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Judge to reconsider DoJ's AT&T antitrust suit
Late last month AT&T withdrew its application with the FCC to acquire T-Mobile, in an attempt, it said, to focus on winning approval from the Department of Justice, first. Now a district court judge is considering dismissing the US' antitrust suit against ole Ma Bell. According to Bloomberg, the DoJ is looking to either "withdraw without prejudice" or "stay" the suit, as a result of AT&T pulling its application from the FCC. Judge Ellen Segal Huvelle scheduled a hearing for December 15th to decide whether the deal is still possible in the proposed timeframe and the suit still worth pursuing. She had this to say: We don't have any confidence that we are spending all this time and effort and the taxpayers money and that we're not being spun. The landscape has changed. AT&T's lawyers remained steadfast, however, demanding the company's "day in court," and reiterating that approval from the DoJ would improve its chances of getting the thumbs-up from the FCC. For more sordid details on this legal ping-pong match, hit the source link below.
AT&T, Deutsche Telekom withdraw FCC application for T-Mobile merger, look toward DoJ
Now that FCC Chairman Julius Genachowski has called for an administrative hearing on AT&T's proposed buyout of T-Mobile, the two parties have decided to formally withdraw their application to the Commission. The confirmation came today, with an announcement from AT&T and Deutsche Telekom, which owns T-Mobile USA. In a statement, the two companies reiterated their commitment to the deal, adding that they're looking to receive final approval from the DoJ: "This formal step today is being undertaken by both companies to consolidate their strength and to focus their continuing efforts on obtaining antitrust clearance for the transaction from the Department of Justice." AT&T also reaffirmed that it would incur a $4 billion hit should the deal fall through, and that it expects to take out a pretax charge for that amount during the fourth quarter of this year. Of course, Genachowski's decision must still obtain approval from the full Commission, but it certainly looks like both parties are gearing up for a courtroom battle.
SIM-based NFC gains global support from 45 mobile carriers, all huddled around GSMA's standard
You knew that NFC hardware can be embedded into SIM cards, right? Right? Regardless of whether you've been paying attention, the practice is about to become a whole lot more common, as 45 of the world's largest mobile operators have extended their support for the GSM Association's standard. Among the networks, you'll find heavy hitters such as China Mobile and China Unicom (which account for nearly 800 million subscribers between the two), along with familiar names such as America Movil, AT&T, Deutsche Telecom, KPN, Orange, Rogers, SFR, SK Telecom, Softbank, Telus, Verizon and Vodafone. Even Isis, the unholy mobile payment lovechild of AT&T, T-Mobile and Verizon, has pledged its support... in hopes of taking your money, that is. The new standard is expected to drive the proliferation of NFC across the globe, with Anne Bouverot, Director General of the GSMA commenting, "Mobile operators, working together, are ideally positioned to roll out services based on the requirements published by the GSMA, providing proven security and interoperability, global reach and customer care for consumers and businesses and a secure platform for service providers." Now, as you'd expect, we just wanna see it happen. For a complete list of the cooperating carriers, check out the PR after the break. [SIM card photo via Shutterstock]
Some German customers receive iPhone 4S handsets early
At least one iPhone 4S slipped through the hands of Apple and landed in the hands of a German customer a few days before the October 14th date. The lucky user promptly unboxed it and fired up Siri. You can check out the photos at Macerkopf.de. US customers are still sitting on the sidelines waiting for their shipments to make it from the warehouse to their front door. Most Sprint customers have received shipping notices, while other carriers are still in limbo waiting for their handset to start moving. If you ordered the iPhone 4S early on the first day, you should rest easy as you will avoid all the lines and have the phone in your hand by the end of the day. [Via Macstories]
AT&T asks court to dismiss lawsuits filed by Sprint and C Spire Wireless
Well, look at Ma Bell now, wishing it'd all just go away. Tied up in lawsuits, the company has filed motions to dismiss the two complaints brought by Sprint and C Spire Wireless (formerly Cellular South), which seek to block AT&T's acquisition of T-Mobile. In the filings, it's argued that the two providers represent their own interests, rather than that of the public. AT&T further reveals that C Spire had pursued private negotiations prior to the lawsuit, where the regional provider agreed to support the merger "if AT&T would agree not to engage in facilities-based competition in Mississippi." Ma Bell goes on to state, "This inappropriate proposal confirms that what Cellular South fears is competition, not lack of competition." Given the latest maneuver (which smacks heavily of PR spin), there's no doubt that lawyers for Sprint and C Spire will have a bit of homework for the weekend.
Cellular South files antitrust lawsuit against AT&T over proposed T-Mobile takeover
Sprint and Uncle Sam aren't the only ones taking issue with AT&T's proposed acquisition of T-Mobile, because Cellular South has a bone to pick, as well. Yesterday, the provider filed a lawsuit against AT&T in a DC federal court, charging that its $39 billion merger with T-Mobile would violate US antitrust laws. "The merger of AT&T and T-Mobile is anti-competitive, and will result in consumers facing higher prices, less innovation, fewer choices and reduced competition," Cellular South said in a complaint. The company went on to argue that legal evaluation of the merger must incorporate the perspectives of smaller, regional carriers who, like Cellular South, will "find it harder to secure both wireless devices at competitive prices and times and nationwide roaming." An AT&T spokesman declined to comment on the case, but you can find more details about it at the source link below, or in the full press release, after the break.
AT&T files response to DOJ suit, says regulators just don't understand
It's no secret or surprise that AT&T is unhappy with the DOJ's decision to try and block its merger with T-Mobile. But issuing public statements is one thing, officially filing papers in court is another. Ma Bell submitted a 25-page document arguing that the Justice Department's claims represent a misunderstanding of the market and dismisses competition from "innovative upstarts," like MetroPCS and US Cellular. AT&T's lawyers point out that T-Mo, currently the fourth largest provider, has been losing customers for years and it's German parent company may not be inclined to invest much in improving it. By contrast, AT&T has spent $30 billion over the last two years to boost network quality and capacity, yet still struggles to keep up with demand. We can't say the arguments are without validity, but the government's fear of a market dominated by just three companies with little incentive to innovate or drive down prices also seems well founded. Well, the pageantry officially gets underway on September 21st, when the US District Court hearings begin.
Deutsche Telekom taking next-gen iPhone pre-orders
Deutsche Telekom (DT) has begun taking pre-orders for the so-called "iPhone 5," the next generation of Apple's immensely popular smartphone. Here's the odd part: it has barely more information than you or I do. A spokesman for the carrier confirmed to Bloomberg that it's taking pre-orders as of today. Deutsche Telekom is concerned with supply shortages, and wants to help its customers secure one of the little guys. DT admits that it does not now when the iPhone will be released, what it will be called (the Internet has dubbed it "iPhone 5," but Apple could call it "Shirley" for all we know), what the features will be and so on. Still, those who must ride the bleeding edge (in the dark even) have their chance.
Microsoft, Facebook, RIM, and others write to the FCC in support of AT&T-Mobile merger
FCC Chairman Julius Genachowski has mail. It's only a page and a paragraph long, but the letter he's received this week has much gravitas attached to it, coming as it does from a select group of the tech industry's biggest companies, all of whom are lending their support to AT&T's proposed acquisition of T-Mobile. Of the eight new proponents of the deal, Microsoft, Facebook and Yahoo form a sub-group of software / web content distributors, whereas Qualcomm, RIM, Avaya, Brocade, and Oracle will have been motivated to speak up because they see the takeover as expanding opportunities to sell their mobile and networking hardware. The entire octet agrees that the melding of AT&T and T-Mobile's networks into one is a requisite move for broadening mobile broadband availability in the US and for keeping the country competitive with the rest of the world. In their words, "an increasingly robust and efficient wireless network is part of a virtuous innovation cycle." Virtuous for them, perhaps, but what about consumers faced with an increasingly binary choice of mobile carrier? Who shall protect their virtue?
The AT&T / T-Mobile senate hearing: deciphering the war of words
Over the course of the next year, AT&T and its opponents will be in the ring, duking it out in a war of words in attempt to convince the government that a $39 billion takeover of T-Mobile by AT&T should or should not take place. Consumers have the most to win or lose here, yet we are resigned to watching from the sidelines as both sides lob countless facts and stats at each other like volleys in a tennis match. If you look at the merger process as a stairway to climb up, AT&T is still near the very bottom. Every rung will be full of intense scrutiny as it is: if the two companies are allowed to merge, the national GSM market becomes a monopoly, and the wireless industry as a whole would shift to only three national players plus a handful of less-influential regional carriers. The carrier's going to blow as much as $6 billion if the merger is not approved -- almost enough to buy Skype -- it can't just expect to put up some feel-good facts and stats to win the hearts of the decision-makers. AT&T has to be absolutely sure it'll come out victorious in the war, else it risks losing the trust (and money) of its shareholders. But to accomplish such a feat, it has to be on top of its game. There was no better time to show off what it's made of than last week's Senate Judiciary Committee hearing conducted by the Subcommittee on Antitrust, Competition Policy and Consumer Rights. When the Committee entitles a hearing "Is Humpty Dumpty Being Put Back Together Again?," it's either exercising a sense of humor or a preconceived notion of the merger due to the implication that Ma Bell is simply reforming. CEO Randall Stephenson appeared as a sacrificial lamb, going before Congress and his opponents to explain his side of the story, answer hardball questions, and endure a hard-hitting round of criticism. Continue reading as we take you topic by topic and examine what he -- and his opponents -- had to say about the merger.
Reuters: a failed takeover of T-Mobile would cost AT&T as much as $6 billion
AT&T's proposed acquisition of T-Mobile was a big deal as soon as it was announced, but now Reuters has unearthed some more context to lend it even more cruciality. We already knew that in the event of AT&T&T-Mobile failing to garner regulatory approval, AT&T would owe Deutsche Telekom, the current owner of T-Mo USA, $3 billion in cash, some spare AWS spectrum, and a roaming agreement "on terms favorable to both parties." Reuters' sleuths say that the spectrum in question is worth $2 billion and the roaming deal a further $1 billion, bringing the total breakup payout to a hair-raising $6 billion. Given the wording of the two companies' deal, we don't expect the roaming part of that settlement would be free for T-Mobile (so $6b looks to be a bit of an over-estimation), but the fact remains that AT&T is staking a whole lot of moolah on this takeover going through. Whether it does or not, Deutsche Telekom's René Obermann (above left) looks assured to still be laughing this time next year -- but will the same be true of AT&T's Randall Stephenson?
T-Mobile and Orange get cozy, go shopping together
Following a good lean in their office chairs, decision-makers from Deutsche Telekom and France Telecom have made good on their February announcement to explore network sharing strategies, revealing they will combine their purchasing in a 50 / 50 joint venture. Buyers from Bonn and Paris will now collaborate on the procurement of consumer devices, network equipment, service platforms and IT infrastructure, with the companies expecting to save €1.3 billion from their efforts. They foresee this coordination creating more effective relations with suppliers, and benefiting customers through harmonized technology across networks. While the deal still needs regulatory approval, this isn't the first time the operators have gotten friendly, having previously merged T-Mobile and Orange in the UK. There's nothing like cooperation to get an edge on the competition, right? Get the full PR after the break.
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 CEO Philipp Humm issues non-denying non-confirmation of Sprint buyout discussions
Did last week's rumors of a T-Mobile merger with Sprint leave you wondering what color you'd get if you mixed magenta with yellow? T-Mo CEO Philipp Humm has stopped short of digging out his mixing tool to show you, but neither is he denying that such a mix-up could happen. His memo, sent to company employees and summarily leaked to the world, says that parent company Deutsche Telekom "will always explore options for maximizing the value of its portfolio and profits." However, he doesn't indicate exactly which avenues DT is exploring to find those profits.
Deutsche Telekom thinking of merging T-Mobile USA with Sprint?
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 claims Apple will support near-field communication e-wallet
Fun things are afoot at the Mobile World Congress this week in Barcelona, Spain. Today's news comes from Deutsche Telekom, the parent company of cell carrier T-Mobile. The corporation announced that it's rolling out the ability to make payments with a near-field communication (NFC) enabled smartphone starting this year. Throughout 2012, the full payment system will be rolled out in the US through a previously announced joint venture with Apple and Verizon. The system, to be known as T-Mobile's Mobile Wallet, will let users make payments simply by waving an NFC-equipped phone near a payment kiosk. The company believes that mobile payments that replace cash, such as buying a 72-ounce Slurpee at the local Kwik-E-Mart, are going to be the most popular form of transaction, followed by the ability to use the Mobile Wallet to pay for ticket transactions on public or private transportation. Some of the other capabilities of Mobile Wallet include the ability to get customized coupons on your phone and support for loyalty programs, such as supermarket discount cards. Since losing an NFC-equipped phone would be akin to losing a wallet, security features are included to protect against phone theft or loss. There's no word on whether the NFC capability will be built into future iPhones or if a special case will be required. [via Engadget]
Deutsche Telekom rolling out NFC payments with T-Mobile USA, other markets this year; NFC iPhone along for the ride?
At its press conference at Mobile World Congress today, Deutsche Telekom -- the German parent of T-Mobile subsidiaries around the world -- mentioned that it'll start launching NFC payment systems in handsets across multiple markets starting this year with full deployments in 2012. T-Mobile USA will be included in the action through the Isis initiative announced in late 2010 in partnership with AT&T and Verizon, but here's where it gets particularly interesting: DT execs apparently name dropped Apple during the live event for a 2011 launch. Of course, there's no shortage of rumors that the next-gen iPhone will include some manner of NFC capability, and it certainly seems like an Apple endorsement would work wonders in taking the technology to a new level of consumer acceptance. Follow the break for the full press release -- it doesn't mention Apple, interestingly, so it's entirely possible that this was an executive slip-up. More on this as we have it. Update: Rich from Phone Scoop wrote in to let us know that the Apple mention was in a slide deck handed out during the conference, not verbalized by executives. Interesting!
Lufthansa launches in-flight WiFi on intercontinental flights, ushers in 'the future'
There's just no two ways about it: what Lufthansa has managed to accomplish here is nothing short of incredible. While avid jetsetters have been enjoying in-flight WiFi on (select) domestic routes for a few years now, the in-flight fun has been coming to an abrupt halt when boarding a flight requiring a passport. The dream of long-haul in-flight internet has felt like a distant one, but it seems that the future is indeed happening today. The carrier's FlyNet service has been relaunched this week, and with assistance from Panasonic and the 802.11n gods that be, it's now offering broadband internet access on intercontinental routes. At first, the service will be limited to select North Atlantic routes, but access should be available on "nearly the entire Lufthansa intercontinental network by the end of 2011." No specific performance figures are being released, but the company does call it "extremely fast" and quick enough to open large attachments "without delay." Better still, the airline will be enabling cellphone data access (GSM and GPRS) in the spring of next year, giving highfalutin' bigwigs the ability to send and receive the most expensive text messages of their life. Deutsche Telekom will be providing the actual internet service, with pricing set as such: €10.95 (or 3,500 miles) for one hour or €19.95 (or 7,000 miles) for a 24-hour pass that also allows patrons to access the web on "on all Lufthansa connecting flights equipped with a hotspot during the period of validity as well as after the flight in Lufthansa lounges." Oh, and did we mention that it's totally free through January 31st, 2011? It is. Update: We're seeing expected uplink rates of 1Mbps, with download rates reaching 5Mbps. Not bad for being over an ocean. %Gallery-109227%
AT&T, T-Mobile, and Verizon announce Isis national mobile commerce network
Just in time for the total economic collapse of Europe and the rise of the cyber-nomadic tribes, the kids at Discover, Barclaycard, AT&T, T-Mobile, and Verizon have a name for their mobile phone-based payment system: Isis. Essentially it remains what we heard from Bloomberg a few months back: a system for using an app on your phone to send payments to a POS system using NFC technology. The Isis team thinks it has "the scope and scale necessary to introduce mobile commerce on a broad basis," and we wish them the best. But we know how it all ends anyways: with the lucky among us dead, and the rest of us living in caves, hiding from death-dealing robots, and bartering for what we can't scrounge from the ruins of our once-great cities. PR after the break.
Microsoft announces ten Windows Phone 7 handsets for 30 countries: October 21 in Europe and Asia, 8 November in US (Update: Video!)
It may have "Windows" in the branding, but Windows Phone 7 is not the desktop PC experience shoehorned into a cellphone. Microsoft tried that with Windows Mobile... and we all know how that turned out. Today, eight months after the Windows Phone 7 OS unveiling in Barcelona, we're finally seeing the official launch of the retail hardware: nine new WP7 handsets, some available October 21 in select European and Asian markets and others from early November in the US. The phones will find their way to over 60 cellphone operators in more than 30 countries this year. Microsoft tapped Dell, HTC, LG, and Samsung to deliver the Snapdragon-based handsets with a carrier list that includes AT&T, T-Mobile USA, Vodafone, TELUS, América Móvil, Deutsche Telekom AG, Movistar, O2, Orange, SFR, SingTel, and Telstra. And that's just for the first wave -- Microsoft has even more handsets coming in 2011 including the first for Sprint and Verizon in the US. Here's the lineup of 480 x 800 pixel (WVGA) phones announced today: HTC 7 Surround -- The 3.8-inch T8788 with slideout speaker for AT&T and Telus HTC HD7 -- Schubert comes of age as a 4.3-inch HD2 cousin for T-Mobile and beyond HTC 7 Trophy -- the 3.8-inch Spark headed to international carriers HTC 7 Mozart -- another heavily leaked int'l player with 3.7-inch display Dell Venue Pro -- 4.1-inch portrait QWERTY slider for T-Mobile we broke as Lightning Samsung Focus -- AT&T's 4-inch Super AMOLED slate we broke as Cetus Samsung Omnia 7 -- the i8700 is a 4-inch Super AMOLED jobbie for Europe LG Optimus 7/7Q -- the E900 is the official 3.8-inch global workhorse LG Quantum -- AT&T's 3.5-inch landscape slider first seen as the C900 HTC 7 Pro -- a 3.6-inch QWERTY slider for Sprint (2011) "Glance and Go," is the slogan Microsoft is using to differentiate itself from an already crowded smartphone market. Something we've already seen alluded to in that leaked AT&T ad. As Ballmer notes, "Microsoft and its partners are delivering a different kind of mobile phone and experience - one that makes everyday tasks faster by getting more done in fewer steps and providing timely information in a 'glance and go' format." He's referring to WP7's customizable Live Tiles, of course. Xbox Live integration is another biggie with EA Games just announcing its first Xbox Live-enabled wares coming to Windows Phone 7 in the fall including "Need for Speed Undercover," "Tetris," "Monopoly," and "The Sims 3." The other big differentiators are the slick Metro UI, integrated support for Zune media and Zune Pass subscriptions, Bing search and maps, Windows Live including the free Find My Phone service, and Microsoft Office Mobile. Now quit stalling and jump past the break for the full list of handsets per carrier and country. Update: Added the official WP7 overview videos after the break.
