AT&T has announced that it has entered into an agreement with Deutsche Telekom to purchase T-Mobile USA for approximately $39 billion in cash and stock. According to AT&T, the move will allow for a significant expansion of the company’s 4G LTE coverage plans, bringing service to an additional 46.5 million people—including those in rural communities and small towns—and expanding overall deployment to reach 95 percent of the U.S. population.
As part of the agreement, Deutsche Telekom will receive an eight percent equity stake in AT&T, and a Deutsche Telekom representative will join AT&T’s board of directors. Notably, the agreement is still subject to regulatory approval.
“This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation’s future,” said Randall Stephenson, AT&T Chairman and CEO.
“It will improve network quality, and it will bring advanced LTE capabilities to more than 294 million people. Mobile broadband networks drive economic opportunity everywhere, and they enable the expanding high-tech ecosystem that includes device makers, cloud and content providers, app developers, customers, and more. During the past few years, America’s high-tech industry has delivered innovation at unprecedented speed, and this combination will accelerate its continued growth.”
Deutsche Telekom Chairman and CEO René Obermann said, “After evaluating strategic options for T-Mobile USA, I am confident that AT&T is the best partner for our customers, shareholders and the mobile broadband ecosystem.