Power Breakfast: AT&T to buy T-Mobile for $39 billion, nuclear plants, Google in China, bank suit

The big business news Sunday was the announcement that AT&T will acquire T-Mobile USA from Deutsche Telecom in a cash-and-stock deal valued at $39 billion. That will make AT&T the largest cellphone company in the U.S., surpassing Verizon.

AT&T is based in Dallas, but its wireless unit, AT&T Mobility, is headquartered in Atlanta.

The deal will provide AT&T with additional spectrum for data-hungry smart phone users, Jeff Kagan, a wireless industry analyst from Atlanta, told AJC reporter M.B. Pell. The company has suffered from a lack of capacity due to the proliferation of smart phones, Pell writes.

“It’s a smart move for AT&T,” Kagan said. “Ultimately, I think, since the company and customers are demanding more, this is going to be good.”

The deal would reduce the number of wireless carriers with national coverage from four to three. It still needs to be approved by federal regulators, amid concerns that the consolidation of these companies will decrease competition and cause costs to rise for consumers, Pell writes. Kagan, however, expects the merger to be approved and not result in higher costs.

Also in the AJC:

In other media:

- Henry Unger, The Biz Beat

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4 comments Add your comment

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TnGelding

March 21st, 2011
9:27 am

Ultimately? That should tell you something.

At one time I thought the mafia had taken over T. But somehow I ended back with them for my land line and DSL. They took it upon themselves to upgrade the DSL but I didn’t complain since it was faster. I was wrong about the stock. Looks like you can unload it today at a good price, which I would definitely recommend.

Japan is holding nearly a trillion dollars of our debt, so they should be able to handle the recovry once the shock wears off.

The Wall Street wizards know military action is good for business. Those missiles will need to be replaced. Looks like a banner day shaping up, but it’s a long way to the closing bell. 5% would be nice, but I’ll settle for any gain. Europe is up and Asia was up, as well. Lord, have mercy on our souls! And no casualties, please.

Light

March 21st, 2011
1:24 pm

Let God will be done thru this blog http://lightoftheearth.blogspot.com/

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