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AT&T, Deutsche Telekom Have Joint Venture Plan in the Wings

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Nov 30, 2011, 4:28 PM   by Eric M. Zeman

AT&T and T-Mobile USA parent company Deutsche Telekom are considering whether or not it would work for the two companies to form a joint venture — instead of merge — reports the Wall Street Journal. Citing sources familiar with the companies' plans, the Journal says that discussions of a joint venture, which would have the two wireless network operators pool resources, are in preliminary stages and being reserved as a back-burner plan to be used only if the deal falls apart. The Journal's sources did not provide specifics on how such a joint venture would work. AT&T hopes to buy T-Mobile USA so it can use the company's spectrum for its planned Long Term Evolution 4G network. The Department of Justice has filed a lawsuit to block the acquisition, which AT&T intends to fight.


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Dec 1, 2011, 1:17 AM

Negativity is contagious

What amazes me about this whole thing is, how everyone seems to be so negative toward this deal going through. What would be the difference if Sprint had bought it or some other carrier? What would be a logical solution that would make everyone happy? Someone will buy TMO, even if it's not ATT. Then what? Is competition still going to be limited? Will prices still go up? As I see it, prices will still go up, competition among the carriers will become more aggressive, as the two large regional carriers fight to become the next national carrier. As it stands now, looks like Leap will...couldn't resist this, leap into TMO's place and become that fourth option everyone is afraid of losing and all will be right in the world again. Every carrier i...
Vmac39 said:
What amazes me about this whole thing is, how everyone seems to be so negative toward this deal going through. What would be the difference if Sprint had bought it or some other carrier?

Sprint would be...

Dec 1, 2011, 8:50 PM

ATT 1970's-1980's

Does anyone think it would be a great day for all off us!!!!..........

If AT&T figures out away to do the merger and then somehow are declared an monopoly and are broken up! Can anyone see the 1970's-1980'S repeating here! Not that I am that old but I do my share of reading what happened in history.

Nov 30, 2011, 4:57 PM

This is one problem with being predictable.

Just as I post a winded explanation on the previous article of AT&T's relentless directive to control the industry, this news of soliciting a cartel with DT, only proves case in point.

John B.
Could this "join venture" be similar to Verizon Wireless where Verizon and Vodafone maintain a joint venture?

Nov 30, 2011, 6:08 PM

a JV could be the ideal litmus test...

As part of its withdrawn merger application, AT&T claims to want T-Mobile's nationwide collection of AWS 2100+1700 MHz licenses so that AT&T can re farm that spectrum to expand its planned LTE deployment from 80 percent to 97 percent of the population. In other words, AT&T desires T-Mobile's spectrum in order to deploy LTE to many more rural areas. (For the moment, set aside the inconvenient reality that AWS spectrum propagation is not very well suited for wide scale rural deployment.)

Well, okay, a joint venture might be just the right litmus test:

*AT&T deploys LTE using its own Lower 700 MHz and AWS 2100+1700 MHz spectrum to 80 percent of the population. That covers all major population centers.

*To reach the remaining 17 pe...

Nov 30, 2011, 4:56 PM

ATT wants it and DT wants to sell it.

ATT wants TMO and DT wants to sell it. Even lets say a joint venture takes place, later on ATT will just buy out TMO. It will happen.
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