T-Mobile Does Not Have An AT&T Contingency Plan

Posted: Sep 1 2011, 2:26pm CDT | by , in News | Android


T-Mobile Does Not Have An AT&T Contingency Plan

Carrier will be lost in the dark if deal falls through

All eyes are on the pending buyout deal between AT&T and T-Mobile. The acquisition offer, announced earlier this year, would create a mega carrier with huge market share.

But what if the companies are unable to get the regulatory and trade approvals required before such a transition can take place?

Apparently no one is ready to answer that question. T-Mobile does not have a set strategy on what to do if the proposed AT&T buyout does not gain regulatory approval.

Although there are multiple major cell phone carriers in the US, T-Mobile and AT&T are the only ones that use the international GSM standard. The two of them combining into one company would result in the largest mobile provider by far and could present a monopoly risk.

T-Mobile parent company Deutsche Telekom still has faith that the deal will go through.

Bloomberg quoted Deutsche Telekom supervisory board member Jan van Damme at this week's IFA trade show in Berlin as saying, "Other scenarios were not being discussed. When you are in a deal, you stick to that deal, a clear focus on that deal."

You can bet that people are sweating behind the scenes, but in the public eye neither company appears nervous. "When it comes to larger [merger and acquisition] deals in the US, these things happen. This isn’t an exception ... we have everything under control," said van Damme.

Regardless, someone was thinking of the possibility of a deal collapse when the papers were signed, because the acquisition terms state that AT&T will still hand over a sizable chunk of money to T-Mobile if the government blocks the acquisition.

Via Bloomberg

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The Author

<a href="/latest_stories/all/all/6" rel="author">Mark Raby</a>
Based in New York City, Mark follows the consumer electronics industry like a hawk. A published book author, he has a particular affinity for 3D technology and video games, and as such will surely be in the market for a new pair of glasses soon. Mark can be contacted directly at mark@i4u.com.




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