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Expected closing date of AT&T purchase of T-Mobile pushed back to June or July 2012

Posted: , by Alan F.

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Expected closing date of AT&T purchase of T-Mobile pushed back to June or July 2012
The expected closing date of AT&T's $39 billion purchase of T-Mobile has been pushed back due to the legal issues that the carrier has had with the Department of Justice and other carriers. The nation's third largest carrier, Sprint, has especially been vocal in publicizing its distaste for the deal which takes the carrier right underneath it in U.S. rankings and moves it to the carrier in front of them. Sprint CEO Dan Hesse has made a huge amount of noise regarding the proposed purchase. Instead of closing in March or April of 2012, AT&T now sees the deal wrapping up in June or July of next year. If the deal goes through, AT&T will leapfrog Verizon and become the nation's top carrier in terms of subscribers

Besides the Department of Justice seeking an injunction against the deal, Sprint and C Spire are also taking AT&T to court to try and prevent the deal from happening. For its part, AT&T has promised to divest up to 25% of a post-merger T-Mobile and had promised to move a large number of jobs back to the States in order to please the government, which is afraid that a post-merger AT&T would cut jobs and raise prices. AT&T also said any T-Mobile customer whose contract expires after the merger will be allowed to renew the pact at the same rate until they no longer want to renew. Besides dealing with the Justice Department, AT&T is still waiting to hear from the FCC which has yet to vote on the deal. FCC Chairman Julius Genachowski said the T-Mobile deal raises "serious concerns" about competition in the mobile carrier industry.

In addition, approval for AT&T's purchase of a block of spectrum from Qualcomm was combined by the FCC with its approval for the T-Mobile purchase. AT&T now expects the Qualcomm spectrum purchase to close by the end of Q1 2012 instead of the end of this year, as earlier expected.

source: WallStreetJournal

10 Comments
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posted on 06 Nov 2011, 18:14 3

1. Phoneguy007 (Posts: 218; Member since: 02 Jun 2011)


lets see what happens.

posted on 06 Nov 2011, 20:32

6. Droid_X_Doug (Posts: 5286; Member since: 22 Dec 2010)


Definitely on the presumptuous side for AT&T.... Wonder that will play with the U.S. DoJ and FCC?

posted on 06 Nov 2011, 18:28

2. nickjjay (Posts: 79; Member since: 10 Oct 2011)


I think sprint deserves t mobile. That would level the playing field ;-)

posted on 06 Nov 2011, 19:19

4. Carlitos (Posts: 265; Member since: 23 Oct 2011)


They will make a complete mess of things. There Network is currently strungling, in most areas, and they havent even started LTE. I know they will start in mid 2012, but one hting is saying it and another thing is see if they do what they said 8 motnhs ago.

posted on 07 Nov 2011, 09:41

10. Jyakotu (Posts: 813; Member since: 12 Dec 2008)


Unless Sprint decides to make all of their phones world phones (i.e. CDMA/GSM), it would be pointless for them to purchase T-Mobile. We all saw how the Sprint-Nextel venture went. If anything, one of the major European carriers should purchase T-Mobile USA if not AT&T. 3, Orange, O2, and Vodafone should have the money to purchase T-Mobile and build their brands in America.

posted on 06 Nov 2011, 18:56 3

3. squallz506 (banned) (Posts: 1075; Member since: 19 Oct 2011)


Keep pushing it back. I don't want to give up my monthly4g plan.

posted on 06 Nov 2011, 19:49 2

5. Slammer (Posts: 817; Member since: 03 Jun 2010)


With the money ATT is spending on this deal, they could be rolling out LTE more aggressively with the unused spectrum they've been sitting on for five years.

John B.

posted on 06 Nov 2011, 20:46

7. johnny9000 (Posts: 44; Member since: 10 Sep 2011)


Tmobile users might be scared of this, but they shouldn't be. They will get to keep their cheap plans when they move to AT&T. AT&T will have no choice but to honor their plans to save face with the new customer base. Plus AT&T already does this with any network they buy out.

posted on 06 Nov 2011, 22:33 1

8. remixfa (Posts: 13902; Member since: 19 Dec 2008)


yea, they honor the contracts so long as you dont want an ATT phone on an upgrade. When that happens, you will be told the ATT phones only work on ATT plans and be forced off it eventually. Thats how it works in the long run.

posted on 07 Nov 2011, 09:34

9. Rayzin (Posts: 83; Member since: 27 Oct 2011)


It sounds like the FCC is a bit uncertain of the power AT&T would hold after an acquisition like this... Rightfully so, they seem to be gaining a lot out of this deal if it goes through. I don't see this merger happening.

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