AT&T and Deutsche Telekom 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 $39bn.
The acquisition 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 companies’ customers, said the company.
In addition, the acquisition will provide an offering to the impending exhaustion of wireless spectrum in some markets, which limits both companies’ ability to meet the ongoing explosive demand for mobile broadband, AT&T said.
AT&T will also expand 4G Long Term Evolution (LTE) deployment to 95% of the US population and reach an additional 46.5 million Americans beyond current plans including rural communities and small towns.
AT&T chairman and CEO Randall Stephenson said the transaction will improve network quality and will bring advanced LTE capabilities to more than 294 million people.
"Mobile broadband networks drive economic opportunity everywhere, and they enable the expanding high-tech ecosystem that includes device makers, cloud and content providers, app developers, customers, and more," Stephenson said.
AT&T said that as part of the transaction, Deutsche Telekom will receive an equity stake in AT&T that would give Deutsche Telekom an ownership interest in AT&T of approximately 8% and a Deutsche Telekom representative will join the AT&T Board of Directors.
