AT&T CEO: T-Mobile acquisition will immediately improve reliability

By on March 30, 2011 at 5:52 PM.

AT&T CEO: T-Mobile acquisition will immediately improve reliability

AT&T was noticeably silent about its $39 billion acquisition of T-Mobile during the CTIA Wireless 2011 tradeshow last week, but on Wednesday the company’s CEO, Randall L. Stephenson, took some time to discuss potential public benefits of the purchase. Speaking at the Council on Foreign Relations, Stephenson argued that by purchasing T-Mobile, AT&T will increase capacity by 30% immediately while simultaneously increasing network reliability. AT&T predicts that network traffic could grow 5-8 times from where it is today over the next 5 years, and that kind of growth would require more spectrum capacity than is currently available. According to PCMag, Stephenson also said that the purchase would allow AT&T to cover 95% of the United States with a 4G network. When asked whether the purchase would create a AT&T/Verizon Wireless duopoly, Stephenson pointed to major markets where there are often five or more carriers to choose from, such as New York. That doesn’t include wholesale retailers such as Clearwire or LightSquared, both of which have signed on to sell Best Buy Connect branded 4G networks. Similarly, Stephenson stated that in Detroit, San Francisco, and in Miami, among other places, T-Mobile isn’t considered the No. 4 carrier. That kind of competition, Stephenson believes, will push prices down for consumers. Stephenson admitted that the acquisition could result in some job losses as the two companies integrate, but believes that the end result will be a “net job grower.” More →

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T-Mobile USA considers selling cellular towers to raise funds for ‘capital spending’

By on January 21, 2011 at 2:37 AM.

T-Mobile USA considers selling cellular towers to raise funds for ‘capital spending’

Here’s a head scratcher. During a speech today in New York City, Deutsche Telecom CEO, Rene Obermann, told investors that T-Mobile USA would consider “selling nonstrategic assets such as its broadcast cellular towers in order to raise additional funds for capital spending.” We were under the distinct impression that cellular towers were, in fact, capital assets (especially for a wireless provider). It is also a little disconcerting that the towers were referred to as “nonstrategic.”

“We’re definitely not in a rush,” said Olbermann, “the financials [would have to] work out.”

T-Mobile USA’s CEO, Phillip Humm, promised investors $3 billion in revenue growth over the next few years; T-Mobile’s revenues have been, for the most part, flat over the past two years. More →

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