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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]
Samsung Hercules confirmed as a T-Mobile Galaxy S II variant
The picture almost says it all: the Galaxy S II is coming to T-Mobile. Except it's slightly more complicated than that. According to TmoNews, you're actually looking at the back of the new Samsung Hercules -- a handset rumored to possess godly specs, which we already knew was heading to both T-Mo and Telus, and which is now confirmed as an honest-to-goodness Galaxy S II variant. It's similar to the original superphone in many respects, but it has a slightly larger 4.5-inch Super AMOLED Plus screen like the Infuse 4G, a 1.2GHz dual-core processor that's possibly a Qualcomm instead of Sammy's own Exynos, and a 42Mbps HSPA+ radio. The rounded corners of the back cover also look distinctly similar to the Within -- the GSII variant coming to Sprint. You'll find full-frontals after the break, which also recall the design of the Nexus S. The only thing missing is any mention of NFC, which featured in the initial rumors, but this is still a hotch-potch of the best Samsung phones around and we can't wait for it to arrive.
T-Mobile loses 50,000 customers in Q2 2011, revenue dips slightly
T-Mobile USA issued its Q2 earnings statement today and, while the outlook isn't quite as bleak as it was during the first quarter of this year, there's still some cause for concern up in Bellevue. According to the report, the carrier lost a total of 50,000 customers last quarter, which is actually an encouraging sign, considering it dropped a whopping 99,000 during Q1, and 93,000 during the second quarter of 2010. Total revenues, however, dipped slightly to $5.1 billion from the $5.2 billion reported for the previous quarter, with service revenues holding firm at $4.6 billion -- a 1.7 percent decrease from Q2 2010. President and CEO Philipp Humm blamed the numbers on a "challenging market," but was quick to point out the brighter aspects of T-Mobile's statement, including the carrier's expanded 4G coverage, and the fact that a full 29 percent of its customers are using 3G or 4G smartphones -- an "all-time high." Skip past the break for more numbers and acronyms.
HTC Sensation 4G selling entirely too early at some Walmart stores
Remember HTC's announcement that Walmart would receive a three-day exclusivity in advance of the Sensation 4G's "official" June 15th arrival at T-Mobile? Apparently the head start wasn't sufficient for Wally World, as many associates are now passing this hot little number across the counter without batting an eye. While some employees appear to have gotten the June 12th memo, the point is moot because Walmart's point-of-sale computers are more than willing to process the sales. So, if you're able to track down an unknowing (or empowered) sales clerk, those HSPA+ dreams might come true sooner than expected -- for the low price of $148.88. Now, who's up for some Walmart Bingo?
Live from D9: AT&T Mobility CEO Ralph de la Vega takes the stage
Can you handle one more? Seriously? We're planted here in SoCal for the final day of D9, and we've got one more liveblog comin' your way. This go 'round, it's AT&T Mobility CEO Ralph de la Vega, and while we've no evidence whatsoever that it'll be talked about, we're guessing the proposed (and highly conversed) T-Mobile USA merger will be the primary topic of discussion. Join us after the break for the blow by blow, won't you?
HTC Sensation 4G available on T-Mobile June 15th for $200, hits Walmart 'as early as June 12th'
The foremost question in the hive mind of Android power users these days is typically whether to go with HTC's 1.2GHz, dual-core, 4.3-inch Sensation or the similarly specced Galaxy S II from Samsung. Of course, neither of those is actually out in the US yet, so if patience is not your favorite virtue, T-Mobile just made that decision for you. The carrier has announced it'll start selling the HTC Sensation 4G from June 12th at Walmart stores, after which it'll be "exclusively" available on June 15th from T-Mobile retail stores. Pricing is your typical $200 on a two-year contract after a $50 mail-in rebate. Samsung's superphone shouldn't be too far behind, but it does look like T-Mo subscribers will get a good few weeks to familiarize themselves with Sense 3.0 before having to hear any gloating about Super AMOLED Plus displays and 8.49mm slimness. PR after the break.
Nearly half a million customers left T-Mobile in Q1 2011
Not even promises of a new Sidekick can keep T-Mobile from hemorrhaging customers, it seems, as the company reported significant losses in its Q1 statement for 2011. According to official Q1 financials, 471,000 contract customers either failed to re-up, or outright canceled their contracts. Stacked against a shortcoming growth of just 372,000 prepaid customers (including MVNO customers for sub-carriers), T-Mobile suffered a net loss of 99,000 users, a 29-percent increase in losses over the same period for the previous year. Ouch. The firm chalked its loss to increased "competitive pressures," which lends credence to AT&T's insistence that Sprint and Verizon are such fierce opponents that it has to acquire T-Mobile for the magenta-tinted carrier to stay in the game. You can judge the profits and pitfalls for yourself -- just hit the source link for the full financials.
T-Mobile invites you to surf under the sun with new $40 2GB data plan, sunblock not included
T-Mobile has introduced a less expensive option for those who want internet on the go (and don't like spending all day at the coffee shop). The company's new plan, priced at $39.99 per month, offers customers 2GB of overage-free data access, which is throttled after the limit is reached. The service requires a standard two-year commitment, but existing voice subscribers will receive a 20% discount for the broadband package, effectively reducing the cost to $31.99. Of course, the usual taxes and surcharges still apply. If you're unsure whether mobile internet is right for you, T-Mo also offers month-to-month pricing, allowing you to test its HSPA+ service without the hassle of a long-term relationship. And in case you're looking for a little somethin' to serve up all this data, this little Hotspot might just do the trick -- as for the new plan, you'll find all the sordid details in the source link below.
T-Mobile G2x getting Gingerbread 'sooner than you'd expect,' may not be a quad-band handset
We found the T-Mobile G2x to be a gem of a phone, blessed with both a speedy dual-core chip and a near-complete lack of bloatware to keep you from enjoying its raw muscle, but it's hard to deny it would be better still with some crumbly Gingerbread toppings. If you feel the same way, then join us in celebration of some joyous news -- T-Mobile tweets that Android 2.3 is coming to the G2x "soon." The carrier's official Twitter feed adds that Gingerbread was already being tested on the device even before launch, but unfortunately doesn't dish on a potentially more somber situation -- we're hearing (and have found in testing) that the G2x may not actually be a quad-band HSPA+ handset, and we're having trouble getting an unlocked version to connect to AT&T's 3G network. We're currently awaiting comment, and will let you know what we hear. Update: T-Mobile has confirmed that the G2x is not a quadband HSPA+ device as originally advertised, and that the hardware only supports 3G bands I and IV (2100 and 1700MHz).
AT&T tells FCC just how important T-Mobile is, in 381-page redacted document
AT&T has many strategies for trying to convince the US government to let it buy T-Mobile, but the one it emphasized was this -- it would attempt to make remaining carriers Verizon, Sprint and even a handful of rural entities look like "intense competition." Well, it seems that tack hasn't quite had the impact that the board of directors was hoping for, because it just delivered a gigantic new document to the FCC, which portrays itself as the victim of its own success. AT&T says it had to deliver 8,000 times percent more mobile data in 2010 than it did three years prior -- over 10 petabytes per month these days -- and foresees that it will deliver that same amount of data "in just the first five to seven weeks of 2015." Meanwhile, T-Mobile is the knight in shining magenta armor to save AT&T from those "severe capacity constraints," but since AT&T can't let regulators think that T-Mobile's departure from the arena will result in less competition, Ma Bell simultaneously bashes its prospective conquest for having a "diminished market role" in the telecom industry and "no clear path to deploy LTE" -- even as it says that acquiring T-Mobile would result in the means to spread speedy Long Term Evolution across 97.3 percent of the general population. In case you're keeping track, that's up from the 95 percent the company last prognosticated. The seeming contradictions here are certainly amusing, but we have to admit the promised giant LTE network tempts us quite a bit. But is it worth building a GSM monopoly to do it? Envision the repercussions for yourself -- both good and ill -- by studying the following links. Update: Fixed a few math errors -- AT&T processed over 10 petabytes per month (not year) in 2010, and that was 8,000 percent (not times) the amount of mobile data it carried in 2007. For comparison's sake, the entirety of YouTube was said to have streamed 31 petabytes per month in 2008, and Hulu did 17 petabytes per month over the same time period, according to a Cisco study.
T-Mobile cancels Even More Plus unlimited plan on eve of launch?
Just when we thought T-Mobile was about to rock the world by offering bring-your-own-phone customers an insanely cheap unlimited plan, we're hearing that the company has strangled the $60 unlimited version of Even More Plus in the crib -- TmoNews snagged a supposed internal communique that claims the plan was canceled at the last minute. We just reached out to T-Mobile ourselves, however, and were told the reality is nothing of the sort: T-Mobile did not officially announce any rate plans yesterday, and the company doesn't comment on rumors or speculation. Today, T-Mobile officially announced a new, single-line unlimited plan that is available starting today for just $79.99 per month, with an Even More plan and a two-year contract. In other words, T-Mobile says it never sent out the previous press release (also originally obtained by TmoNews) at all. We're not sure who's telling the truth here, but either way, one thing's for certain -- there still won't be an $60 unlimited Even More Plus plan starting tomorrow morning. You're more than welcome to dry your tears with the $80 on-contract plan right now, though. PR after the break.
Shocker! Sprint officially opposes AT&T's proposed acquisition of T-Mobile
Yes, you read that right. Sprint is actually going out on a limb and officially opposing AT&T's proposed acquisition of T-Mobile USA. Apparently, it thinks that the transaction would "reduce competition and harm consumers" if it's allowed to go through, and it's vowing to "fight this attempt by AT&T to undo the progress of the past 25 years and create a new Ma Bell duopoly." It further goes on to note that the combined company would be almost three times the size of Sprint in terms of wireless revenue, and that it and Verizon would "overwhelmingly dominate" the US wireless industry and have "unprecedented control" over the post-paid market. Full press release is after the break.
Blio e-reading software still alive, will come preloaded on T-Mobile Android devices
Remember Blio? Yes, our memories of this colorful ebook-reading software are starting to fade too, but now T-Mobile's about ready to yank it from the shadows of obscurity with a newly announced partnership. Content provider Baker & Taylor will be responsible for installing the Blio Android app on "select future products from T-Mobile USA" and populating it with compelling content. The Blio store has grown to now encompass a healthy three million titles, both free and paid, and should you have the Windows version of its software, you'll get the sweet automation of having it sync with your mobile device as well. To get your reading started nice and early, jump past the break for the full press release.
LG Optimus 3D reveals T-Mobile 3G frequencies in visit to FCC
If you're an AT&T subscriber, you'll know this handset as the Thrill 4G. And if you happen to be a T-Mobile devotee (yes, those are two distinct groups until the AT&T&T-Mo merger is complete), you'll soon get a chance to familiarize yourself with it too, as it has just slipped through the FCC with support for AWS 3G. Specifically, the FCC has cleared an LG 920 smartphone, which a helpful video from LG itself informs us is the Optimus 3D -- the dual-core OMAP 4-powered Android powerhouse that's at the root of this entire affair. It'll probably get its own, uniquely ghastly moniker if and when it's launched by T-Mobile, at which point every US carrier bar Verizon will have a 3D smartphone on its books. How long do you think that omission will last? [Thanks, Christian]
Verizon Wireless CEO 'not interested' in buying Sprint, won't waste time opposing T-Mobile / AT&T merger
Well, isn't this just something. It only took Sprint a matter of hours (on a Sunday evening, no less) to push out a detailed list of gripes concerning the proposed AT&T / T-Mobile USA tie-up, but Verizon Wireless won't even be wasting its time. According to an interview with Reuters ahead of CTIA, VZW CEO Daniel Mead confessed that his company wouldn't be lobbying the FCC or any other entity to stop the inevitable, noting that "anything can go through if you make enough concessions." That's a pretty bold quote in and of itself, but of course, this is coming from the man who made an awful lot of those so-called concessions in order to pick up Alltel a few years ago. Continuing on, he blasted out this gem: "We're not interested in Sprint. We don't need them." In other words, there's nary a chance in Hades that America's current largest wireless carrier will be making a bid to keep it that way by shelling out for The Now Network. Why? Quite simply, he'd rather focus on being the most profitable US carrier rather than the largest. Not exactly what you'd expect coming from Verizon Wireless' CEO, but hey -- if he's down for the competition, we're down with watching from the sidelines.
Confirmed: AT&T wants to use T-Mobile's AWS spectrum for LTE buildout
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. For T-Mobile customers, that means that the repurposed AWS spectrum will eventually leave them without 1700MHz HSPA+, rendering the carrier's current line of 3G / 4G phones stuck on 2G; AT&T's recognizing that there'll be an equipment swap required eventually, but that's not really a concern for at least a year (assuming the deal goes through). 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.
T-Mobile answers its customers' most Frequently Asked Question: no iPhone
Never mind the practicalities of T-Mobile and AT&T using different 3G bands, Apple not having approved any deal for extended distribution of its phone, or the fact AT&T's acquisition of T-Mobile isn't set to complete for another year. The immediate reaction to AT&T agreeing to buy T-Mobile USA was to ask, "so that means the iPhone's coming to T-Mo, right?" Well, wrong. T-Mobile has delivered an FAQ on its site informing customers about the forthcoming transition, including the unequivocal notice regarding the iPhone: "T-Mobile USA remains an independent company. The acquisition is expected to be completed in approximately 12 months. We do not offer the iPhone. We offer cutting edge devices like the Samsung Galaxy S 4G and coming soon our new Sidekick 4G." So that settles that (for a year, anyway). In other news, service and billing won't be changing, and there's a promise that T-Mobile devices will continue to operate as they do now even after the acquisition is complete. Ominously, however, the company fails to answer its own question about pricing changes, stating only that it'll honor "all contracted plans that are entered into before the change of ownership."
AT&T agrees to buy T-Mobile USA from Deutsche Telekom for $39 billion (update)
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. %Gallery-119355%
T-Mobile G-Slate and G2x dual-core smartphone coming on April 20th?
LG, you big tease! T-Mobile must be feeling a tinge of regret for hooking up with the Korean hardware manufacturer lately, as TmoNews reports both the G-Slate tablet and a new G2x smartphone (believed to be the US moniker for the Optimus 2X) won't be coming Stateside for at least another month. Neither will be exactly late, mind you, since both feature dual-core Tegra 2 chips and the G-Slate runs Google's freshest Honeycomb software, however a launch date of April 20th does put LG a step behind its direct competitors. Motorola has already rolled out its own Xoom and Atrix alternatives, while Samsung is making noise about its new Galaxy devices, which might well beat LG's wares to the market. Rumor is we'll get an official date out of T-Mobile at CTIA next week, so keep your eyes peeled for that one.
Nokia C7 rumored for T-Mobile launch under Astound moniker, to cost $80 on April 6th
If you've been listening to the Engadget Mobile podcast lately, you'll know that we don't much like this trend of using verbs as phone names, but T-Mobile clearly hasn't gotten the message, as one of its upcoming handsets is rumored to be called the Astound. What exactly this rebadged Nokia C7 is supposed to astound us with, we're not really sure. We've seen its Clear Black Display already, which is very nice, but we've also seen the dead OS walking that is its Symbian installation. Still, for $80 on contract, it doesn't necessarily have to compete with the crème de la Gingerbread to be an appealing option. Look out for it early next month, waving the Magenta flag with pride.
