The Company American Telephone and Telegraph (AT & T Corp.) was founded in 1885 and for a long time a monopoly on the US long-distance and local telephony market. AT & T is the second largest provider of wireless services in the country (77 million users), the total number of clients of the company - more than 150 million people. Headquartered in Dallas (Texas), the staff more than 300 thousand people.
In March 2011, AT & T announced that it has signed a definitive agreement for the purchase of the operator T-Mobile USA, owned by the German company Deutsche Telekom. The deal, which has already been approved by the boards of directors of both parties, will be $ 25 billion in cash and $ 14 billion in stock.
A subsidiary of T-Mobile USA was acquired by Deutsche Telekom in 2001 for $ 35 billion (then it was known as VoiceStream Wireless) in the hope that over time, Deutsche Telekom will be able to take a very strong position in the mobile market. However, years later, with billions of dollars of investment the company was still in the shadow of the larger players in the market. According to unofficial information, in 2010, Deutsche Telekom also held talks to merge T-Mobile USA to Sprint Nextel.
The acquisition of T-Mobile USA, the fourth largest subscriber base, will enable AT & T to expand its geographic presence. With T-Mobile infrastructure company intends to offer communication technology fourth generation LTE 95% of the US population by plugging in 46.5 million subscribers over the original plan.
AT & T refuses to brand T-Mobile USA and will provide existing subscribers of the operator's services under its own trademark. Brand T-Mobile will continue to be used in Europe. In addition, several thousands of jobs may be reduced in the transaction. At the time of the transaction state of AT & T includes 267 thousand people, T-Mobile USA -.. About 38 thousand representatives of Deutsche Telekom will join the board of AT & T.
Through the acquisition of AT & T also plans to improve the quality of communication, the bandwidth of their networks, which have repeatedly been the target of criticism, particularly from iPhone users. According to some information, the operator once even had to restrict the sale of the device in San Francisco and New York in order to somehow limit the influx of mobile broadband subscribers.
As a result of the transaction, the subscriber base of AT & T will increase to about 130 million subscribers, making the company the largest mobile operator in this parameter in the country. By comparison, Verizon Wireless at the time of the transaction served approximately 94 million subscribers. Compared with Sprint Nextel (third place), the subscriber base of AT & T will be about twice as much. This has caused concern in the Sprint, whose representatives stated that after absorbing control the market (almost 80%) are actually two companies.
The transaction, which is expected to close within 12 months, must be approved by all necessary regulatory bodies, including the Commission on US bonds. In May 2010, its members have expressed concern about the excessive-consolidation in the telecommunications market.