Mar 24 2011

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AT&T to acquire T Mobile USA

AT&T and Deutsche (German) Telekom AG have revealed to the public that AT&T has purchased T-Mobile USA from the German corporation in a simple cash-and-stock transaction worth about $39 billion.  Both companies’ boards of directors have okayed the sale.
The changeover will provide an optimal combination of network assets that will add capacity sooner than any other alternative.  It will also make it possible to improve network quality for customers in the short term.  Lastly, it will supply a quick, efficient and sure solution to the looming depletion of the wireless spectrum in some markets, which has hampered both corporations in their attempts to meet the continuing, snowballing demand for mobile broadband.
This development signals AT&T’s determination to expand robust 4G Long-Term Evolution (LTE) deployment so that it reaches 95% of the current American population–an increase of 46.5 million consumers, many of who are in smaller communities and rural areas.  Along with the President, the Federal Communications Commission (FCC) is aiming to connect “every part of America to the digital age.”  AT&T Chairman and CEO Randall Stephenson is enthusiastic about the development’s implications.
“This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation’s future,” he said.  “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 this continued growth.”
Deutsche Telekom Chairman and CEO Rene` Oberman echoes these high expectations.
“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,” he said.  “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.”
Numerous high-ranking businesspeople and directors of economic development organizations have seconded these ringing endorsements of this development that will continue the communications conglomerates’ campaign to further Americans’ options for staying in touch with each other and the whole world.
Robert Howden, Executive Director of Texans for Economic Progress had this to say,
“The announcement by Deutsche Telekom’s T-Mobile and Texas based AT&T is great news for millions of Texans who live in the rural areas of our state. This merger will speed up the introduction of the 4G technology to millions of Texans who have dreams of expanding their small business in  markets not only in Texas but around the world.”
J.R. Gonzales, President, National Hispanic Professional Organization said,
“This proposed merger is positive news for every organization committed to providing Hispanics with career and professional development opportunities.  In some cases, minority Americans face obstacles when it comes to accessing the Internet and the countless benefits it delivers in terms of education and jobs. This agreement delivers the promise of enhanced service and greater access to fast wireless Internet services – essential tools in every professional development initiative. This is a win-win that we can certainly support.”
Carlton Schwab, President/CEO Texas Economic Development Council said,
”The Texas Economic Development Council believes that a key advantage of this merger will be the expanded build-out of LTE technology.  Productivity will increase substantially and economic development opportunities will expand as more companies, government agencies and educational institutions have access to the latest and fastest technology.
Texas Association of the Mexican American Chambers of Commerce added, “Delivering expanded access to high-speed wireless services is vital for the Texas Association of the Mexican American Chambers of Commerce and all minority business owners to succeed in the modern technology-based economy. Furthermore, this proposed merger is wonderful news for all small businesses and entrepreneurs in America. For us, this means anything we used to do in the office can be more readily accomplished on mobile devices, saving both time and money.”
Jeffrey L. Boney, Texas Business Alliance said, “Expanded access to wireless service – including high-speed, next generation LTE – is critical to minority- and women-owned business growth and expansion, as it helps us compete on a much larger scale.  This deal is a major step forward and is good news for the Texas Business Alliance as we continue to work with our minority and women-owned business members to be adaptive, responsive and competitive in a globally and technologically changing world.”
The transaction will give Deutsche Telekom an 8% ownership in AT&T, and a representative on the AT&T Board of Directors.  Competition within the communications field has already benefited consumers through a 50% inflation-adjusted decline in rates for 1999-2009.
For more information please visit www.MobilizeEverything.com.

Permanent link to this article: http://www.easttexasreview.com/att-to-acquire-t-mobile-usa/

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