and has traditionally had POS phones. Except for the past couple of years though. Too late. Good riddance TMO.

      • Drew

        You’re repeating yourself in the same posts and then contradicting yourself… “Remember the T-Mobile Dash??” Well, no not really I had Blackberry’s then but I looked it up and it was 2009. That’s roughly 2 years ago but then you go on to say, “T-mobile is the epitamy of late to the game”. “Except for the past couple of years though”. Uhmm….STFU!!

      • numetheus

        Umm no. The Dash came out in 2006. Prior to tha every phone they released was lower specced versions of whatever everyone else was releasing. The MDA was particularly poor. I don’t know where you got 2009, but clearly you are one bitter idiot.

    • Edoug

      If course, according to Google, this is EXACTLY what they intended: to give carriers power to innovate (aka differentiate) without having to create their own OS.

      • numetheus

        No this is not what they intended. They intended to provide a platform for Google services. Google services = money in their pocket. It has nothing to do with pushing innovation. It has always been to support their bottom line. Google releasing Android for the simple sake of improving your phones? Nope … that’s just a side effect.

      • Edoug

        Agreed completely. That is the important bit. I just wanted to point out it had nothing to do with empowering the users outside of the Google playground

  • http://about.me/zachgibson Zach Gibson

    You can justify just about anything if you try hard enough. The atrocities of the 20th century are proof of that.

  • http://twitter.com/daPitts Levar Pitts

    They can release all the statements and press releases they want about how beneficial this deal is but the bottom line is everybody no this deal is bull and will leave consumers very unhappy over the next coming years

  • BoLdBuRrY

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    • Gabe Athouse

      BGR…Berry Gangster Rap

  • BigMixxx

    I completely agree…They just sold 10 million iphones…keep the prices right, and they sold it…in turn, they just sold a couple million more blackberries, again, keep the prices right…and now Google gets a HUGE testbed for android devices. Again, keep the prices right and work with google just as you have been working with apple and this becomes a winner.

    Just don’t screw us over in pricing. I will stay with T mobile to the end…get a C7 (astound) or an n8 because they are REAL pentaband phones and use my phone on the network forever.

    • @j_nathaniel

      Good point. The C7 should not be affected by this at all unless there is something disabled.

    • Drew

      The T-Mobile G2x carries at&t’s 3G bands as well (850/1900). These handset manufacturers need to follow Nokia’s lead and start making Pentaband phones…

  • http://c0rinne.net Corinne

    Wow. You’re really working overtime.

    To please AT&T, that is.

  • Anonymous

    Blah, Blah Blah The only real people this is helping out is the stock holders.

    • numetheus

      That that is all it has to help really. These corporation don’t exist for any other purpose than to make money by providing service. This is a capitalistic society.

  • http://www.facebook.com/people/Dan-Carter/500179789 Dan Carter

    “will drastically increase the company’s addressable market for the iPhone, and could result in an additional 6 to 8 million iPhone subscribers over the next 2 to 3 years.”

    Uh oh, another analyst talking out of his ass. Hard to sell an iPhone on T-Mo when they have already said that they won’t be offering the iPhone. At least, not until the merger is complete. In 12 months. So it might be hard to sell millions of iPhones in the next 2 years when you can’t even sell one in the first 12 months.

    From T-Mo:

    “T-Mobile USA remains an independent company. The acquisition is expected to be completed in approximately 12 months. We do not offer the iPhone. We offer cutting edge devices like the Samsung Galaxy S 4G and coming soon our new Sidekick 4G.”

    • sirpaul

      The added coverage is an incentive to buy one from AT&T.

  • Anonymous

    I honestly don’t believe that any of the issues mentioned in this article are of any concern to the majority of T-Mobile subscribers, who will likely be most affected by this acquisition. Thus far T-Mo peeps have enjoyed really nice pricing for very reliable service within major metropolitan areas. In Los Angeles, my service has been impeccable, much better than my experience with AT&T — yes, AT&T in LOS ANGELES, CA was crap. I wouldn’t have believed it if I didn’t experience it.

    When I was with Verizon, for unlimited everything, I was signing $130 checks. With T-Mobile, I’m cutting $86 checks. Numbers don’t lie. I currently use a Nexus S. I can afford an iPhone, but I don’t like the idea of paying $44 extra per month for it. That’s $528 per year, which is literally 6 months of service at my current T-Mobile rate. I’m just not into contributing to executives’ exorbitant salaries if I can have the same for less. I must be crazy.

    This article is why average, middle-class consumers dislike corporate America so much, because it’s so out of touch. Many people who don’t have iPhones are people who don’t want to pay the extra $20-30 per month for it, some can’t, but many of these people are owners of low-end Android phones. The issue for these people is not availability, douchebag analyst, it’s pricing. You know, that check you sign at the end of your billing cycle? Yeah, that’s what many users on T-Mobile care about. Fucking imbeciles are so out of touch. Many of my friends in finance are like this, and it drives me crazy.

    Cellular subscribers are not all finance industry executives with MBAs. They’re teachers, policemen, waitresses, bus drivers, and students. An extra $40 here, another $30 there adds up at the end of the month. I’ve been there before myself, and I can imagine how much this news, as well as bullshit articles like this one by Mike Abramsky, must be infuriating and to some degree hurtful. It’s like nobody cares anymore about the middle class. T-Mobile was it. And now it might be leaving. Very sad.

  • Roger A

    T-Mobile has 36 Million customers, not 46 Million – Are you thinking of Sprint?

  • Fran

    > could result in an additional 6 to 8 million iPhone subscribers

    iPhone subscribers????

    Do you know the difference between a “carrier” and a “manufacturer”?
    Or between a “subscription” and a “purchase”?

  • guest

    AT&T AND T-MOBILE ARE GETTING MARRIED…THERE WILL BE NO RECEPTION

    • blada

      yea tmo and AT&T ARE getting married, with BGR as their maid of honor.

  • http://twitter.com/Dodgerblue Dodgerblue

    maybe they will now time will tell. I still think IOS rules

  • zps

    god, this merger sucks.

    • numetheus

      You don’t have to stay. Move to Verizon.

      • zps

        sadly, what i do or don’t do is not relevant to the anti-competitive nature of this merger.

  • blada

    after all this BS with the FCC and the net neutrality fiasco it would not surprise me if the govt does jack s#it. just last week AT&T announced they will bend their DSL customers over and give it to them really good from behind, while taking their money. their reasoning is BS, are people really that blind?

    why doesnt the gov’t step up and slap at&t down for their anti-consumer practices. this is why america is so behind in technology. there is no need for these oligopolies to allow us to prosper … why would they want that when they are raking in billions with the current market. once that profit gets low, then we will see more innovation. they run the nation. i believe in free market, but i also believe that because at&t operates a service that is for the public good, they should be regulated better. look at what happened with the banking industry.

    the govt will NEVER do anything to protect us because, in the end, they are in the pockets of these big corps. People need to wake up and learn about a concept called “public choice theory.” govt agencies will NEVER regulate properly because they are hoping to one day work for the same companies they are “regulating.” News Flash: they usually end up working for them! Just look at who are the main heads in every single govt administration, no matter who is president. all these cabinet heads are either on the board, were on the board, or will be on the board of the same companies they are “protecting us from.” people need to stand up against this.

  • Drew

    “..AT&T has shown that it is now committed to Android as a platform..”. No, at&t has shown that it no longer has the “cash cow” all to itself anymore. Are you serious?? That sure is some coincidence, iPhone gets picked up on Verizon and all of a sudden at&t announces 12 Android devices for this year. Mike Abramsky, you’re an assclown…!!

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