T-Mobile to gain licenses to AT&T wireless spectrum
When AT&T gave up its $39-billion bid to buy T-Mobile USA on Monday, a $4-billion pre-tax break-up fee wasn't all the telecommunications giant lost.
Deutsche Telekom, T-Mobile USA's German parent, will also receive licenses to AT&T-owned wireless spectrum -- known as AWS, or Advanced Wireless Solutions spectrum -- in major U.S. markets, and the ability to allow its customers to roam on parts of AT&T's wireless network.
"Both companies are in agreement that the broad opposition by the U.S. Department of Justice (DoJ) and the U.S. telecommunications regulator (FCC) is making it increasingly unlikely that the transaction will close," Deutsche Telekom said in a statement on Tuesday.
"As part of the break-up fee, T-Mobile USA will receive a large package of AWS mobile spectrum in 128 Cellular Market Areas (CMAs), including 12 of the top 20 markets (Los Angeles, Dallas, Houston, Atlanta, Washington, Boston, San Francisco, Phoenix, San Diego, Denver, Baltimore and Seattle)," Deutsche Telekom said.
AT&T also agreed to a seven-year roaming service deal with Deutsche Telekom that will result in T-Mobile's coverage area growing "from 230 million potential customers at present to 280 million.
"As a result of the agreement with AT&T, coverage will be extended to many regions of the U.S. in which T-Mobile USA previously had neither its own high-speed mobile communications network nor the associated roaming agreements."
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-- Nathan Olivarez-Giles
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Photo: A T-Mobile billboard near the Bellevue, Wash., headquarters of T-Mobile USA. Credit: Ted S. Warren / Associated Press
