T-Mobile wins more spectrum and roaming agreement

Deutsche Telekom, parent company of T-Mobile USA, can't be too upset about the failed merger with AT&T. We've known since the announcement of the merger earlier this year that there would be a big penalty in cash and spectrum for AT&T if it didn't go through, but today T-Mobile announced exactly what that spectrum would be.

While they won't be receiving the $39 billion from AT&T that they were planning on, they will be getting one of the largest termination payouts in history in the form of $3 billion in cash, a large chunk of AT&T's AWS spectrum, and a long term UMTS roaming agreement between the two networks.

Cash aside, the spectrum and roaming agreements are huge for T-Mobile, and make them even more valuable to a future buyer, such as Sprint. T-Mobile USA will receive a large package of AWS mobile spectrum in 128 markets, including Los Angeles, Dallas, Houston, Atlanta, Washington, Boston, San Francisco, Phoenix, San Diego, Denver, Baltimore and Seattle. T-Mobile currently uses the AWS to provide mobile data to their customers, although that is choice that has limited the availability of some smartphones on their network, such as the iPhone. The UMTS roaming agreement is good for seven years, and according to T-Mobile will allow its coverage area to expand from 230 million to 280 million Americans.

The cash however, will go straight into paying off debt.

It is expected that DT will continue to seek someone to take T-Mobile off their hands in the USA. In a strange way, the failure of the AT&T deal may have actually made it easier to attract future suitors.

Report a problem with article
Previous Story

Most pirated TV shows of 2011

Next Story

Razer Blade gaming PC notebook delayed to January 2012

12 Comments

Commenting is disabled on this article.

Ely said,
I really hope Sprint takes it over or any other company but Verizon.

You're in luck then, because I don't think Verizon would have much luck of getting this approved either...

Sprint I would consider a reasonable merger, if they hadn't completely squandered NexTel... It would be a shame for them to merge with T-Mobile and have T-Mobile essentially disolved....

That roaming agreement is AWESOME news for T-Mobile customers, like me.

I'd prefer that T-Mobile stay independent, but if it's going to be bought by someone, I'd prefer Sprint.

Actually, anyone but the scumbags at AT&T.

I would very much prefer they stay independent as well, other then phone selection I've been extremely happy with them in the ATL market for like 12+ years now, way back when they were powertel\voicestream locally.

tmaxxtigger said,
Makes you wonder, it was in T-Mobiles interest for the deal to fail, what strings did they pull to get this to happen...

I doubt it, the $39 billion is probably worth a lot more.

M_Lyons10 said,
Wow. I wonder how AT&T backed out of the $39 Billion payout...

They didn't. That was the price to purchase T-Mobile which they're no longer doing. Hence the termination penalties listed in the article.

M_Lyons10 said,
Wow. I wonder how AT&T backed out of the $39 Billion payout...

The $39b was he original price for AT&T buying T-Mobile USA from DT. The $3b was the consolation prize that AT&T paid DT. Sorry if that was not clear enough.

Marshalus said,

The $39b was he original price for AT&T buying T-Mobile USA from DT. The $3b was the consolation prize that AT&T paid DT. Sorry if that was not clear enough.

Sorry, that was a complete brain fart. I'm not sure what I was thinking... lol

They are the same company (DT AT&T) if you dig and do some research.

M_Lyons10 said,
Wow. I wonder how AT&T backed out of the $39 Billion payout...