Why AT&T Bought T-Mobile

Criticism against AT&T because the problem is not capable of competing on the growth of mobile data use in the telecommunication industry, estimated to have finally found a way to overcome the problem of network difficulties. All it requires a very large cost, $ 39 billion and for months to overcome regulatory hurdles, by bought T-Mobile.

AT&T has acquired T-Mobile USA with the defeat of Deutsche Telekom for $ 39 billion, is a very bold step. Accordingly, the acquisition of approximately 8% of AT&T Also together with Deutsche Telekom will occupy the AT&T’s board of directors.

The new combined company if the company can run the consent approval, will likely become the largest operator in the U. S. also with rapid growth. Currently, the merger of AT&T and T-Mobile USA has 25% more subscribers than Verizon, with a ratio of 125 million versus 93 million subscribers.

The acquisition of AT&T is not just a subscriber bases, but also about how to improve the reliability of AT&T and preparation to get to 4G era of wireless communications.
In the press release AT&T told very plainly about why AT&T Bought the T-Mobile and why T-Mobile bought AT&T.

As well known in general about the reputation of AT&T that are less good, from increasing the reach and range of network usage data that are less acceptable, even though the iphone has provided millions of new customers and billions in revenue.

The second problem is infrastructure. AT&T can not build towers fast enough, and the approval process to build things unsightly to act as a hindrance to a company’s efforts to improve network reliability.

AT & know it will take many years to improve the network structure is also more open spectrum by the U. S. government for mobile broadband users. Because AT & T’s strategy is through acquisition, T-Mobile USA has a broadband spectrum in the GSM network after AT&T.

In a press release, AT&T says a lot about 4G, although T-Mobile already has LTE technology, but AT&T said no, this acquisition is about the placement of AT&T and is a process in improving the reputation of AT&T.

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