Huge news, folks. With all the news that Sprint would acquire T-Mobile, this one took us by surprise. Instead, it’s AT&T that entered into a “definitive agreement” with Deutsche Telekom to acquire T-Mobile USA.
What does this all mean? Well, for one, AT&T is going to surge right past Verizon, but AT&T will also be acquiring a ton of spectrum. The carrier says that it is still committed to deploying 4G LTE to its customers and is still on track to do so. In fact, AT&T now expects to get 4G LTE to an additional 46.5 million customers thanks to its acquisition of T-Mobile.
René Obermann, Deutsche Telekom CEO, says, ““After evaluating strategic options for T-Mobile USA, I am confident that AT&T is the best partner for our customers, shareholders and the mobile broadband ecosystem. Our common network technology makes this a logical combination and provides an efficient path to gaining the spectrum and network assets needed to provide T-Mobile customers with 4G LTE and the best devices. Also, the transaction returns significant value to Deutsche Telekom shareholders and allows us to retain exposure to the U.S. market.”
Indeed, it’s exactly what Dutsche Telekom needs in order to maintain relevance in the U.S. where T-Mobile is currently the fourth largest wireless carrier behind Verizon, AT&T and Sprint.
For more details, see the press release on the following page.