US government files to block proposed AT&T / T-Mobile merger (update: companies respond)

You heard right. Bloomberg is reporting that the United States government (!) just filed court papers in Washington, D.C. to block the much ballyhooed tie-up between AT&T and T-Mobile USA. Oddly enough, T-Mobile and AT&T promised this morning that a total of 5,000 jobs would be hand delivered to the US if the two telcos were allowed to become one, but it’ll take a heck of a lot more convincing now. For what it’s worth, this doesn’t mean that the deal is or isn’t happening — it’s just another step in the process — but it most certainly doesn’t bode well for proponents. Nor for AT&T’s share price.

According to the report, the Justice Department feels that the deal would “substantially lessen competition” in the wireless space. In fact, it boldly stated the following: “AT&T’s elimination of T-Mobile as an independent, low-priced rival would remove a significant competitive force from the market.” If things end up falling apart, it’s important to remember that AT&T would be forced to pay Deutsche Telekom $3 billion as a break-up fee, which ought to make Tiger Woods’ misfortunes look like an outright bargain.

Update: Full press release is now embedded after the break, and meanwhile, Federal Communications Commission Chairman Julius Genachowski has issued the following public statement: “Although our process is not complete, the record before this agency also raises serious concerns about the impact of the proposed transaction on competition.”

Update 2: Wayne Watts, AT&T Senior Executive Vice President and General Counsel, issued the following statement (seen after the break)…

[Thanks to everyone who sent this in]

Continue reading US government files to block proposed AT&T / T-Mobile merger (update: companies respond)

US government files to block proposed AT&T / T-Mobile merger (update: companies respond) originally appeared on Engadget on Wed, 31 Aug 2011 10:36:00 EDT. Please see our terms for use of feeds.

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Switched On: The accidental handset company, Part 1

Each week Ross Rubin contributes Switched On, a column about consumer technology.

Tech company acquisitions often seek to reshape a company or even the entire industry. Buying Applied Semantics catalyzed Google’s rise to online advertising dominance. Apple’s purchase of NeXT transformed the former’s operating system’s roadmap. And HP’s merger with Compaq created a $40 billion powerhouse vendor of Windows PCs.

That’s not the case for “Googorola,” a portmanteau that the world formerly knew only as an Italian blue cheese often crumbled into steak salads. Indeed, Google’s recent announcement of its intent to acquire Motorola Mobility for $12.5 billion may turn out to be the highest profile acquisition ever aimed at maintaining the status quo. Presaged by a blog post from Google’s chief legal officer and punctuated by lockstep statements by Motorola’s rival Android licensees praising legal protection, the blog post announcing the acquisition promised to “supercharge” Android. But the subsequent Google conference call regarding the merger reinforced that the “IP” Google seeks to acquire does not stand for “Incredible Phones.” Google seeks to invigorate Android simply by having the freedom to progress unencumbered along the successful path it already has largely staked out.

Continue reading Switched On: The accidental handset company, Part 1

Switched On: The accidental handset company, Part 1 originally appeared on Engadget on Sun, 28 Aug 2011 18:00:00 EDT. Please see our terms for use of feeds.

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Leaked FCC document details AT&T’s 4G LTE rollout plans, talks up T-Mobile merger

On Friday, a law firm accidentally posted a letter to the FCC website, detailing AT&T’s confidential 4G LTE rollout plans and explaining how they would be bolstered by a merger with T-Mobile. Arnold & Porter LLP, which is helping design the deal on AT&T’s behalf, quickly removed its partially redacted document, but the folks over at Gizmodo have gotten their hands on it once again and recently posted it for our viewing pleasure. According to the document, AT&T plans to extend its US coverage to 70 million consumers by the end of this year, before ramping that figure up to 170 million by the end of 2012 and a full 250 million by the end of the following year. The carrier plans to achieve this by upgrading a full 44,000 of its nodes to LTE over the course of the next three years and, once its merger goes through, hopes to cover 97 percent of all Americans within the six years following approval. The letter goes on to explain how the economics behind the TIA-approved deal would help facilitate these aspirations, while confirming that the merger is indeed as expensive as earlier reported — a whopping $3.8 billion, to be exact. To read the document in full, hit up the links, below.

Leaked FCC document details AT&T’s 4G LTE rollout plans, talks up T-Mobile merger originally appeared on Engadget on Tue, 16 Aug 2011 06:48:00 EDT. Please see our terms for use of feeds.

Permalink   |  sourceGizmodo, Broadband DSL Reports  | Email this | Comments

Google’s Moto Mobility deal may have had Microsoft roots, comes with $2.5 billion break-up fee

Is Microsoft preparing to fill in Google’s old mobile boots? It could very well be, now that the search king has firmly committed to the hardware side of the mobile business. According to a report on GigaOM, MS was one of many potential suitors circling Motorola’s treasure trove of patents, effectively forcing El Goog to swoop in for the $12.5 billion kill. Moto’s portfolio of 17,000 patents and 7,500 patent applications would have significantly strengthened Redmond’s attack on the Android platform, but it appears the loss might actually benefit MS in other unintended ways. Despite the cheery, public well-wishing from handset makers, insider rumblings indicate a possible mass OEM defection to Windows Phone 7 could shortly be afoot, paving the way for a fierce, three-way mobile OS fight. For its part, Google doesn’t seem too worried about the competition, considering the deal’s hefty $2.5 billion break-up fee — a percentage three times that of the AT&T / T-Mobile merger penalty — a confident financial sign it intends to win this wireless race.

Google’s Moto Mobility deal may have had Microsoft roots, comes with $2.5 billion break-up fee originally appeared on Engadget on Mon, 15 Aug 2011 19:13:00 EDT. Please see our terms for use of feeds.

Permalink FOSS Patents  |  sourceGigaOM, Bloomberg  | Email this | Comments

Editorial: Engadget on Google’s Motorola Mobility acquisition

Google’s announcement today of its planned Motorola Mobility acquisition may come as a surprise to some, but Moto’s dedication to producing Android handsets, along with its recent $56 million Q2 net loss and comprehensive patent portfolio, make this a logical next move for Mountain View’s search giant. Operating independently — for the near-term, at least — both companies will cooperate to grow Android, while Google claims that it will remain committed to its other partners as well. So what will this mean for Google and the future of the smartphone industry as a whole? Jump past the break for our thoughts.

Continue reading Editorial: Engadget on Google’s Motorola Mobility acquisition

Editorial: Engadget on Google’s Motorola Mobility acquisition originally appeared on Engadget on Mon, 15 Aug 2011 15:31:00 EDT. Please see our terms for use of feeds.

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Google acquiring Motorola Mobility

Google acquiring Motorola Mobility
Happy Monday to you, and happy Monday to Motorola Mobility, which Google has announced is about to become its next acquisition. This comes hot on the heels of a $56 million Q2 net loss for Moto — and CEO Sanjay Jha’s less than subtle hints about going fishing for Android-related patent royalties. Now, at a price of $40 per share for a total of about $12.5 billion, Big G will be making Moto a “dedicated Android partner” to “supercharge the Android ecosystem” and “enhance competition in mobile computing.”

Larry Page had this to say about the deal:

Motorola Mobility’s total commitment to Android has created a natural fit for our two companies. Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers. I look forward to welcoming Motorolans to our family of Googlers.
What happens next? While this will of course strengthen the ties between hardware and software, Google is pledging to continue offering Android as an open platform — Moto will license it and others will be able to as ever. Additionally, Google will continue to operate its new toy as a separate business and not morph it into an in-house hardware wing. But, one has to wonder what this means for companies like Samsung, which partnered closely with Google on the Nexus S, and of course HTC, which released the Nexus One and the iconic G1. And then there’s the big question: just where does Moto Blur fit into this equation?

Update: More quotes from Android partners after the break.

Continue reading Google acquiring Motorola Mobility

Google acquiring Motorola Mobility originally appeared on Engadget on Mon, 15 Aug 2011 07:42:00 EDT. Please see our terms for use of feeds.

Permalink   |  sourceThe Official Google Blog  | Email this | Comments

Telecommunications Industry Association gives AT&T / T-Mobile merger a big thumbs up

The Telecommunications Industry Association claims amongst its ranks some of the biggest names in the tech space, including the likes of Apple, Intel, Microsoft and Nokia — so when the organization talks, people tend to listen. This time out, the TIA is giving the nod to AT&T’s acquisition of T-Mobile, urging that the FCC seriously consider the positive impact it would “have on investment and innovation, expanding consumer access to mobile broadband and addressing the looming spectrum crisis in America.”

Telecommunications Industry Association gives AT&T / T-Mobile merger a big thumbs up originally appeared on Engadget on Fri, 12 Aug 2011 17:10:00 EDT. Please see our terms for use of feeds.

Permalink Mobile Burn  |  sourceTIA  | Email this | Comments

Facebook burns a little cash, buys group messaging and digital book outfit

Facebook gone and done some serious damage to the company credit card, but thankfully, it’s being used for more than replacing chimneys and repairing pool liners. Zuck’s prized possession has just snapped up Push Pop Press and Beluga, with the former being best known for creating interactive digital books, most notably gadget junkie Al Gore’s “Our Choice” book for iPad. Beluga on the other hand, gained lots of attention for its group messaging app built for iOS and Android. Push Pop Press co-founders (and former Apple engineers) Mike Matas and Kimon Tsinteris were quick to say that Facebook has no plans to publish digital books; they did confirm, however, that “the ideas and technology behind Push Pop Press will be integrated with Facebook, giving people even richer ways to share their stories.” Mysterious. Could the Push Press Pop acquisition be the key to the fantasmical iPad app we’ve yearned for since the dawn of the new millennium? Beluga confirmed the future of Facebook mobile messaging when it said, “we’re excited to build our vision for mobile group messaging as part of the Facebook team.” Equally mysterious. Unfortunately, no concrete details are being made available, with each site’s homepage simply confirming that It’s Complicated.

Facebook burns a little cash, buys group messaging and digital book outfit originally appeared on Engadget on Wed, 03 Aug 2011 09:22:00 EDT. Please see our terms for use of feeds.

Permalink All Things D  |  sourceBeluga.com, Push Pop Press  | Email this | Comments

AT&T announces throttling plans, gently reminds us why the T-Mobile acquisition is so great

AT&T today officially confirmed what so many had expected for some time now: the carrier will be throttling select users’ unlimited data plans. The move, which takes effect on October 1st, is a response to a “serious wireless spectrum crunch,” according to a message issued today. The changes will not affect most customers, according to the company, primarily targeting those who fall within the top five percent of heavy users in a given billing cycle. Once the new period begins, speeds will be restored. Even with this new plan in place, however, the company says that the spectrum problems still won’t be resolved — it does have a simple solution, however, explaining that “nothing short of completing the T-Mobile merger will provide additional spectrum capacity to address these near term challenges.” Full text after the break.

Continue reading AT&T announces throttling plans, gently reminds us why the T-Mobile acquisition is so great

AT&T announces throttling plans, gently reminds us why the T-Mobile acquisition is so great originally appeared on Engadget on Fri, 29 Jul 2011 17:03:00 EDT. Please see our terms for use of feeds.

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Garmin confirms its acquisition of Navigon is complete

Mergers and acquisitions can sometimes take some unexpected turns, but that’s not the case with Garmin’s purchase of former rival Navigon. The company said last month that the acquisition would be complete by “late July” and now, on July 26th, it’s announced that the deal is in fact done. There’s still no financial details being disclosed, but execs from both companies are expectedly tossing around words like “excited” and “pleased,” and they’re promising plenty of integration and new opportunities going forward. Obviously, they’re betting they’ll be better as partners than rivals in the face of mounting challenges. Press release is after the break.

Continue reading Garmin confirms its acquisition of Navigon is complete

Garmin confirms its acquisition of Navigon is complete originally appeared on Engadget on Tue, 26 Jul 2011 17:49:00 EDT. Please see our terms for use of feeds.

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