AT&T plans bigger asset sale to save T-Mobile merger (USA)
AT&T is reportedly planning to divest a larger section of its assets in an attempt to save the $ 39 billion merger with T-Mobile. According to reports, with this asset sale AT&T aims to address the concerns raised by the Justice Department regarding lesser competition in the wireless market.
As per sources, the size of the asset sale could be as much as 40 percent of T-Mobile’s assets. However, according to industry reports, analysts believe that the asset sale may be tough for AT&T as the number of buyers for such a sale might be small.
According to reports, as per the agreement, AT&T would be liable to pay less than the deal’s original $39 billion value if regulators demand asset sales that surpass $7.8 billion. Further, sources claim that in the event that the deal does not take place, there is no way that AT&T would get out of paying Deutsche Telekom the $ 4 billion breakup fee.
FCC seeks hearing on AT&T and T-Mobile merger (USA)
The AT&T and T-Mobile deal face yet another obstacle as the Chairman of the Federal Communications Commission (FCC), Julius Genachowski, has reportedly asked the commissioners to forward the proposal to an agency judge for a hearing. Sources claim that agency officials believe that the merger could significantly diminish wireless competition.
According to reports, Larry Solomon, Senior Vice President, AT&T (corporate communications), has said that the FCC’s action was disappointing, adding that it is yet another example of a government agency acting to prevent billions in new investment and the creation of many thousands of new jobs at a time when the US economy desperately needs both.
As per sources, agency officials have said that the deal would lead to massive job losses as AT&T realizes savings and that the record at the FCC doesn’t show the merger would significantly spur the spread of wireless high-speed Internet service.
AT&T to record a cost of US$ 4 billion in the 4Q if T-Mobile merger fails (USA)
US mobile operators AT&T and T-Mobile have reportedly withdrawn their petition from the Federal Communications Commission (FCC) in an attempt to first win approval for the clearance of the deal from the Justice Department. Further, according to reports AT&T will record a charge of US$ 4 billion in the fourth quarter as pretax accounting costs to be paid to Deutsche Telekom as breakup fees in the event that the merger is not permitted to go through.
Sources claim that this move reveals that this move is AT&T’s way of taking charge for the cost in the likelihood of the merger failing. As per sources, AT&T has said that the $4 billion accounting charge includes $3 billion in cash and $1 billion in book value of wireless spectrum.
Company reports suggest that AT&T has said that both the operators are continuing to pursue the sale of Deutsche Telekom’s U.S. wireless assets to AT&T and are taking this step to facilitate the consideration of all options at the FCC and to focus their continuing efforts on obtaining antitrust clearance for the transaction from the Department of Justice.
AT&T and America Movil to offer IP services for corporates (Latin America)
America Movil, a leading wireless service provider in Latin America has reportedly tied up with American operator AT&T to offer IP services to large corporate organisations within Latin America as well as in Asia and the Middle East.
According to reports, the agreement between the two operators will allow AT&T to access America Movil’s networks across 15 countries in the region, whereas America Movil will be able to use AT&T’s network infrastructure to provide large corporate IP services in the US along with the rest of the world.
Sources claim that the two operators plan to offer multinational companies working in Latin America with a Virtual Private Network (VPN) as its primary offering. Further, Roman Pacewicz, senior vice president (marketing and global strategy), AT&T Business Solutions has said that as part of AT&T’s commitment to deliver consistent and seamless global services for their enterprise customers, they continue to evolve their strategy to establish alliances in key regions in the world which will in turn enable multinational companies to compete better globally.
T-Mobile saves up US$ 64 million cash for top management in anticipation of AT&T merger (USA)
U.S. based mobile operator T-Mobile, a unit of Deutsche Telekom, has reportedly been setting aside cash in an effort to retain its top management if the deal with AT&T is permitted to go through by the US government. According to reports, the network operator has already accumulated $64 million in merger-related employee costs for the past two quarters.
As per sources, AT&T originally hoped to finalize the deal by March 2012, however it recently delayed the date after the U.S. government intervened to block the merger citing unfair competition. As reported earlier by Wireless Federation, The Department of Justice has reportedly stated that the proposed $39 billion transaction would substantially lessen competition for mobile wireless telecommunication services across the United States, resulting in higher prices, poor quality services, fewer choices and fewer innovative products for the millions of American consumers who rely on mobile wireless services in their everyday lives.
Sprint introduces new 3G/4G mobile broadband plans (USA)
America based mobile network operator, Sprint, has reportedly launched new 3G and 4G mobile broadband plans, delivering an increased amount of data at lower rates than its rival carriers. According to reports, customers can choose from 6GB of combined on-network 3G/4G data usage for $49.99 per month or 12GB of 3G/4G data usage for $79.99 per month. The new plans reportedly deliver 20 percent more data for the same price as similar plans from Verizon and AT&T.
As per sources, Will Souder, Vice President (Pricing), Sprint has said that the company is committed to delivering exceptional value to its customers, and their new 3G/4G Mobile Broadband plans are the latest example of that. He added that Sprint gives customers more data at lower prices than competitors, so they can do more with their mobile broadband devices on Sprint’s 3G and 4G networks.
Company reports reveal that the $49.99/6GB and $79.99/12GB plans are compatible with all Mobile Broadband devices sold by Sprint, including tablets, dedicated mobile hotspot devices, USB modems, netbooks and notebooks. Further, Sprint is also launching a new plan available for tablets and dedicated mobile hotspot devices priced at $34.99 per month for 3GB of 3G/4G data usage, along with a new plan for tablets priced at $19.99 per month for 1GB of 3G/4G data usage.
AT&T launches free mobile VoIP app (USA)
American multinational telecommunications corporation, AT&T has reportedly introduced a free mobile VoIP (Voice Over internet Protocol) app titled ‘AT&T Call International’ that allows users to make long distance international calls at low rates. Sources suggest that the app not only enables users to make international calls from the U.S. at low rates, but also use the discount by making calls over Wi-Fi when abroad.
According to reports, the operator has said that the app provides simple, step-by-step instructions to establish an AT&T Call International account, on completion of which, customers would be able to make international calls through the app which would be billed directly to the customer’s credit card.
As per sources, AT&T’s app is currently available only for the iPhone, BlackBerry and Android smartphones.
More than 50% of Sprint’s subscribers utilize government’s ‘Lifeline’ service (USA)
Research reports reveal that over 50 percent of American based mobile operator, Sprint’s, net new subscriber additions utilize ‘Lifeline’, a government subsidy program, offering Americans with low-income free wireless minutes every month. According to reports, the service, termed as ‘Assurance Wireless’ by Sprint, enables the operator to earn revenue as and when these users cross their monthly minutes, apart from the government subsidies.
As per sources, Verizon Wireless and AT&T are also offering users similar offers. John Carney, Sr. Vice President (consumer marketing), Sprint has reportedly said the operators would not have targeted such low-income customers, had they not been offered the subsidies. Sources speculate that the number of Assurance Wireless users for Sprint may be nearing 2 million.
Industry analysts say that many users prefer the Lifeline option as the amount paid is much lesser than a fixed-line bill, even if the users crosses the number of minutes for the month. Further, as per reports, Sprint’s Assurance Wireless brand has earned between $50 million and $75 million as yet this year.
Apple offers iPhone 3GS free when taken with a contract (USA)
Apple Inc. had reportedly slashed the price of its iPhone 3GS model to zero when purchased with a contract, with the launch of its latest iPhone 4S last month. According to reports, industry analysts believe that this move could help Apple in competing with the lower range devices running on Google Inc.’s Android software, without negatively affecting its profits.
While sources say that the two year old iPhone 3GS does not include the latest features such as the voice-activated assistant Siri, offered in the iPhone 4S, users would still prefer it over most of the rival handsets being offered in the market for the similar price.
As per reports, wireless carrier AT&T, which is the only operator selling the iPhone 3GS, sold out its entire stock of the handset after the price change was implemented saying that there has been tremendous demand for the same. Currently, Apple is selling its iPhone 4S between $199 and $399 while the iPhone 4 is being sold for $99. As per sources, Apple reported a total revenue of $11 billion from iPhone sale last quarter.
AT&T increases LTE presence, launches Samsung Galaxy Skyrocket LTE handset (USA)
AT&T, America’s leading mobile phone operator, has announced the launch of its first 4G LTE Android phones, expected to be made available this month. According to reports, AT&T plans to launch the Samsung Galaxy Skyrocket, an upgraded version of the Samsung Galaxy S II, which will be priced at $250 with a contract. Further, AT&T also plans to launch the 4G LTE services in Boston, Washington, Baltimore and Athens, on the same day.
As per reports, the Samsung Galaxy S II Skyrocket comes with a 4.5-inch SuperAMOLED Plus display and has a resolution of 800 by 480 pixels. The device is powered by a 1.5 GHz dual-core processor, an 8 mega-pixel camera with 1080 HD video recording and runs on the Android 2.3.5 also known as ‘Gingerbread’.
While some feel that the phone is priced towards the higher-end of the LTE Android phones others are of the view that considering the specs of the phone, the price is justified. However, industry sources say that AT&T’s network coverage which covers a total of nine markets including the four new markets is still not extensive enough for the users. In response to this Mari Melguizo has reportedly said that they expect to have 15 LTE markets live by the end of the year.
