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?

The post AT&T to Buy T-Mobile, Creating Pentaband Network? appeared first on Mobile Magazine.

By combining their powers, T-Mobile and Orange will become the largest mobile phone company in the United Kingdom. The only major speedbump left in their path is a request from the Office of Fair Trading (OFT), checking for any issues related to a monopoly or something similar.

For instance, 3 is the smallest mobile phone network in the UK and it has largely been credited with driving the price down in recent years. A bigger juggernaut may be able to muscle out a smaller firm like 3 (which is owned by Hong Kong-based Hutchison Whampoa).

To overcome this concern, the new deal gives 3 access to 3,000 more mast sites across the UK, and  gives them the largest 3G network in the United Kingdom. Further still, T-Mobile and Orange will need to forfeit 25% of their current spectrum so that competitors can jump in for some wireless broadband.

Let’s not forget about Vodafone and O2 too. They might not be happy with this merger either.

The post T-Mobile set to merge with Orange, getting EU go-ahead appeared first on Mobile Magazine.