AT&T Cites Benefits of T-Mobile USA Deal

In an investor presentation, AT&T executives laid out the reasons for the $39 billion deal to acquire T-Mobile USA. They expressed confidence in getting the deal approved by the FCC and Department of Justice.


The main reasons given for the acquisition are:


1. It improves network capacity, density, spectrum and efficiency.


2. It expands and accelerates the LTE rollout.


3. It improves the growth potential of the company, adding over 33 million customers.


4. It achieves important business synergies for enhanced efficiency.


5. The companies have highly compatible 4G spectrum (700 MHz, AWS) and operate common network technology (UMTS, GSM, HSPA+).


6. The cell splits achieve by integrating the network in areas where they overlap would double 3G capacities in many urban centers.


7. The fastest LTE speeds possible can be achieved by the pairing of AT&T's and T-Mobile's existing AWS spectrum holdings.


8. The deal will deliver substantial on-going synergies of >$3B in year three.


As for getting the deal approved, AT&T's General Counsel, Wayne Watts, said he fully respects the legal process and that the company can demonstrate that wireless competition "will continue to flourish" after this merger. AT&T sees new entrants into the market, such as Clearwire, LightSquared, MetroPCS and Leap, rather than a consolidation to 3 players.
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