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AT&T May Offer to Sell 25% of T-Mobile to Push Deal Through

Article Comments  29  

Sep 2, 2011, 7:18 AM   by Eric M. Zeman

According to sources cited by Reuters, AT&T is preparing a two-stage plan in order to convince the government to allow its proposed acquisition of T-Mobile to proceed. First, AT&T is prepared to make guarantees that it won't raise the prices of T-Mobile's current voice/data services. One of the government's fears is that the acquisition would lead to more expensive services. Second, AT&T is said to be considering an asset sale of up to 25% of T-Mobile's spectrum and customer base. One of the major concerns voiced by the Justice Department is that the acquisition would lead to less market competition. It recently revealed that AT&T would control more than 50% of 17 different markets across the U.S. if the acquisition goes through. It's not clear who AT&T might sell such a large portion of T-Mobile's business to, as Verizon Wireless and Sprint would likely be ineligible for the same antitrust reasons. Regional carriers might not have the financial means to buy the assets. AT&T has vowed to fight the government's lawsuit.

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Sep 2, 2011, 8:30 AM


AT&T will use any kind of smoke and mirrors to get their way. All of this is just a shell game. The fact is that they will have total control of GSM in the USA...PERIOD.
Once again, people need to be reminded that the idea of one GSM carrier is stupid. First, lets not forget that Sprint wanted to merge with TMobile. If that actually happened, it would leave AT&T as the only GSM carrier in the US. But my real point is ...

Sep 2, 2011, 1:25 PM

Too much government

The government should let ATT buy Tmobile so long as they have the money which they do.
Then what? Do you have the income or means to support this move? Please keep in mind that this industry lacks much in regulations. Do you know what added advantage this has for the carriers that have all the power? The single most governing we as wire...

Sep 3, 2011, 11:05 PM

I could dream- i wireless

If they had to get rid of 25 percent. It would be nice if i wireless (partly owned by t-mobile and operates in the iowa and surrounding areas) get the midwest t-mobile network and become a regional independent regional operator. i wireless uses t-mobile frequency's now. T-Mobile 3g/4g phones already roam seamlessly on i wireless's 3g network. No new phones required for anybody. Plus, i wireless isn't afraid of building out in rural areas, unlike the current t-mobile.

Sep 3, 2011, 3:18 PM

Wait a minute.

Wasn't there a story a few months ago about AT&T being willing to divest up to half of T-Mobile to make the deal go through?
But divest to who? The smaller carriers cant afford it, and if you divest it to the larger carriers (Verizon or Sprint) then there would be anti-trust issues there, also.

Sep 2, 2011, 9:53 AM

Deal or No Deal

ATT wouldn't be the only GSM carrier. There are a couple of smaller carriers that utilize both GSM and CDMA. The portion that would be would could be sold to them or another carrier, such as Metro PCS or Cricket could decide to get into GSM themselves. That would continue to add competition and it would boost those smaller carriers to a better position in the cellular market. Regardless if ATT was denied the deal, ultimately, they would still end up being the only national GSM carrier.
GSM and CDMA doesn't matter, AT&T would be selling the spectrum, which could be used for any wireless technology you want. Also, selling T-Mobile customers to carriers like MetroPCS or Cricket would be rather dumb. I know I wouldn't want to go ...

Sep 2, 2011, 11:40 AM

Dog fight

I thought this was going to be a lay down and take it deal. Looks like AT&T is trying to work for this one.

It seems like their trying to make it sound like it will be good if they offer 25% to where ever but the outcome would result in the same. AT&T's bragging rights while still having horrible customer service and coverage.

Sep 2, 2011, 10:00 AM

This is news because...?

We already knew they'd be divesting markets, this happens every merger/acquisition.

Sep 2, 2011, 9:26 AM

Sloppy Seconds.


Having owned your house for quite awhile and haven't made much use of the items you've possessed, we know you feel as though cleaning house to get what you want might look valiant. But, please do us all a justice, and do not hold a garage sale of items no one can purchase.

Thank You!


The Consumers of the Wireless Industry.

John B.
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