Chances are that you might have by now heard about AT&T’s move to buy out T-Mobile USA from Deutsche Telekom. The whole of the tech world is debating the development, and we guess those of you who are not in the know of things as yet would love to learn more about that.
Here is a quick run down on what is indeed happening:
- AT&T and Deutsche Telekom have entered into a definitive agreement, by way of which AT&T will acquire T-Mobile USA from Deutsche Telekom.
- The deal will be a cash-and-stock transaction, valued at approximately $39 billion.
- The $39 billion purchase price will include cash payment of $25 billion, and the balance in stock.
What will it mean?
- AT&T will be able to bring about significant expansion of 4G LTE deployment to 95 percent of the US population.
- That means an additional 46.5 million Americans beyond current plans will be included.
- Fast, efficient and certain solution to be ushered in to challenge the impending spectrum exhaust challenges facing AT&T and T-Mobile.
- Better network capacity, output and quality in near term for customers
- 4G LTE Service for T-Mobile’s 34 million subscribers.
- Optimal combination of network assets to add capacity sooner than any alternative
- Deutsche Telekom will receive an equity stake in AT&T that would give the German group an ownership interest in AT&T of approximately 8 percent.
- AT&T has the right to increase the cash portion of the purchase price by up to $4.2 billion with a corresponding reduction in the stock component, so long as Deutsche Telekom receives at least a 5 percent equity ownership interest in AT&T.