Monday, March 21, 2011

Why has AT&T bought T-Mobile?

AT&T has been criticized and even despised for their inability to manage their growing cellphone data usage and the carrier thinks that it has found a solution to this problem of network now.
But the path is not really simple, AT&T will have to pay $39 billion for it and not to mention the months of regulatory hurdles that it will have to go through.

The move is really stunning and AT&T has bought T-Mobile USA for an astronomical $39 from Deutsche Telekom. This is not all, Deutsche Telekom will get eight percent of seat of board of directors at AT&T. If the deal goes through, AT&T will become the biggest carrier by far in the US. T-Mobile USA and AT&T have about 25 percent more users as compared to Verizon. But this acquisition isn’t really about enlarging the subscriber bases, it is more about improving the reliability of AT&T’s network and also preparing it for the ear of 4G wireless communication.

AT&T has a very bad reputation in the US and it is no secret. The carrier might have millions of users through iPhone and it might have made billions of dollars in profit too but the huge increase in the data usage has seriously strained the network to an unacceptable level. AT&T’s network dropped a lot of calls and a lot of customers were upset about it. Hence there was a buzz all around when Verizon came out with their version of the iPhone.

More Information - http://www.etechreviews.net/why-has-att-bought-t-mobile/

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