Hasta La Gadget!

Wowzers! AT&T and Deutsche Telekom have entered into a definitive agreement for the sale of T-Mobile USA for $39 billion in cash and stocks. The combined customer base of this upcoming behemoth will be 130 million humans, though the agreed deal will have to pass the usual regulatory and closing hurdles before becoming complete. The two companies estimate it’ll take them 12 months to get through all the bureaucracy — if they get through, the proposed network merger will create a de facto GSM monopoly within the United States — but we don’t have to wait that long to start discussing life with only three major US carriers. AT&T envisions it as a rosy garden of “straightforward synergies” thanks to a set of “complementary network technologies, spectrum positions and operations.”

One of the other big benefits AT&T is claiming here is a significantly expanded LTE footprint — 95 percent of Americans, or 294 million pops — which works out to 46.5 million more than AT&T was claiming had it gone LTE alone. Of course, T-Mobile has never put forth a clear strategy for migrating to LTE, suggesting that AT&T plans on using the company’s AWS spectrum to complement its own 700MHz licenses as it moves to 4G. You might be groaning at the thought of yet another LTE band, but it’s not as bad as you might think: MetroPCS already has a live LTE network functioning on AWS, so there’s precedent for it. For further details, hit up the gallery below, the Mobilize Everything site, or the official press release after the break.

In the event of the deal failing to receive regulatory approval, AT&T will be on the hook for $3 billion to T-Mobile — a breakup fee, they call it — along with transferring over some AWS spectrum it doesn’t need for its LTE rollout, and granting T-Mo a roaming agreement at a value agreeable to both parties.

Update: TmoNews obtained a copy of Deutsche Telekom’s press release regarding the deal — it looks like the German company will be getting $25 billion in cash and $14 billion in stock, giving it an 8 percent stake in AT&T when all is said and done. Read the full document after the break.

Continue reading AT&T agrees to buy T-Mobile USA from Deutsche Telekom for $39 billion (update)

AT&T agrees to buy T-Mobile USA from Deutsche Telekom for $39 billion (update) originally appeared on Engadget on Sun, 20 Mar 2011 14:27:00 EDT. Please see our terms for use of feeds.

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It ain’t as crazy as you may think. If you’ll recall, we actually heard last month that Deutsche Telekom was mulling the idea of spinning off T-Mobile USA from its portfolio, and now it looks as if one carrier in particular is interested. According to the inimitable “people with knowledge of the matter,” Bloomberg Businessweek is reporting that Deutsche Telekom has gone ahead with talks to “sell its T-Mobile USA unit to Sprint in exchange for a major stake in the combined entity.” Granted, there’s no guarantees at this point that the two will actually reach a deal that sits well with both boards, and up until now, they haven’t been able to come to terms with T-Mob’s valuation. As the story goes, Deutsche Telekom has purportedly said that it could sell “all or part of the US business, and all options are open.” Meanwhile, Sprint’s remaining mum. A merger of these two would combine the number three and four players in America, but if that doesn’t pan out, T-Mobile USA may end up buying wireless spectrum from Clearwire as an alternative. We’re hearing that an outright sale of T-Mobile in the US is pretty much off of the table, but considering just how many backroom talks are apparently going on in both camps, we won’t be surprised until they tell us to be.

Deutsche Telekom thinking of merging T-Mobile USA with Sprint? originally appeared on Engadget on Tue, 08 Mar 2011 09:31:00 EDT. Please see our terms for use of feeds.

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Say it ain’t so! According to this here slide, which details a bit of insidery AT&T information about the impending release of iOS 4.3, Ma Bell’s iPhone 4 will have its Personal Hotspot restricted to use with just three devices. Just about every MiFi / mobile hotspot device we’ve ever seen — including Verizon’s iPhone 4 — has supported five WiFi devices, but unless AT&T pulls a 180 here, it’ll be limiting its iPhone to just three connections. What’s wild is that we’ve found AT&T to actually have superior 3G speeds when you can actually get a signal (and thus, be more conducive to tethering five devices at once), and since you’d be on a data cap anyway, it’s not like AT&T risks losing millions from five P2P servers being ran over one’s iPhone. Granted, it’s possible that some unicorn crafted this piece of paperwork to throw us all off, but we’ve reached out to AT&T and are awaiting comment. You know, just in case.

Update: Based on Apple’s iOS 4.3 page, only three WiFi devices are supported through the Personal Hotspot connection. If you’d like to tether five total devices, the other two will need to be over Bluetooth / USB. Don’t go blaming AT&T here — we’re guessing Verizon’s model will be set up the same way. Thanks, Christian!

[Thanks, Anonymous]

AT&T Mobile Hotspot for iPhone 4 limited to just three WiFi devices (update: it’s an iOS 4.3 thing) originally appeared on Engadget on Fri, 04 Mar 2011 14:24:00 EDT. Please see our terms for use of feeds.

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Continue reading Xperia Play goes back to the FCC, this time with GSM (update)

Xperia Play goes back to the FCC, this time with GSM (update) originally appeared on Engadget on Tue, 01 Mar 2011 10:27:00 EDT. Please see our terms for use of feeds.

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Smart card guru Gemalto is going to help Mark Zuckerberg take over the world! Ok, not really, but the company has made it possible to put Facebook on just about every GSM phone on earth by running it on a SIM chip. This allows every poke, friend request, and wall post to be transmitted by SMS — meaning no data plan required — so that the non-smartphone crowd can access Facebook on the go too. Gemalto, using only the brightest and most creative marketing minds out there, has named the solution “Facebook for SIM.” Users get a free trial for an undisclosed period of time before a subscription for the service becomes necessary — carriers are positively salivating at the prospect of all that extra SMS traffic lining their already deep pockets, no doubt. We knew that Mark had big plans for putting Facebook on phones, but we didn’t figure that dumbphones would get to join in the social networking fun. Finally, a chicken in every pot and a Facebook phone (or three) in every home.

Gemalto puts Facebook on a SIM chip, Zuckerberg’s plan for world domination coming along nicely originally appeared on Engadget on Wed, 16 Feb 2011 15:58:00 EDT. Please see our terms for use of feeds.

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