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Ma Bell Returns: AT&T to Buy T-Mobile for $39 Billion

Telecom giant AT&T (T) is buying T-Mobile USA from Deutche Telekom (DTEGY) for $39 billion, according to the Wall Street Journal. The deal is for $25 billion in cash and the balance in stock. Deutche Telekom will get an 8% stake in AT&T.
This is a game changer. Now AT&T will have one-third more customers than Verizon (VZ) and twice as many as Sprint Nextel (S). The new AT&T will have about 130 million subscribers. AT&T will have nearly 80% of its business in wireless.

Continue reading Ma Bell Returns: AT&T to Buy T-Mobile for $39 Billion

UHF freqency auction threatens wireless industry

In 2009, UHF television stations will abandon analog frequencies as they shift to digital. The frequencies that they will abandon will soon go on the FCC's auction block, and the result could shape the internet and wireless industry for decades to come.

These frequencies, in the 700 mhz range (channels 52-68), are desirable because they travel long distances without interference. Any company wanting to build a national wireless broadband network would find UHF the perfect foundation. In an age of growing connectivity, the profit potential of owning such a backbone is enormous.

The players are already lined up to fight for the frequencies. As you can imagine, the cell phone companies will be players, if for no other reason than to keep new competitors out of their market. Other bidders may include satellite television providers such as DirecTV, and rich internet moguls including Google (NASDAQ:GOOG).

Continue reading UHF freqency auction threatens wireless industry

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Last updated: February 12, 2012: 01:55 PM

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