Hasta La Gadget!

Flipping through the slide deck accompanying a hastily-arranged press conference this morning to talk up AT&T’s planned acquisition of T-Mobile USA, it’s now clear that the company is interested in augmenting its 700MHz LTE spectrum with T-Mobile’s 1700MHz AWS airwaves — a move that it says would help it deploy LTE to 95 percent of the American population. AWS is currently used by T-Mobile for its 3G services, but running LTE there isn’t without precedent — that’s where MetroPCS is already set up, so there’s some potential for consumer hardware and infrastructure synergy there.

AT&T CEO Randall Stephenson has said that the purchase would help the FCC achieve the National Broadband Plan’s goal of ubiquitous (read: rural) broadband availability — clearly a nudge at the feds to push approval in the right direction. General counsel Wayne Watts says they’ve “studied the law, studied the facts” and believe that the transaction can and should go through — but be that as it may, they’re still anticipating “focused divestitures,” probably not unlike the markets Verizon had to flip in order to win approval of its Alltel buy.

Confirmed: AT&T wants to use T-Mobile’s AWS spectrum for LTE buildout originally appeared on Engadget on Mon, 21 Mar 2011 08:17:00 EDT. Please see our terms for use of feeds.

Permalink   |  AT&T  | Email this | Comments

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.

Permalink   |   | Email this | Comments

Yow. Western Digital — the company responsible for shipping the planet’s first 1TB 2.5-inch hard drive way back in 2009 — just announced a monstrous deal to acquire one of its primary competitors, Hitachi Global Storage Technologies. Both outfits have actually shown quite a few interesting HDD designs in recent months, and it’s pretty clear that WD would rather not go at it alone any longer. Granted, these types of deals aren’t entirely unheard of — in fact, Seagate swallowed up Maxtor back in 2005 for a cool $2 billion. Under the deal, which is a mix of $3.5 billion in cash and $750 million in WD common stock, the two will combine in a way that sees the Western Digital brand and headquarters surviving, while Steve Milligan, president and chief executive officer of Hitachi GST, will join WD at closing as president. Hard to say what this will mean for consumer pricing and competition, but we’re pretty certain the powers that be will be looking it all over for fairness before they hop in the blender during Q3. Full release is after the break.

Continue reading Western Digital drops $4.3 billion to acquire Hitachi GST, enter staring contest with Seagate

Western Digital drops $4.3 billion to acquire Hitachi GST, enter staring contest with Seagate originally appeared on Engadget on Mon, 07 Mar 2011 07:35:00 EDT. Please see our terms for use of feeds.

Permalink   |   | Email this | Comments

No huge surprise here, but the FCC just approved Comcast’s purchase of NBC Universal by a 4-1 vote. Details of the ruling aren’t out yet, but FCC chairman Julius Genachowski had been pushing for strong regulations forbidding Comcast from cutting itself sweetheart deals on NBC content or prioritizing its own video traffic on its pipes, so we’d assume that’s part of the agreement here. The only nay vote was from Commissioner Michael Copps, who said the deal “opens the door to the cable-ization of the open Internet.” Ouch. We’ll let you know when we find out exactly what the FCC’s actual conditions are — and keep in mind this deal won’t be wrapped until the Justice Department weighs in, which is expected to happen next week. Can we say it? Oh, we’re going to say it: stay tuned!

Update: That was fast, as Comcast/NBCU announced it’s received permission from the Justice Department as well. Check out the triumphant press release after the break or scour the official site for more details on what conditions may have applied. There will also be a conference call at 4 p.m. so let us know what else you may be interested in finding out before then. So far details include a promise of a “focused mechanism for online video providers to obtain access to certain NBC Universal content,” and that the newly formed entity will retain its economic stake in Hulu, while giving up its voting and board representation rights.

Continue reading FCC approves Comcast’s purchase of NBC (Update: Justice Department too, it’s done)

FCC approves Comcast’s purchase of NBC (Update: Justice Department too, it’s done) originally appeared on Engadget on Tue, 18 Jan 2011 14:22:00 EDT. Please see our terms for use of feeds.

Permalink   |  Michael Copps statement, List of regulatory conditions  | Email this | Comments

Well, we can’t say we saw this one coming, but Skype has just dropped a bombshell right in the middle of CES — it’s announced plans to acquire rival video calling company Qik. No terms of the deal have been disclosed, but Skype says that the transaction is expected to close this month. According to Skype, the two companies will “focus on providing a richer, more integrated experience that will allow people globally to share experiences in real-time video across different platforms,” and it notes that Qik’s “deep engineering capabilities and strong mobile relationships will be an impressive complementary fit with Skype.” Head on past the break for the official press release.

Continue reading Skype announces plans to acquire Qik

Skype announces plans to acquire Qik originally appeared on Engadget on Thu, 06 Jan 2011 14:23:00 EDT. Please see our terms for use of feeds.

Permalink   |   | Email this | Comments