AT&T Merger with T-Mobile

Yesterday T-Mobile released a press release answering some key questions about AT&T’s $39 billion dollar acquisition of T-Mobile USA Inc.

The merger will create the largest US mobile phone company and is expected to take 12 months and in that meantime, the two companies will continue to function independently.

Service and billing will not change and T-Mobile states, “The merger will ensure the deployment of a robust 4G LTE network to 95% of the U.S. population, something neither company would achieve on its own. Also, because of our compatible networks and spectrum, the customers of T-Mobile USA and AT&T will experience improved voice and data service almost immediately after the networks are integrated.”

Sounds promising, but what about the big question….Is T-Mobile getting the iPhone?

Their answer:  “T-Mobile USA remains an independent company. The acquisition is expected to be completed in approximately 12 months. We do not offer the iPhone. We offer cutting edge devices like the Samsung Galaxy S 4G and coming soon our new Sidekick 4G.”

Bloomberg News reports, “AT&T expects $7 billion in integration costs over the next three years, said John Stankey, president of AT&T Business Solutions. To free up capacity on the 3G network, used by iPhone customers, for T-Mobile users, AT&T will have to wait until subscribers move to the planned 4G network, a process that may take three to five years, (Craig) Moffett said (an analyst at Sanford C. Bernstein who rates AT&T ‘market perform’).

AT&T was the only U.S. carrier selling the iPhone until Verizon Wireless got the device this year. The smartphone, which downloads music, videos and accesses the Internet, clogged AT&T’s network in some markets, causing dropped calls and hurting customers’ satisfaction ratings.”

AT&T shares rose this morning in the New York Stock Exchange composite trading as did T-Mobile’s Deutsche Telekom shares in Frankfurt trading, making it the biggest intraday gain ever.

Photo from bnpositive via Flickr