T-Mobile selects Ericsson and NSN for $4 billion 4G network plan (USA)
T-Mobile USA, Inc. announced multi-year agreements with Ericsson and Nokia Siemens Networks (NSN) to support T-Mobile’s $4 billion 4G network evolution plan, including network modernization and deployment of long term evolution (LTE) service in 2013.
As part of the agreements, Ericsson and Nokia Siemens Networks will provide and install state of the art, Release 10 capable equipment at 37,000 cell sites across T-Mobile’s 4G network, increasing signal quality and enhancing performance beginning in 2012. T-Mobile also expects to be the first carrier in North America to broadly deploy antenna integrated radios, enabling accelerated deployment and reduced site loading.
Last week, T-Mobile secured the AWS spectrum licenses from AT&T which were agreed to as part of the breakup of the proposed merger between the two companies. This new spectrum, in addition to the refarming effort, enables the launch of LTE in AWS spectrum and up to 20 MHz of LTE in 75 percent of the top 25 markets.
Neville Ray, chief technology officer, T-Mobile USA, said that they are making great progress on their four billion dollar 4G network transformation. With these partners on board and the AT&T AWS spectrum secured, they are on track to enhance their 4G experience this year and deliver nationwide LTE in 2013.
The company’s timing for LTE allows T-Mobile to take advantage of the latest and most advanced LTE technology infrastructure, improving the overall capacity and performance of its 4G network, while optimizing the company’s spectrum resources. T-Mobile will also apply deep LTE technology experience gained from its parent, Deutsche Telekom, a recognized global leader in LTE development and standardization.
As part of the company’s network modernization effort, T-Mobile also plans to launch 4G HSPA+ service in the 1900 MHz band in a large number of markets by the end of the year. Network modernization trials have shown up to a 33 percent increase in HSPA+ data speeds as well as improved in-building coverage. Rolling out 4G HSPA+ services in the 1900 MHz band will also provide customers with the ability to use a broader range of devices, including the iPhone, on T-Mobile’s 4G network.
T-Mobile also announced that its nationwide HSPA+ network has expanded to deliver a competitive 4G experience to well over 220 million people in 229 markets. In addition to an expanding 4G footprint, the 4G experience T-Mobile provides is pervasive among its customer base.
Ray said that in contrast to their competitors, nearly half of T-Mobile’s postpaid smartphone customers are using a 4G device. Not only are they delivering a fast 4G experience to a higher percentage of their customers, they are also making it more affordable to step up to 4G.
Beginning today, customers in Little Rock, Ark.; Hattiesburg, Miss.; Springfield, Mo. and Madison, Wis. can experience the fast speeds available on America’s Largest 4G Network. Customers in Fayetteville and Little Rock, Ark.; Lake Charles, La. and Springfield, Mo. can experience the faster speeds offered by our HSPA+ 42 network with devices such as the recently launched HTC One S. Current customers are experiencing average speeds approaching 8 Mbps with peaks up to 22 Mbps using T-Mobile’s HTC One S.
Deutsche Telekom may discuss T-Mobile deal with MetroPCS (USA)
Telecom operator Deutsche Telekom AG is said to be in discussions with MetroPCS Communications for a possible merger of its T-Mobile USA, in an attempt to find a solution for the customer-losing business, according to a report by BN.
As per the report, Deutsche Telekom is considering a stock-swap transaction that would give the German company control over the combined entity, which would be publicly listed. Following the cancellation of the $39 billion merger between T-Mobile and AT&T, Deutsche Telekom has been on the lookout for other options to protect its business.
MetroPCS rose as much as $1.89 to $8.45 and was up 24 percent as of 12:28 p.m.
Three delays mobile payment platform launch (UK)
Three leading telecom operators in UK had come together to offer customers a common platform for mobile payment services. As reported earlier, mobile operators Everything Everywhere, O2 and Vodafone revealed plans to offer consumers a common platform, enabling them to pay for goods and services using their mobile handset.
However, according to reports, mobile operator Three has opposed these plans, stating that such a move is discriminatory, as it was excluded from the same. The plan, which has been forwarded to the European Commission for approval, may be delayed owing to this opposition.
Stephen Lerner, regulatory affairs director at Three, said that the JV will control and sell access to over 90 per cent of UK mobile subscribers and their data, thus allowing Deutsche Telekom, France Telecom, Vodafone and Telefónica to foreclose the market to third-parties and neatly do away with the inconvenience of competing with each other.
He added that they will continue to work with the competition authorities in Europe and the Office of Fair Trading in the UK to ensure that consumers benefit from the development of a competitive market for these services.
Deutsche Telekom to review UK business venture (UK)
Deutsche Telekom AG is pondering over the options to call it quits in the UK market. Exit options are being considered by the Deutsche Telekom due to the requirement of additional funds, as it was unsuccessful in selling its T-Mobile USA unit.
The company needed to raise funds for reducing its debt by US$17 billion and had the plans to repurchase its own shares worth US$ 6.5 billion. Deutsche Telekom also needs funds to upgrade fiber and wireless networks in Germany and other European markets. The deal between Deutsche Telekom and AT&T Inc. to sell off the T-Mobile for $39 billion was cancelled due to the disapproval by the regulatory authority.
As per sources, the company is eyeing options to sell out Everything Everywhere, a joint venture with partner France Telecom and planning to look out for a third-party buyer for the entire operator. Everything Everywhere’s effort to move its clients from short term contracts to larger ones, resulted in a 4.3 per cent decline in third-quarter company sales.
With all the speculations in the background, Deutsche Telekom is looking forward to upgrade the operational performance prior to any decision on sale, as it has still not appointed any investment banks for suggestions on the exit option. However, the company has cleared the air and has confirmed that it has no plans to exit the UK market and has a strong foothold amongst its competitors. However, France Telecom refused to comment on the issue.
Telefonica and Deutsche Telekom ink network sharing agreement (Germany)
Telefonica Germany and Deutsche Telekom have entered into a long term network sharing agreement with one another. According to company reports, Telefonica Germany will use Deutsche Telekom’s network infrastructure in the future to set up 2,000 Telefonica’s fiber aggregation points so as to transmit data faster and with greater capacity.
René Schuster, CEO, Telefónica Germany, has said that the agreement with Deutsche Telekom gives them the opportunity to be cost efficient, fast and flexible in a rapidly growing market. Schuster added that they offer the best quality in one of the most advanced mobile networks in Europe.
Further, with this agreement, Telefonica Germany hopes to increase the data speed at the UMTS and LTE stations in the future.
AT&T terminates bid for T-Mobile merger (USA)
Wireless carrier AT&T’s long lasting battle to acquire Deutsche Telekom’s T-Mobile has finally come to an end, with both operators having mutually agreed to terminate the deal. The news, while being a setback for AT&T, has been greatly welcomed by the industry as a whole which believes that this outcome is beneficial for the consumers. As per the agreement, AT&T will be required to pay Deutsche Telekom a pretax breakup fee of US$ 4 billion in the fourth quarter of 2011. Further, company reports reveal that the operator is planning a mutually beneficial roaming agreement with Deutsche Telekom.
According to reports, Randall Stephenson, Chairman and CEO, AT&T has said that the operator will continue to be aggressive in leading the mobile internet revolution. He added that over the past four years they have invested more in their networks than any other U.S. company. As a result, they deliver best-in-class mobile broadband speeds connecting smartphones, tablets and emerging devices at a record pace and are well under way with their nationwide 4G LTE deployment.
Stephenson also said that policy makers would be required to enact legislations to meet the country’s long term needs as well as allow the free markets to work so that additional spectrum is available to meet the immediate needs of the U.S. wireless industry.
German government concerned over regulatory opposition for AT&T merger (Germany, USA)
The German government which holds a 32 percent stake in Deutsche Telekom has reportedly voiced concerns regarding the regulatory hurdles for the US$ 39 billion deal with AT&T. According to reports, the government believes that the continuous opposition may cause the merger to fail.
The deal has been opposed by both the Department of Justice as well as the Federal Communications Commission (FCC) on the grounds that such a merger would have a significant impact on the competitive level of the wireless market and lead to job loss. AT&T has recently been working on a new strategy wherein it plans to sell a large portion of T-Mobile’s assets for which it has been contacting potential buyers, in an attempt to persuade the Justice Department.
In the event that the deal does not go through, AT&T would be required to pay Deutsche Telekom a breakup fee of US$ 4 billion. The two operators had proposed the merger on the grounds that the deal would help improve the network quality as well as provide users with high-speed internet access.
AT&T may seek legal action against FCC (USA)
US based mobile operator, AT&T has reportedly threatened to sue the Federal Communications Commission (FCC), in the event that the agency does not permit the operator to withdraw its application to purchase T-Mobile for $ 39 billion.
According to reports, Wayne Watts, General Counsel, AT&T has said that they have every right to withdraw their merger from the FCC, and that the agency has no right to stop them. He added that the FCC is obligated by its own rules to honor AT&T’s move to rescind its application to acquire T-Mobile USA Inc., and that any deviation from the procedure would be challenged by them in the court.
As reported earlier by Wireless Federation, mobile operators AT&T and T-Mobile withdrew their applications for the merger after the Chairman of the FCC, Julius Genachowski, had asked the commissioners to forward the proposal to an agency judge for a hearing. As per sources, the members of the FCC said that the deal would lead to a loss in jobs as well as lesser competition in the wireless market.
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.
