QuoteAT&T to Buy T-Mobile USA
AT&T Inc. agreed to buy T-Mobile USA from Deutsche Telekom AG for $39 billion in cash and stock, in a deal that would create the biggest U.S. wireless carrier by subscribers and fundamentally alter the industry's competitive landscape.
Under the deal, the companies said AT&T will pay $25 billion in cash and the balance in stock, giving T-Mobile's German parent an 8% stake in AT&T.
Full Article:
http://online.wsj.com/article/SB10001424052748704433904576212810008230654.html?mod=WSJ_hp_LEFTTopStories
T-Mobile was the only big carrier left that wasn't demanding 2-year contracts and had pretty cheap prepaid plans.
Bad news for wireless consumers.
ATT = teh suxor
I don't know how the anti-trust regulators can keep approving transactions like this. There already is little competition in the communications industry, whether it be phone, internet, cellular, satellite/cable, etc. The proof of it is the lousy service and treatment given customers, the lack of options and real choice, onerous terms and conditions, heavy handed business practices, and relatively high prices versus other parts of the world. And the worst of the worst, according to ongoing surveys, is AT&T.
Like the airline industry, this lack of competition is creating a "race to the bottom." Let's hope this deal gets nixed. Unfortunately, my experience is the agencies charged with regulating this industry ike the FCC are in the pockets of the industry. I don't expect them to stand up for the consumers they are charged with looking out for.
If AT&T honors the existing rate plans of current T-Mobile customers, it seems lke its a win for T-Mobile customers who will gain a much better network (but will loose T-Mobile's fantastic customer service). AT&T customers could then consider switching to T-mobile to lock in a cheaper rate plan, knowing they will gain AT&T service very soon.
Also, it means T-Mobile customers finally get the iPhone! Bad part is that AT&T is unnecessarily expensive and has bad customer service.
I agree stjr. I am not a fan of the wireless companies business practices in the U.S. They demand two year contracts, lock phones, disable features, and sell over-priced and inflexible plans. I'd much rather buy an unlocked phone and use it with any provider just like the rest of the world.
You can't even activate a smart phone on Verizon or AT&T for voice without a mandatory data plan.
I was just thinking, I wonder if T-Mobile will keep running their recent ad campaign knocking AT&T and Verizon? It could take a year for this deal to go through, if it does. Do they take they gloves off or keeping bashing their prospective new "bosses"?
Chipwich, any win for T-Mobile customers will really be a loss. AT&T's network is well documented to be far from stellar (it drops my I-phone calls daily) and their customer service is so bad it falls off the charts even in an industry that, itself, is known for terrible customer service. And, once the ink dries, count on AT&T raising your prices to boot. I won't even get into my litany of their often questionable business practices. I don't think any T-Mobile customers will see this as a "win" when it's done. As a customer of two prior cell companies, both absorbed into AT&T, I can tell you wireless "hell" is coming your way.
http://www.youtube.com/watch?v=CFjVZizLVE4
The NY Times posted a detailed article on this deal, its potential consequence, and its prospects for approval, featuring this quote by Consumers Union, publisher of Consumer Reports:Quote“AT&T is already a giant in the wireless marketplace, where customers routinely complain about hidden charges and other anticonsumer practices,†said Parul P. Desai, policy counsel for Consumers Union. “From a consumer’s perspective, it’s difficult to come up with any justification or benefits from letting AT&T swallow up one of its few major competitors.â€
More at: http://dealbook.nytimes.com/2011/03/20/att-to-buy-t-mobile-usa-for-39-billion/?hp
Quote from: stjr on March 20, 2011, 09:09:46 PM
Chipwich, any win for T-Mobile customers will really be a loss. AT&T's network is well documented to be far from stellar (it drops my I-phone calls daily) and their customer service is so bad it falls off the charts even in an industry that, itself, is known for terrible customer service. And, once the ink dries, count on AT&T raising your prices to boot. I won't even get into my litany of their often questionable business practices. I don't think any T-Mobile customers will see this as a "win" when it's done. As a customer of two prior cell companies, both absorbed into AT&T, I can tell you wireless "hell" is coming your way.
good point stjr. As a T-Mobile customer for almost 10 years now, I have mixed emotions about this deal. I have wanted an iphone for a while, but have refused to pay AT&T's ridiculous service fees (almost $150/mont for the minutes and data plan I would use). I also could not fathom the prospect of having to deal with AT&T's customer service.
I have always been befuddled as to why T-Mobile never caught on more. Their prices were the cheapest of the big four (until Sprint decided to unleash cheaper unlimited plans last year) and their customer service was amazing. Until a year or two ago, it was open 24/7 and I have never left a T-Mobile service call upset. They do everything they can to keep customers happy and take care of occasional overages. Their reception I must admit was not always that great, but has gotten better over the past couple of years. Their local 3G data signal did suck though, AT&T is much better.
Also, while it might not be important to others, their international coverage and roaming agreements were by far the best of the four. I am not that much of a world traveler, but I swear you could not step off a plane anywhere and not have crystal clear coverage (European coverage is especially great). Oh, and if you have a problem in a foreign country, you don't have to worry about it, cause T-Mobile customer care was 24/7 and could sort your issue on the spot.
My only hope is that my current unlimited minutes plan will get to stay when I try to upgrade to an iphone. Without that, I am definitely switching carriers.
Great, more monopolies. Pretty soon they'll only be two wireless carriers in the entire US, cause you just know Verizon is gonna be itching to purchase Sprint after this. Would be a good fit too because they're both CDMA carriers.
This doesn't put consumers in a good position because wireless internet is clearly the way we'll all eventually be accessing the internet. And the carriers have already started introducing tiered (limited) internet service now & completely doing away with any unlimited plans. Verizon actually wants to take that further & start letting certain devices only access certain content, promoting certain sites with speed increases, etc. Google's slimy asses are in this with them of course because Google's in the mobile game nowadays with Android: http://www.engadget.com/2010/08/09/google-and-verizons-net-neutrality-proposal-explained/
Oh, and I don't sign contracts anymore. They're too restrictive, too expensive to get out of & hardware changes too often. I'm really amazed we still do that here in the US. I'd recommend pre-paid any day of the week over contracts now. Used to, pre-paids were the "loser phones", but they've grown up big time.
I've been on Page Plus for a couple months now & its great. They use Verizon's towers & any Verizon branded phone (expect Blackberries). So that means I can buy a used, fairly new Verizon smartphone from someone (a Droid, a Palm Pre, another Android phone, etc), activate it on Page Plus & not have to deal with Verizon directly with their expensive plans & fees. Their Talk n Text 1200 plan is the bomb: http://www.pagepluscellular.com/Plans/Talk%20n%20Text%201200.aspx
Was scrolling through my Pulse newsfeed app yesterday and came across this dissapointing news.
I am a T-Mobile customer that has an Iphone. ATT&T's service is just not good and their customer service is even worse(you will be calling them quite often b/c either your billing was screwed up or your phone drops calls non-stop... I've only called TMobile's customer service line twice... and once was to change voice plans and the other was a billing mistake which they fixed and credited my account ON THE SPOT). I have an unlocked Iphone 3 with a T-Mobile data plan and while the internet service is slightly slower than when I was on ATT&T's network... the overall service with T-Mobile is so much better that I don't mind the minimal(in my mind) internet speed difference.
I may switch over to Verizon when this ATT/TMobile deal goes through.
Terrible news for the consumer.
If this goes through, we might as well just shut down the regulatory committees, as they simply aren't doing their jobs in the interest of the population at large.
I fear it's a lost cause though.
If text messaging charges -- which cost telcos nothing yet are billed at a rate of over $1,000 per megabyte -- haven't been investigated after all these years, I have little faith that this merger will be.
You can use an iPhone on T-Mobile, but the 3G frequency that AT&T uses is different so you are only getting the EDGE network on T-Mobile (that's why it seems so slow).
I'm screwed then.
I'm currently with T-Mobile, and own a Sidekick. In case you didn't know about those, they sent us SK owners a letter a while back saying they are discontinuing the data plans on them. >:( I only had mine for about 8 months and they'll offer me half-off some 'select' phones to 'replace' it (meaning the crappiest Samsung models only and then I'd have a 2-year renewal on that) OR I can drop my contract entirely w/o penalty.
But then what?
I HATE AT&T. I just can't go back to them after CS issues years ago. And I had Verizon before Magenta here, but they don't have the signal strength in my neighborhood - especially when all the Orions fly over.
GRRRRRrrrrrrrrrr...
Quote from: Cliffs_Daughter on March 21, 2011, 11:34:27 AM
I'm screwed then.
I'm currently with T-Mobile, and own a Sidekick. In case you didn't know about those, they sent us SK owners a letter a while back saying they are discontinuing the data plans on them. >:( I only had mine for about 8 months and they'll offer me half-off some 'select' phones to 'replace' it (meaning the crappiest Samsung models only and then I'd have a 2-year renewal on that) OR I can drop my contract entirely w/o penalty.
But then what?
I HATE AT&T. I just can't go back to them after CS issues years ago. And I had Verizon before Magenta here, but they don't have the signal strength in my neighborhood - especially when all the Orions fly over.
GRRRRRrrrrrrrrrr...
You would be pleased to know that there will be a new Sidekick that has the same form, but it runs on the amazing Android and it will be manufactured by Samsung. It should be out in next month. The official Sidekick which T-Mobile outsourced its cloud management data to Microsoft and their 'DANGER' servers, is going to shut down by now or already then.
Last year, the 'DANGER' servers has suffered a catastrophic failure and the entire Sidekick ecosystem collapsed. T-Mobile said NO MORE to that. That's why they are canceling the Sidekick's function in features, but still want to keep the sub-brand alive with the new Sidekick phone coming out.
-Josh
I saw that new Sidekick... but they're not releasing it until AFTER their 'offer' to me ends.
Those jerks.
Oh goody! I can't wait till the lousy AT&T service takes effect! I have had T Mobile since it was Powertel way back when...............even was in on the original Powertel installs for the Jax MTA/Savvanah BSC! Since they were bought out by Voicestream, site maintanance has been going down the hill! Have been to AT&T in the Mo/Kan Market for upgrades and I would be embarassed to claim any of those site as have been done by myself of people that I knew! I don't think this is going to be good for the overall wireless market in any shape fashion or form! Anyone remember when Ma Bell was broke up and what happened with the premise of cheaper service? Here we go again!!
Seems like a blasé move to me. Both T-Mobile / AT&T have mediocre networks and coverage. What may be significant, now AT&T will own the entire GSM customer base... on one giant mediocre network.
I think Sprint's days are numbered. They have great coverage and decent prices but they've always lagged behind in actual phone selection. I wouldn't be surprised if Verizon made a move on them.
I've had Verizon for years. I've been happy with their coverage, prices and customer service. I'm a little worried that data plan pricing is going to increase significantly and it's already been said that 4G will come with tiered data plans... that probably won't affect too many people... accept those like myself that run wifi tethering for free on a jail broken phone :-[
Here's something positive though... new technologies that may lead to a reduction in both data cost & cell service.
http://money.cnn.com/2011/03/21/technology/light_radio/index.htm?hpt=T2 (http://money.cnn.com/2011/03/21/technology/light_radio/index.htm?hpt=T2)
im worrid that earthlink news is reporting an end to unlimited data plan.
This from eartlink:
â€" No more unlimited data plans. AT&T has stopped offering unlimited data plans in favor of plans with monthly data usage caps and overage fees. T-Mobile USA still offers "unlimited" data for smartphones for $30 per month, but slows down downloads after 5 gigabytes of traffic in a month. If the deal closes, current "unlimited" subscribers would likely be grandfathered in, but AT&T would probably stop offering the plan to new subscribers.
I just signed with t mobile, so will i get the grandfather clause!
Would this growth of AT&T bring any jobs to Jacksonville?
Quote from: hillary supporter on March 21, 2011, 03:20:06 PM
im worrid that earthlink news is reporting an end to unlimited data plan.
This from eartlink:
â€" No more unlimited data plans. AT&T has stopped offering unlimited data plans in favor of plans with monthly data usage caps and overage fees. T-Mobile USA still offers "unlimited" data for smartphones for $30 per month, but slows down downloads after 5 gigabytes of traffic in a month. If the deal closes, current "unlimited" subscribers would likely be grandfathered in, but AT&T would probably stop offering the plan to new subscribers.
I just signed with t mobile, so will i get the grandfather clause!
I may have to hit them up for the renewal with a sorta-what-I-want phone tonight just to get that. I will sorely miss the unlimited plans.
Quote from: hillary supporter on March 21, 2011, 03:20:06 PM
im worrid that earthlink news is reporting an end to unlimited data plan.
This from eartlink:
â€" No more unlimited data plans. AT&T has stopped offering unlimited data plans in favor of plans with monthly data usage caps and overage fees. T-Mobile USA still offers "unlimited" data for smartphones for $30 per month, but slows down downloads after 5 gigabytes of traffic in a month. If the deal closes, current "unlimited" subscribers would likely be grandfathered in, but AT&T would probably stop offering the plan to new subscribers.
I just signed with t mobile, so will i get the grandfather clause!
The problem, when you upgrade to your next phone it will almost certainly require the 4G network and new contract.
No value in wireless, but there is in data and with data networks growing, I would not be suprised to see the Feds break up ATT wireless into 2 companies, one for wireless, other for data.
QuoteU.S. Moves to Block AT&T Merger with T-Mobile
The Justice Department filed a complaint on Wednesday to block AT&T's proposed $39 billion acquisition of T-Mobile, a deal that would create the largest carrier in the country and reshape the industry.
The complaint, which was filed in the United States District Court for the District of Columbia, said that T-Mobile "places important competitive pressure on its three larger rivals, particularly in terms of pricing, a critically important aspect of competition." The complaint also highlighted T-Mobile's high speed network and its innovations in technology.
"AT&T's elimination of T-Mobile as an independent, low-priced rival would remove a significant competitive force from the market," the complaint said. "Thus, unless this acquisition is enjoined, customers of mobile wireless telecommunications services likely will face higher prices, less product variety and innovation, and poorer quality services due to reduced incentives to invest than would exist absent the merger."
Shares of AT&T dropped nearly 4 percent on the news, to less than $29. Deutsche Telekom shares fell 5 percent in trading in Frankfurt.
Ever since AT&T announced plans to buy T-Mobile from Deutsche Telekom for $39 billion in March, the deal has proved controversial. Lawmakers, consumer advocates, and rivals have voiced opposition to the merger, saying it would significantly reduce competition. The deal would have left just three major players: AT&T, Verizon and the significantly smaller Sprint Nextel.
"Sprint urges the United States government to block this anti-competitive acquisition," Vonya McCann, Sprint's senior vice president for government affairs, said back in March. "This transaction will harm consumers and harm competition at a time when this country can least afford it."
AT&T has moved to drum up support for the deal of late. On Wednesday, it announced plans to bring 5,000 call-center jobs back to the United States.
"Does this shore up an issue that people have?" Randall Stephenson, AT&T's chief executive, said in an interview on Tuesday. "Sure, I hope it does."
http://finance.yahoo.com/news/US-Moves-to-Block-ATT-Merger-nytimes-2904609364.html?x=0
Hopefully this deal won't go through. It would leave AT&T with the only GSM service in the United States.
This is a terrible deal for EVERYONE but ATT. Just like cable and satellite, which if you will recall, was an industry that promised more selection and better prices, but what did we get, crap channels and constant rate hikes.
When AT&T and Verizon are the only players, I guarantee the prices will rise. And if you want unlimited data you will pay, and pay big. Canada and Europe offer unlimited data plans and DO NOT PUNISH their customers for tethering.
I used to work for BellSouth and the only reason they had decent, I said decent not great rates, was because there was competition keeping the prices down. As soon as there are only two left, we will all be SCREWED.
I currently have Verizon, by way of Alltel, and Alltel had extremely well priced plans with unlimited data. Verizon originally had unlimted data plans and then stopped. When they offered 4G, again they offered unlimited data, but that lasted about a minute. Now the blood suckers have stopped that.
When my contract is up in a few months I'm gonna go with Sprint until Verizon buys them and then it's onto a prepaid and maybe Virgin Mobile for internet. Under my current living conditions I need to have wireless internet and before long it will be both too expensive and too slow. My hope is that people will abandon these crooks and go into a different direction. It's companies like wireless providers that make so many people despise big corporations.
We love to brag about how much greater we are compared to the rest of the world, yet in telecommunications we are so far behind. These companies use sophisticated, advanced equipment but restrict their use, for one simple reason, blood sucking greed. They get us hooked on their products and then either raise prices or restrict their use.
Verizon went ahead and changed the customer agreement for people under contract with unlimited data plans.
Verizon Wireless Says Company Won’t Throttle Speeds, Except When It Does:QuoteVerizon also found a way to keep customers from canceling penalty-free, noting contract changes that reserved the right to implement network management techniques were made in February. The 60-day window for the “materially-adverse†contract change cancellation policy expired in April. Verizon:
By alerting customers in February 2011, and including the notice in our terms and conditions as of February 3, 2011, we made sure customers knew we began reserving the right to implement Network Optimization practices. In February 2011, we began alerting customers:
· Data Management â€" (note: now named “Network Optimization†to more accurately describe the tools) â€" Verizon Wireless may reduce data throughput speeds in a given bill cycle for customers who use an extraordinary amount of data and fall within the top 5% of data users. The reduction will only apply to those using congested cell sites and can last for the remainder of the current and immediately following billing cycle. The reductions will only apply when appropriate in locations and at times of peak demand.
· Data Optimization â€" (note: now named “Video Optimization†to more accurately describe its function) â€" Verizon Wireless is implementing optimization and transcoding technologies in its network to transmit data files in a more efficient manner to allow available network capacity to benefit the greatest number of users, and although unlikely, the process may minimally impact the appearance of the file as displayed on the mobile device.
http://stopthecap.com/2011/09/19/verizon-wireless-says-company-wont-throttle-speeds-except-when-it-does/
Canada has it a LOT worse than us. They have to sign a 3 year contract to get phones at a discounted rate! Anyone remember when we only had to sign a 1 year contract for discounts on phones?
If we are to envy anyone, it's Europe, they do cellular right, but we are certainly not the worst.
Quote from: coredumped on September 25, 2011, 08:45:07 AM
If we are to envy anyone, it's Europe, they do cellular right, but we are certainly not the worst.
Absolutely