T-Mobile Commits to BlackBerry Bold 9900 with HSPA+

AT&T needs the spectrum, so yes, they're buying it. Verizon did something similar when they purchased spectrum at public auction a couple of years back. Network improvements involve spending money.

What I don't understand is the "subtraction by addition" argument. Somehow T-Mobile's smaller network being added to AT&T's larger one is going to result in...an even worse one? It doesn't make sense.

AT&T does NOT need the spectrum. They are sitting on AWS spectrum RIGHT NOW that they have no intention of using. This is simply removing an upstart from the field of play. Simple as that.

No, it's not as simple as that. You're trying to tell me that AT&T is so afraid of T-Mobile and their 300,000+ per quarter subscriber losses, that they feel they have to spend $39 billion to acquire them? That makes zero sense.

They're buying them for the spectrum.

They're not really buying them for the spectrum. Spectrum that overlaps AT&T current network? no my friend, no the spectrum. This is all about eliminating competition for 1, and adding by buying another company, subscribers. Yes even with them bleeding quarterly loses. AT&T would rather buy them now, then to see some other competeter merge with them, spring them back to be competing with them some where down the road. Sprint couldn't afford to buy them yet, but with t mobile's constant losing, it was only going to be a matter of time before sprint was going to be able to acquire or merge with them by getting most control of the partnership. Don't believe that? then research the coverage maps of AT&T and compare them to T-Mobile and even read...
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Bullshit. It's the spectrum. Eliminating competition? lmao What competition? T-Mo's dead last with a measly 33 million subscribers, has the highest churn in the industry and no outline for LTE deployment. Wow I'm sure De Le Vega was hella scared and had to get rid of them fast!

It's not the spectrum, AT&T has PLENTY of spectrum that they aren't even using.

Spectrum is not the same thing as coverage. Just because the two have service in many of the same areas doesn't mean they are using the same slices of spectrum in those areas; they aren't. They each have their own slice of the radio spectrum, and by adding T-Mobile's slice to their own, it gives AT&T more bandwidth to add services like 4G, including, of course, mostly areas where they already are.

Azeron said:
AT&T does NOT need the spectrum. They are sitting on AWS spectrum RIGHT NOW that they have no intention of using. This is simply removing an upstart from the field of play. Simple as that.

Yeah, they've got tons of AWS in the midwest were they don't really need it. Tmobile won nationwide aws back when it was being auctioned.

The most important thing ppl are failing to realize is that smaller companies such as T-moble act as a anchor to the big companies that would and then could jack prices up. If you take economics 101 you know that in a capitalistic economy, prices are set by demand. If the prices are too high, customer would flock other places and that's what undirectly sets prices. but now if there is no where else to go and the company knows that, then now they have control over the prices and can set them as high as they want and what are you or I going to do about it? Beg for a Trust Bust?

I don't disagree with you on the economics. However, I don't think they would want to jack up prices, for fear of loosing customers to other carries such like Sprint, Verizon, Metro PCS and the many other smaller carriers who offer much better plans, although not necessarily better services. Any potential class action law suite that would cause the FCC and Justice Dept. To get involved, would be something that could cause them to lose even money. Besides, I don't think that the government powers that be will allow them to charge exorbitant prices to consumers, that's part of what they're considering, if they allow the merger to take place. But, guess only time will tell.

They (ATT) already charge exhorbitant prices...
whats another ten bucks? for say 100~ million subscribers it will only take 39 years to break even. In addition you can nickel and dime for a totally plausible extra 20 buck and you break even in 20yrs! I mean come on this is all about eliminating a carrier with better prices and same coverage. T-Mo just happened to be in a rut and ATT went for it.

You're probably right about all of the above. I guess what I'm looking at is, if Tmobile is in financial hardship, what would keep them from raising the prices on their rates. Like you said, what's an extra twenty bucks? ATT isn't the only bad guy here. Tmobile wants this deal just as much as they do, even if its only for financial reasons. I think if this merger doesn't go through, Tmobile customers may stand to lose a lot more in the long run. I understand that ATT would have to pay out anyway, if the merger doesn't go through but, will that be enough to help Tmobile? Secondly, what are the terms of that pay out? Is it regardless of whether the deal goes through or not or a precaution to keep ATT from pulling out of the deal? If the FCC an...
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I am going to operate under the assumption that you just don't know any better. Let me help you out.

1. Why would Deutsche Telekom agree to this merger when there was the likelihood that it would not go through?

Answer: If Justice or the FTC nix the deal OR if AT&T pulls out of it after learning the divestitures it will be forced to undergo to get the deal approved...AT&T agreed to pay T-Mobile THREE BILLION DOLLARS and to give T-Mobile favorable roaming rates. Why would AT&T agree to such terms you may ask? Simple, because T-Mobile did NOT believe that this merger would be approved and if it were going to put itself through this sort of exercise it damned sure wasn't going to be simply so that it could be told in the end. Sorry....
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I understand just fine. Although, you have made some good points, that doesn't make it so. Tmobile was looking to sell long before ATT put their bid out there. I don't know if you recall or not, Sprint was in talks with Tmobile a little while back but, for whatever reason, the deal did not go through. Dan Hess was quoted as saying that it was something that they were very interested in making happen. Why should ATT be punished for putting forth the offer to buy a company that's up for sale. That just doesn't make any since at all. No one else other than SPRINT has put up a offer. Besides, what you are suggesting is that Tmobile somehow knew that the merger wouldn't go through and that they would stand to make 3billion off of ATT. I really ...
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IIRC when sprint was in talks to purchas T-Mo they also had to put a "deposit" down as well, and IIRC they lost out on that money... 🤨