T-Mobile Gets Huge Prizes From AT&T Break-up Fee

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Make "free 1 yr cell phone plans with 2-3 yr agreement" and get a TON of new AT&T customers!
 

Nesto1000

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What does this mean? Why is it good?
On the positive side for T-Mobile USA and its customers, 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).
 
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It means Tmobile customers can now have greater range with their devices without worrying about roaming fee's, and potentially larger umbrellas of 3g/4g coverage than they previously had.
 

dalethepcman

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Since AT&T can't buy tmobile because it woudl be unfair to the consumer, they are just going to build up tmobile to be the next AT&T by giving them all their spectrum. Lose-Lose.
 
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One of 2 things happened here:

a. AT&T thought they could "lobby" their way into monopolizing the telecom industry but a regulator actually grew a pair and stopped it, or

b. Deutsche Telecom bribed somebody into foiling the deal for their own benefit.

Personally, I have a hard time believing that the regulators were doing their job and looking out for consumer interests.
 

t_wilson

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[citation][nom]jimsocks[/nom]that 3 billion should go to t-mobile.Deutsche Telekom just hustled at&t[/citation]
The suits at AT&T hustled themselves. They thought they could get away with this and never imagined having to pay the exorbitant fee. It just occurred to me that there is at least a little bit of justice in the world. Hey AT&T, how does it feel when it's you paying the termination fees?
 

pedro_mann

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I just switched to T-mobile from Verizon due to price reasons. And one thing I really miss is being able to travel down all major highways and stream Pandora radio on my phone. By the looks of this, it looks like roaming will improve, plus some extra spectrum to develop. This is definitely good.
 

STravis

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[citation][nom]k0rrupshin[/nom]One of 2 things happened here:a. AT&T thought they could "lobby" their way into monopolizing the telecom industry but a regulator actually grew a pair and stopped it, orb. Deutsche Telecom bribed somebody into foiling the deal for their own benefit.Personally, I have a hard time believing that the regulators were doing their job and looking out for consumer interests.[/citation]

You may be right to be skeptic about the regulators, but I had it on good authority as far back as May 2011 that there was NO WAY this was going through; so did Verizon (did you see them raise a stink about it?) The only people that were naive enough to think this would go through was AT&T.
 

rosen380

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If givingup that $4B is a tax deduction, than some of that might be taxable on the T-Mobile side, right? Not sure how it works if a foreign company is taking the bulk of it, but the $1B worth of spectrum would seem to be taxable at a minimum, so, the net is no more than $3B then... and I think it'd be a tax write-off not a tax deduction as well, no?

The actual tax savings would likely be maybe $500M-$1B -- which is like $0.20-0.30 per working American per month. I don't
 

rosen380

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...think that is going to make anyone lose sleep. I'm pretty sure the other $3-$3.5B loss is more concerning to AT&T than that...
 
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