updated 05:20 pm EDT, Thu April 21, 2011
AT&T further details $39b T-Mobile deal
AT&T on Thursday said its planned buyout of T-Mobile for $39 billion has now been officially sent out for FCC approval in order to get T-Mobile's wireless licenses. With the deal approved by both companies' Boards of Directors, the FCC is the only potential problem with the conclusion of the merger, with an FCC official saying earlier some changes will need to be made. As such, AT&T said the merger would result in 97.3 of Americans to eventually have access to high-speed wireless services rather than the 95 percent initially estimated back in March.
The deal would fast-track innovation and economic growth thanks to this option, the carrier argued.
Sprint, the third biggest operator behind AT&T and T-Mobile, opposes the deal, arguing it would be bad for competition and innovation. The deal would make AT&T the biggest wireless provider by a significant margin.
The transaction would give Deutsche Telekom, T-Mobile's old owner, an approximate eight percent ownership interest in AT&T. A Deutsche Telekom representative would also join AT&T's board of directors.