By now you probably have heard AT&T has bought T-Mobile. The financial details don’t really matter, what does matter are the little details. AT&T most likely bought T-Mobile to get some more spectrum, get a larger userbase, and get the valuable 4G network that T-Mobile has been building.
Don’t expect T-Mobile pitch woman to go anywhere just yet, the company said. T-Mobile is playing it safe, just in case the deal doesn’t get approved by the powers that be. “The ads continue to evolve as planned”, said T-Mobile spokesman Reid Walker. “Until the deal is completed, which could take up to a year, we are operating as usual — an independent company and our marketing strategy remains in place”.
The spectrum problem
AT&T’s press release tells a very clear story of why AT&T bought T-Mobile and why T-Mobile bought AT&T. It’s no secret that AT&T has a tattered reputation. The iPhone may have brought it millions of new customers and billions in revenue, but the vast increase in data usage has also strained the network to unacceptable levels.
There wouldn’t have been so much hype surrounding the Verizon iPhone if AT&T’s network didn’t drop so many calls and upset so many customers. And while AT&T is investing billions to upgrade its network, it takes years to get the approval to build new towers, especially in metropolitan areas such as San Francisco. Without a dramatic move, AT&T’s network wasn’t going to get better anytime soon.
AT&T may be talking a lot about 4G in its press release, but T-Mobile has no LTE technology or infrastructure to offer. No, today’s acquisition is all about bolstering AT&T buys T-Mobile network and beginning the process of repairing its reputation.
