AT&T's press release tells a very clear story of why AT&T bought T-Mobile and why T-Mobile bought AT&T.
There wouldn't have been so much hype surrounding the Verizon iPhone if AT&T's network didn't drop so many calls and upset so many customers.
Two sections of AT&T's press release are devoted specifically to this problem. The simplest way to get its hands on precious broadband is through acquisition, and T-Mobile USA has the most GSM broadband spectrum after AT&T.
The second problem is infrastructure. AT&T simply can't build towers fast enough, and the approval process to build the unsightly things acts as a major roadblock to the company's efforts to boost its network reliability.
$39 billion is a lot of money to buy some towers, but because T-Mobile USA utilizes GSM technology (rather than the CDMA technology employed by Verizon), it can immediately use them to boost its network.
If the deal is approved, expect AT&T to quickly offload some of its mobile data traffic on T-Mobile's infrastructure.
No, today's acquisition is all about bolstering AT&T's network and beginning the process of repairing its reputation.
If history is any guide, the prime beneficiary to AT&T�s $39 billion acquisition of T-Mobile will be Verizon. The bigger challenge will be keeping T-Mobile customers like my friend, Alex. Look at the comment stream of almost any article on the deal and you will find similar reactions from numerous T-Mobile customers. This sentiment, on top of the drawn-out approval process, will create significant opportunity for Verizon and other rivals to poach T-Mobile customers.
Seagate gained market share and, by reducing industry capacity, forced higher pricing.
Yes, Verizon benefits from all the problems that AT&T faces, but doesn�t AT&T�s acquisition of T-Mobile pose potential hazards for Verizon? If AT&T navigates its integration challenges well, Verizon will face a more formidable challenger in terms of scale and network capacity. How will emerging technologies and user behavior around WiFi, 4G, payments, mobile commerce, social media, TV-everywhere, and so on, affect the role of the mobile operators? If it plays its cards right, Verizon will also benefit from the opportunity to focus on those disruptive issues while AT&T works through with its T-Mobile acquisition.
News: AT&T Bought T-Mobile
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