AT&TÃ‚Â and Deutsche Telekom AG 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.
AT&TÃ¢â‚¬â„¢s acquisition of T-Mobile USA provides an optimal combination of network assets to add capacity sooner than any alternative, and it provides an opportunity to improve network quality in the near term for both companiesÃ¢â‚¬â„¢ customers. In addition, it provides a fast, efficient and certain solution to the impending exhaustion of wireless spectrum in some markets, which limits both companiesÃ¢â‚¬â„¢ ability to meet the ongoing explosive demand for mobile broadband.
With this transaction, AT&T commits to a significant expansion of robust 4G LTE (Long Term Evolution) deployment to 95 percent of the U.S. population to reach an additional 46.5 million Americans beyond current plans Ã¢â‚¬â€œ including rural communities and small towns.Ã‚Â This helps achieve the Federal Communications Commission (FCC) and President ObamaÃ¢â‚¬â„¢s goals to connect Ã¢â‚¬Å“every part of America to the digital age.Ã¢â‚¬Â T-Mobile USA does not have a clear path to delivering LTE.