The news breaks on Sunday March 20th, 2011 that AT&T has come to agreement to buy T-Mobile USA from Deutsche Telekom.
AT&T Inc. (NYSE: T) and Deutsche Telekom AG (FWB: DTE) today announced that they have entered into a definitive agreement under which AT&T will acquire T-Mobile USA from Deutsche Telekom in a cash-and-stock transaction currently valued at approximately $39 billion. The agreement has been approved by the Boards of Directors of both companies.
Both AT&T and T-Mobile USA are working on next generation networks using HSPA+ and LTE. Even though both companies are currently on GSM and UMTS/HSPA network, they are using different frequencies for the 3G network.
Previously Bloomberg reports that Deutsche Telekom and Sprint are discussing merger of T-Mobile USA and Sprint. Such merger would have been an interesting move since T-Mobile is operates GSM while Sprint operates CDMA network.
What would the future brings with the merger of AT&T and T-Mobile USA? AT&T would become America’s largest wireless carrier.