Home » Uncategorized » AT&T to Buy T-Mobile, Creating Pentaband Network?

AT&T to Buy T-Mobile, Creating Pentaband Network?

Late yesterday, news broke out that AT&T is going to acquire T-Mobile. This is still pending the approval of the FCC and other governing bodies, but if it does indeed go ahead, it has to be the biggest deal in American cellular phone history. After all, it will create for a virtual duopoly: the new amalgamated AT&T/T-Mobile combo will compete primarily against Verizon, leaving Sprint way in the background.

The total deal sounds like it is worth $39 billion with about $25 billion coming in way of cash and the remaining $14 billion in company stock. That gives Deutsche Telekom, the current parent company of T-Mobile USA, about an eight percent stake in the now significantly larger AT&T. Combined, they expect to earn nearly $80 billion per year.

Forgetting for a moment about the convoluted past of AT&T (being split up only to recombine again), we are left asking what is going to happen to the two GSM networks. T-Mobile uses AWS 1700 bands for its 3G service and AT&T does not. Based on some comments on HoFo, it sounds reasonable that the bigger firm will essentially combine the two 3G networks into a mega-network, not unlike what Rogers did when it acquired Fido. This should help with the already congested AT&T network.

Also, it will create pressure on manufacturers to make more pentaband chips, which may or may not be good for consumers. It does help for Canadian importers, though, since you can import one phone and have it work on both Wind/Mobilicity and Rogers/Telus/Bell. And let’s not forget about their LTE plans moving forward too.

It’ll be interesting to see how the federal governing bodies rule on this deal. Could we see a mega-AT&T only to see it split up (again)… only to see it recombine (again). Makes you think of T-1000, doesn’t it?


About Michael Kwan

A freelance writer and tech geek from Vancouver. Find me at michaelkwan.com and follow me on Twitter @michaelkwan.

Check Also


Try Oculus Rift And Wii To Roam Around On The Back To The Future Hoverboard

Check out how you can fly in virtual space by using an Oculus Rift and a Wii Balance Board.


Amazon Appstore for Android Holiday Deals, Including Free Apps

There are tons of deals from the Amazon Appstore that will be offered starting now and throughout the holiday shopping season. They say that they will have "hundreds of titles that are eitehr free... or available between 50-90% off" the regular price.


Black Friday: Google Play Store Apps, Games and Content on Sale All Weekend

Case in point, if you head over to the Google Play Store right now, you'll find that Google is celebrating all Cyber Weekend with discounts on all sorts of content. This includes many popular apps and games


Black Friday Deal: Samsung Galaxy Tab 3 10.1-Inch for $100 Off

Did you manage to score any epic Black Friday deals this morning? Are you still ...


Arduino Co-Creator Releases Plans for $200 DIY Mobile Phone

Mellis was one of the people who came up with the now hugely popular Arduino platform and now he has come up with plans for people to build their own cell phone for about $200 in parts.


No Discounts for Apple Black Friday, Just Free Gift Cards

If you were hoping to save yourself some cash as you brave the Black Friday shopping crowds, you'll want to go somewhere other than the official Apple Stores.

  • Dillz1220

    So far Verizon been good to me. I was with Cingular until they sold out to AT&T and then I went to Verizon.

  • Antoinemaycock

    I am totally against AT&T buying out T-Mobile. I do not trust AT&T. I have had very bad experiences in trying to contact them for grieviances, been cut off and hung up on, been overcharged. I beleive it is an attempt to monopolize communications and control the communications industry. AT& T needs to be broken up again so we can have some true competition in the phone industry. Its like the monster in your dreams that you can’t get away from. I just cancelled my AT&T phone service because I did not like AT&T customer service. Now AT&T is coming back at me by proposing to by out the cell phone company I use!

  • nick price

    AT&T is getting married to T-Mobile. There will be no reception afterwards.

  • Grammar Police

    Duopology? Try duopoly.