AT&T to defend T-Mobile acquisiton in D.C. this week

By on May 9, 2011 at 5:32 PM.

AT&T to defend T-Mobile acquisiton in D.C. this week

The Senate Judiciary Committee will meet on Wednesday to discuss AT&T’s proposed $39 billion acquisition of T-Mobile USA from Deutsche Telekom — and AT&T’s competitors won’t be sitting quietly. According to The Wall Street Journal, Sprint’s CEO Dan Hesse, Viktor Meena of Cellular South, and Larry Cohen, president of the Communications Workers of America (CWA), will all be in attendance. Competitors are expected to grill AT&T’s Randall Stephenson on the deal that Hesse has said will “stifle innovation” and competition in the U.S. wireless market. While there are rumblings that AT&T has more money for lobbying than Sprint and other competitors, the nation’s largest wireless carrier, Verizon, will not be in attendance. “We are concerned this is an excuse for the government to insert itself into the marketplace,” Thomas Tauke, Verizon’s executive vice president of public affairs, policy, and communication, told The Wall Street Journal. Verizon’s concerned that AT&T could bow to government pressure on net neutrality regulation in an effort to get the acquisition passed. Sprint thinks the deal is bad for other reasons, and one spokesperson said the carrier will “explain [that it thinks] this takeover of T-Mobile is bad for consumers, bad for innovation and bad for the economy,” and added that Sprint sees the deal as a “job killer” that will create a “vertically integrated duopoly.” Meanwhile Stephenson has argued that the deal — over time — will actually be a “net job grower,” and that there’s already plenty of competition in the U.S. wireless market. Similarly, Cohen of the CWA, has called the deal a “victory for broadband proponents.”  Earlier this month the Department of Justice assured the public that it will perform an “in-depth” investigation of the deal.

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AT&T’s T-Mobile acquisition to receive in-depth Department of Justice investigation

By on May 3, 2011 at 3:59 PM.

AT&T’s T-Mobile acquisition to receive in-depth Department of Justice investigation

The Department of Justice will perform an “in-depth” investigation of AT&T’s proposition to acquire T-Mobile USA, Reuters is reporting. Such an investigation comes as no surprise, as one FCC official assured the public on April 14th that the acquisition would get a thorough review from government antitrust and communications officials. Bloomberg says that the DoJ can issue a decision in as little as 30 days, however, a “second request,” could mean that the investigation will take longer. AT&T announced its plan to purchase T-Mobile USA from Deutsche Telekom for $39 billion on March 20th. Despite Sprint’s claims that the acquisition will stifle competition in the U.S. wireless market, AT&T has argued that the deal will fuel economic growth and create new jobs. More →

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AT&T's T-Mobile acquisiton to get thorough review, FCC official says

By on April 14, 2011 at 12:27 PM.

AT&T's T-Mobile acquisiton to get thorough review, FCC official says

AT&T’s plans to purchase Deutsche Telekom-owned T-Mobile USA will get a thorough examination from government agencies, including antitrust and communications investigators, an FCC aide affirmed on Thursday. AT&T proposed the $39 billion deal on March 20th and a company spokesperson told Bloomberg that Ma Bell plans to file its official application to the Federal Communications Commission “around April 21st.” Once the application has been submitted, the FCC reportedly has 180 days to grant approval. However, one FCC employee told Bloomberg that the FCC isn’t always limited to 180 days, so it could take a bit longer before a final decision is released. The deal has been openly opposed by Sprint, which claimed the transaction would “harm consumers and harm competition at a time when this country can least afford it,” and one anonymous FCC official has said “there’s no way the chairman’s office [will] rubber-stamp” the deal. AT&T’s CEO Randall L. Stephenson sees things differently. On March 30th he said the acquisition will immediately improve reliability for AT&T customers, and argued that there’s plenty of wireless competition in the United States that will continue to help push prices down for consumers. More →

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Senate schedules hearing to review AT&T’s T-Mobile acquisition

By on April 8, 2011 at 11:26 AM.

Senate schedules hearing to review AT&T’s T-Mobile acquisition

A United States Senate subcommittee on Friday announced that it will hold a hearing next month to review AT&T’s proposed acquisition of T-Mobile USA. The $39 billion deal, which has been strongly and publicly opposed by Sprint, would see AT&T once again become the nation’s top carrier by subscriber count. It would also give AT&T control of T-Mobile’s AWS spectrum for use with the carrier’s upcoming LTE network rollout. A Senate Judiciary antitrust subcommittee headed by Wisconsin Democrat Herb Kohl will convene on May 11th to review the proposed merger in a hearing. More →

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

By on March 21, 2011 at 6:20 PM.

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

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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AT&T to acquire T-Mobile from Deutsche Telekom for $39 billion

By on March 20, 2011 at 2:30 PM.

AT&T to acquire T-Mobile from Deutsche Telekom for $39 billion

AT&T, the nation’s second largest wireless provider, has just announced that it will acquire T-Mobile USA from parent company Deutsche Telekom in a cash and stock deal worth approximately $39 billion. With all of the talk of Sprint and T-Mobile joining up, the AT&T news comes out of the blue — though strategically it makes more sense due to both carriers’ spectrum and network technology. It has been widely reported that Deutsche Telekom was looking to get rid of T-Mobile USA for various reasons. AT&T has also committed to delivering LTE to an additional 46 million people with the T-Mobile acquisition, promising to cover close to 95% of the U.S. population with LTE wireless services in the future. The deal is expected to close, pending regulatory approval, within the next 12 months. The full press release is after the break.

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Sprint in talks to acquire T-Mobile USA, report claims

By on March 8, 2011 at 9:28 AM.

Sprint in talks to acquire T-Mobile USA, report claims

Rumors of a possible T-Mobile takeover were reignited on Tuesday as Bloomberg reports Sprint and Deutsche Telekom are holding meetings to discuss a possible acquisition. Citing multiple anonymous sources, Bloomberg claims discussions between the two companies have been taking place on and off for some time, and one of the major areas of dispute is T-Mobile USA’s valuation. Should Sprint and Deutsche Telekom eventually come to terms, the deal would reportedly give Deutsche Telekom a sizable stake in Sprint Nextel Corp. following the merger — up to 50%. Sprint declined to comment on the report, while a Deutsche Telekom spokesperson said only that the company “could sell all or part of the U.S. business, and all options are open.” More →

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Deutsche Telekom to launch NFC-enabled phones, including the iPhone, later this year

By on February 15, 2011 at 10:08 AM.

Deutsche Telekom to launch NFC-enabled phones, including the iPhone, later this year

At its Mobile World Congress press conference on Tuesday, Deutsche Telekom mentioned that it will soon begin deploying Near Field Communications (NFC) enabled mobile devices in multiple markets. The deployment starts this year and will ramp up until 2012 when most of Deutsche Telekom’s markets will be included. Phone Scoop is reporting that during the press conference, Deutsche Telekom execs handed out a slide deck featuring Apple and referred to them being included in the 2011 launch — seemingly confirming, or at least fueling the fire, that the next iPhone will include NFC capability. Apple and Samsung were listed as being NFC-compatible in the second quarter, with RIM and LG having devices in the third quarter of 2011. But hey, you already knew that about RIM, didn’t you?

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Deutsche Telekom says Windows Phone 7 sales are ‘excellent’

By on January 21, 2011 at 3:41 PM.

Deutsche Telekom says Windows Phone 7 sales are ‘excellent’

An LG exec was recently heard voicing concerns surrounding the Windows Phone 7 platform, basically saying that the new OS has potential but sales aren’t meeting expectations. He also reportedly said that savvy smartphone users might find the platform “boring.” Lucky for Microsoft, Europe’s largest cellular carrier doesn’t appear to share LG’s opinion. Deutsche Telekom, owner of the massive European network T-Mobile, is hardly bored with the emerging mobile operating system, having told German Press Agency dpa that Windows Phone 7 sales to date have been excellent. “We are ahead of budget, Microsoft is very pleased,” Deutsche Telekom’s head of consumer marketing Ingo Hofacker said at a CeBIT preview in Munich. As huge as the European market is, it’s great to see a wholehearted endorsement issued based on sales from the region’s leading carrier. A second wave of new Windows Phone 7 devices is expected to be unveiled by multiple cell phone makers at the Mobile World Congress show next month. More →

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T-Mobile USA announces lackluster Q3 earnings

By on November 4, 2010 at 7:33 AM.

T-Mobile USA announces lackluster Q3 earnings

Today, T-Mobile USA announced earnings from its third quarter of 2010. How did the company do? Well, to be honest, the stat sheet looks pretty beige. The company is reporting service revenues of $4.71 billion which is flat to Q2 2010 and down 0.5% year-over-year. T-Mo reports 7.2 million of its 33.8 million total customers (~ 21%) are using smartphones — only 2.8 million were using smartphones as of Q3 2009. Magenta saw wireless additions totaling 137,000 and had a lower than expected OIBDA (Operating Income Before Depreciation And Amortization) of $1.32 billion (largely due to investments in its HSPA+ network). Churn was 2.4% and 7.2% for contract and non-contract customers respectively; ARPU (average revenue per user) was $47.

“I am very pleased with the development of blended data ARPU. Along with the growing number of smartphones, this demonstrates the potential of mobile broadband data growth in the US market and for T-Mobile USA in particular,” said René Obermann, Chief Executive Officer of Deutsche Telekom.

Hit the read link to read the full report. More →

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Orange UK and T-Mobile UK join forces to form communications powerhouse, Everything Everywhere

By on May 11, 2010 at 9:40 AM.

Orange UK and T-Mobile UK join forces to form communications powerhouse, Everything Everywhere

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After eight months of waiting, Deutsche Telkom and France Telecom have merged their UK operations to form Britain’s largest communications company, now know as Everything Everywhere. The 50:50 joint venture will merge the corporate operations and network resources of Orange UK and T-Mobile UK to create an umbrella company that will continue to operate the two distinctive brands. Combining the best of both Orange and T-Mobile UK, the newly merged Everything Everywhere now boasts: 713 retail stores, 16,000 employees, and a customer base of 30 million — which exceeds that of rival O2. Hit the jump for the full press release.

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Live from CTIA 2010’s day two keynote with Sprint CEO Dan Hesse

By on March 24, 2010 at 11:48 AM.

Live from CTIA 2010’s day two keynote with Sprint CEO Dan Hesse

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Day two’s CTIA keynote speakers are as follows: Dan Hesse, CEO Sprint Nextel Corporation, William Morrow, CEO Clearwire Corporation, Réne Obermann, CEO Deutsche Telekom AG, Jon Stanton, Chairman of the Board Trilogy International Partners, and Padmasree Warrior, CTO Cisco. Hit the break for the live updates! More →

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T-Mobile adds 1 million new subscribers in 2009, income and revenue decline

By on February 25, 2010 at 1:07 PM.

T-Mobile adds 1 million new subscribers in 2009, income and revenue decline

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T-Mobile held its position as the #4 carrier in the U.S. by adding one million new subscribers to its coffers in 2009 and ending 2009 with a total of 33.8 million customers. Catherine Zeta Jones’ favorite network gained a total of 371,000 new subscribers in Q4 2009, a number that was achieved by the addition of 488,000 pre-paid subscribers and the loss of 117,000 net contract subscribers. Despite the yearly and quarterly growth in its subscriber base, yearly revenue declined to $21.5 billion, a 1.6% year over year drop and quarterly revenue dropped to $5.41 billion from $5.72 billion in Q4 2008. T-Mobile’s net income also took a hit, dropping from $483 million at the end of 2008 to $306 million in 2009. Though overall revenue and income declined, T-Mobile’s mobile data business was lucrative as total data revenue reached $598 million in Q4 2009 and $2.2 billion for the full year, a 35% and 37% year over year increase. Additionally, the Magenta network’s infrastructure was also on the rise; its entire 3G network has been upgraded to 7.2 Mbps HSPA, select markets are being upgraded to 21Mbps HSPA+, and its 3G coverage now reaches 205 million people nationwide. More →

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