Android Tablet Update

While addressing shareholders at the company’s annual meeting in Cologne, Germany, Deutsche Telekom CEO Rene Obermann told investors that a complete takeover of T-Mobile USA was out of the question after AT&T’s very public failed bid last year. Obermann did tell investors that it was considering all other options, including a potential merger of its T-Mobile USA business unit with another organization.

There are several options on the table in such a scenario; Sprint has had its eye on T-Mobile USA for a while, and a combined company would present a large competitor to AT&T and Verizon. Such a scenario is unlikely, however, as the technology these companies employ is so different that it would be extremely costly to make the networks compatible.

The more likely potential suitor is MetroPCS, as recent rumors have suggested that the two companies are actively speaking about a possible merger. Bloomberg reported a few weeks back that the company was essentially looking to do a joint venture with MetroPCS, with Deutsche Telekom holding the majority stake of the combined company. The deal could be similar to the Everything Everywhere carrier in the UK, a joint venture between T-Mobile and Orange. Deutsche Telekom is also considering a network sharing agreement with MetroPCS or Sprint, which would have the companies sharing spectrum but maintaining their current status as standalone organizations.

Meanwhile, it’s business as usual for T-Mobile USA. The company is beginning to actively build out an LTE network over the next two years. Time will tell the fate of T-Mobile USA, though the message from Deutsche Telekom is still crystal clear; T-Mobile USA does not work as a standalone business, and the company will be looking at ways to either make T-Mobile profitable, or spin it off into a new company combined with another carrier.

As expected, the European Commission rendered their verdict on the pending merger between Google and Motorola Mobility, and the verdict brings good news for the Mountain View company. The European Commission was likely to be one of the biggest hurdles Googorola would need to overcome to get the deal approved, and Europe today officially blessed the deal.

Hot off the heals of the European Commission’s approval, the U.S. Department of Justice also approved the deal this afternoon, leaving China, Israel, and Taiwan as the only countries left to weigh in on the deal.

With approval from the U.S. and a blessing from Europe, it looks all but certain that Google will be allowed to merge with Motorola in early 2012. Google is now awaiting approval from a handful of jurisdictions around the world, and the deal is likely to close as early as the next few months.

With this merger, we hope that the combined company will either completely rework Motorola’s UI overlay, or ditch it altogether in favor of stock Android. We also hope that Google will stick to its ways of offering unlockable bootloaders on all of Motorola’s phones, something the development community has been waiting on for over a year now. Time will tell how the merger plays out, and whether the two companies will largely integrate or remain separate operating units.

What do you hope for in Googorola? Sound off in the comments.

Google shocked the tech world last year when they announced that they would acquire Motorola Mobility for $12.5 billion. Shareholders already approved the deal and many in the industry assume it will go through, but there are still a few hurdles left to clear before it becomes official. Motorola provided an update on the progress in yesterday’s earnings report.

In order to be approved antitrust clearances, or waiting period expirations, are required by the U.S. Department of Justice, European Commission, Canada, China, Israel, Russia, Taiwan and Turkey.

So far, clearances have only been received from Turkey and Russia. The waiting period has expired in the United States and Canada, but Motorola has been informed that the reviewing agencies have not finished their investigations. The Chinese Ministry of Commerce announced in December that they have moved on to phase two of its investigation.

Motorola “expects the transaction to close in early 2012″ but notes that “factors outside the company’s control” could “delay or prevent completion of the transaction altogether.”

The biggest obstacle to completing the transaction could come from Europe where consumer groups are urging the European Union to block the merger. Consumer Watchdog, a US-based advocacy group, has written a letter [.pdf] to the EU asking them to stop the deal.

Parts of the letter read, “Allowing the Motorola Mobility deal would provide Google with unprecedented dominance in virtually all aspects of the mobile world – manufacturing, operating systems, search and advertising. It would be a virtually unstoppable juggernaut. We urge the Commission to block the proposed $12.5 billion deal.”

Not only does the letter ask the EU to block the merger, but it also calls for an investigation into the Google’s alleged anti-competitive practices.

If you are not familiar with Consumer Watchdog, they have accused Google of engaging in “close relationships” with the U.S. governement and produced several videos attacking former Google CEO, Eric Schmidt.

The EU Commission was originally supposed to make a decision on the merger by January 10th, but that deadline was extended to February 13th after Google submitted additional documents to support its case.

At this point I doubt the deal will get killed, but anything is possible. There was a time when we thought that AT&T’s acquisition of T-Mobile was certain, and look how that turned out.

Now that the AT&T acquisition of T-Mobile ordeal has ended, many Magenta customers may be wondering what the future holds. We know T-Mobile is not doing too well; that was a major reason their parent company wanted to sell them.

It seems Deutsche Telekom will get pretty much all the money AT&T owes T-Mobile for the breakup fee, and they will be using it for debt payments. Does this mean T-Mobile is out in the dust? Well, not exactly. Both carriers have reached a 7-year roaming agreement. This will allow T-Mobile customers to freely roam on AT&T’s UMTS network. T-Mobile has been future-proofing some devices to run on AT&T’s UMTS network (a bit odd, right?), so the next 7 years should be much better for T-Mo’ users.

According to Deutsche Telekom, this deal will expand T-Mobile USA’s coverage by about 50 million subscribers (from 230 to 280 million). This should give T-Mobile a good boost to get back on its feet, and it seems that is T-Mobile’s plan (unless they’re not telling us everything).

T-Mobile’s Chief Operations Officer Jim Alling has released a statement on the company’s official blog to informs us of what the future will be like for Magenta’s customers.

Dear T-Mobile Customers:

By now I am sure you have seen media reports that AT&T and Deutsche Telekom (DT) have mutually decided to terminate their agreement for AT&T to acquire T-Mobile USA. This announcement effectively ends the acquisition process launched March 20.

What does this mean for T-Mobile USA customers? Our focus is unchanged: make the latest mobile products and services affordable for everyone.

And there are many reasons to choose T-Mobile as your wireless provider:

Great Value. We’re offering our best plan ever – 2 lines for $49.99 each that includes voice, text and data (including 2GB at full-speed) on each line with a new 2-year agreement. We also now offer a Monthly4G no annual contract plan that gives you unlimited talk, text, and web (including 100MB at full-speed) for $50.

Compelling Products. We offer a great line-up of 4G smartphones. We continue to rapidly expand our selection of amazing and affordable 4G smartphones, tablets and other devices that make mobile internet service easy and affordable. This holiday, we have cutting edge smartphones including the 42 Mbps-capable HTC Amaze 4G and the Samsung Galaxy S II. In January, we will begin selling the Lumia 710, the first Windows Phone from Nokia for as low as $49.99 after mail-in rebate with a 2-year agreement on a qualifying plan.

America’s Largest 4G Network – now faster than ever. Whether you need driving instructions that are fast enough to keep up with your car, or want to stream a full-length movie uninterrupted, our 4G network delivers. We have expanded our 4G coverage to more than 200 million people in 208 markets and doubled speeds for nearly 180 million Americans in 163 markets.
Thank you for the opportunity to serve you, we appreciate your business and we will continue to focus on earning your loyalty every day.

Regards,

Jim Alling
Chief Operations Officer
T-Mobile USA, Inc.

T-MobileJim AllingCOO of T-Mobile USA

With this, T-Mobile is basically saying “Move along guys, everything will stay the same.” If you have been worrying about the future of T-Mobile, things should stay the same. At least for the near future.

We never know what these companies might be planning in the background. Do you think T-Mobile has some sort of back up plan?

Update

We know Sprint has always been against the AT&T/T-Mobile merger. They made it very clear since the beginning. Such a deal would harm competition, resulting in a worst situation for the consumer.

Sprint has also issued a formal statement, and they are glad to see that this merger did not go through. ^[1]

Earlier today, AT&T terminated its definitive merger agreement with Deutsche Telekom to acquire T-Mobile USA. This is the right decision for consumers, competition and innovation in the wireless industry.

From the beginning, Sprint has stood with consumers who spoke loudly and clearly that AT&T’s proposed takeover of T-Mobile would create an undeniable duopoly that would have resulted in higher prices, less innovation and fewer choices for the American consumer.

Sprint commends the Department of Justice, the Federal Communications Commission and the bi-partisan group of state attorneys general who gave voice to the concerns of consumers across the country. We look forward to competing fiercely in the robust, competitive market that exists today and continuing to deliver the world class service and products that consumers have come to expect from Sprint.Vonya B. McCannSenior Vice President of Government Affairs for Sprint

AT&T issued a statement this afternoon announcing that AT&T and Deutsche Telekom have agreed to drop the merger bid, which had come under heavy scrutiny from the U.S. Government. AT&T and T-Mobile USA will agree to a roaming deal which will allow their phones to work on each other’s networks. In an official statement, AT&T stated:

The actions by the Federal Communications Commission and the Department of Justice to block this transaction do not change the realities of the U.S. wireless industry. It is one of the most fiercely competitive industries in the world, with a mounting need for more spectrum that has not diminished and must be addressed immediately. The AT&T and T-Mobile USA combination would have offered an interim solution to this spectrum shortage. In the absence of such steps, customers will be harmed and needed investment will be stifled.AT&T

AT&T will pay Deutsche Telekom the $4 Billion break-up fee that it had set aside earlier this quarter. We still don’t have any idea whether or not AT&T and Deutsche Telekom are pursuing a joint venture, though we expect that to be the most likely scenario at this time. We’ll keep you updated as we learn more.

Developing…

It’s becoming more and more clear that AT&T will not be allowed to buy T-Mobile USA outright. AT&T’s fourth quarter Hail Mary effort to save the deal involved selling off some of its assets to appease government opposition, including a potential selloff of customers and spectrum to Leap Wireless. The Wall Street Journal is reporting that these divestiture negotiations cooled off over the weekend, and AT&T is now preparing itself to pay the $4B breakup fee to Deutsche Telekom.

Though it appears a full takeover of T-Mobile USA is off the table, two likely alternatives are emerging. First, and perhaps the most likely scenario, AT&T and Deutsche Telekom are discussing entering into a joint venture in the United States that would combine AT&T and T-Mobile’s resources together to create a combined network. The result would be something similar to carrier Everything Everywhere in the UK, which is a joint venture between T-Mobile UK and Orange where Everything Everywhere acts as a single company that runs both T-Mobile UK and Orange networks in the UK.

Alternatively, Dish Network has long expressed interest in entering into the mobile market. Just last week, Dish Network expressed interest in purchasing T-Mobile USA if the AT&T purchase falls through. Dish Network has been acquiring spectrum left and right lately, but still doesn’t have enough spectrum to launch a widespread cellular network. Purchasing T-Mobile would provide Dish Network with the opportunity to launch their own carrier, probably under the Dish moniker.

Regardless of which suitor ultimately partners with or fully acquires T-Mobile USA, Deutsche Telekom (DT) continues to indicate that they have no interest in staying in the US market for long. It is widely believed that the $4B breakup fee from AT&T will be used to invest in DT’s European network, not to bolster the operations of  T-Mobile USA.

We’ll likely know more about T-Mobile USA’s fate in coming months. For now, it appears T-Mobile customers can rest assured that they won’t become AT&T customers anytime soon (or Leap Wireless customers, for that matter).

If you blinked at our report on the AT&T-Mobile deal yesterday (you may have missed that over the Thanksgiving holiday weekend), AT&T put in a request to the FCC to withdraw its merger application. AT&T did this for several reasons. The two prominent reasons are the need to focus on the pending court case with the Justice Department and the need for a more palatable deal that includes selling off a significant amount of customers and spectrum to Leap Wireless, which AT&T hopes will allow the deal to gain approval.

As a result of withdrawing their application, AT&T believed the FCC would not release their report on the proposed merger. Boy were they wrong. The FCC accepted AT&T’s withdrawal, but instead of holding back their report, the FCC released their 109-page analysis to the public domain. This is a significant move on the part of the FCC, because the scathing report will likely hurt AT&T’s chances of success in their upcoming legal battle with the Justice Department. Furthermore, if the merger survives the lawsuit with the Justice Department, the restructured agreement would ultimately end up back on the FCC’s desk for review.

Though AT&T’s lawyers yesterday sounded optimistic, claiming the addition of the Leap Wireless agreement would bolster the odds of the deal going through to about 60-70%, it appears they have reason for concern this morning. National Public Radio reported this morning that analysts are now suggesting a much more dismal 20-30% chance of approval.

It appears the writing is on the wall and that AT&T is fighting a steep uphill battle if they’re ever going to salvage the purchase of T-Mobile. Good thing they took out that $4 billion charge against earnings in preparation for having to pay Deutsche Telekom the breakup fee. If you want to read the 109-page document for yourself, head over to the FCC’s site for the full paper.

The proposed merger between AT&T and T-Mobile USA just gets more and more interesting. The deal has reached the point where AT&T will need to make several concessions if it is to have even a remote chance of success against a sea of litigation. This will include selling spectrum and customers to smaller, regional wireless companies, who would least likely benefit from the deal going through.

The New York Times reported late last night that AT&T has concocted an 11th hour plan it hopes will spur the Justice Department to drop their lawsuit that seeks to stop the deal in its tracks. Under the new proposal, AT&T would sell off a mixture of T-Mobile’s spectrum and customers to Leap Wireless, which runs Cricket and Jump Mobile. Though AT&T declined to comment as to what the mix of spectrum and customers would be, The Verge goes on to speculate that the selloff would largely lean towards customers, since AT&T’s purchase of T-Mobile was intended to build up AT&T’s spectrum so that it could properly roll out an LTE network.

Facing the need to pay an exorbitant amount of money to Deutsche Telekom as a break-up fee if the deal doesn’t go through, AT&T is doing all it can to ensure that the deal goes through without too many hitches. The Leap Wireless deal can be viewed as a last ditch effort to push the deal through the US government, and it has the potential to be exactly what the deal needed to move forward.

Optimism about the deal took a turn for the worse over the holiday weekend when AT&T announced it was withdrawing the deal’s application to the FCC and that it was charging $4 billion against its earnings to be able to pay a break-up fee should the deal get rejected. With the announcement of a potential Leap Wireless deal, however, it seems the optimism is heading back in the positive direction, with the lawyers who will be handling the merger case now putting the chances of success between 60 and 70 percent.

It seems that AT&T was at least partially telling the truth when they disclosed that the deal was largely made to bolster AT&T’s spectrum in the impending LTE showdown with Verizon and Sprint. If the deal is allowed to go through, several of T-Mobile USA’s customers could become part of a bolstered Leap Wireless, which would become the nation’s 4th biggest carrier.

What do you guys think? Will the deal be more likely to succeed with AT&T’s partnership with Leap Wireless? We know you T-Mobile USA customers were not too keen on becoming part of AT&Ts network, but aren’t you even less excited to become part of Leap Wireless?

A new report out of the Financial Times today sheds some light on what analysts think of the T-Mobile AT&T merger, and it isn’t good.

According to the report, a large number of analysts put the probability of the deal passing at under 50%, with some going as low as 20%. No one thought the merging of two wireless giants was going to be a simple task, but the deal has been met with more opposition than originally expected.

The merger was supposed to be completed by March of 2012, one year after it was announced. Earlier this month, AT&T came forward stating that it would take more time than that, changing their projected timeline to the middle of 2012. The latest reports say that at the very least, AT&T will have to sell off some of the spectrum they’ll acquire from the merger if they want the deal to go through.

The lawsuits, delays, T-Mobile’s third quarter customer gains and analysts predictions (which are a little more helpful here than when trying to pinpoint release dates) mean one thing for AT&T: if they want this merger to go through, they are really going to have to work for it. But what does it mean for T-Mobile customers?

When talking about the merger, and what will happen between AT&T and T-Mobile, it can be easy to forget the kind of predicament T-Mobile customers are in. Speaking from personal experience, it’s hard to decide what to do when your future is so uncertain.

Even if I can just transfer my family plan of five lines to AT&T when the time comes, should I? Will there be some hidden fees later down the road that will come back to haunt me? Will I not be allowed upgrades anymore, or will doing so move me onto an AT&T plan that’s twice as much as what I pay now? I have been heavily considering buying a Galaxy Nexus from overseas, but if I can’t even use it in six months becuase I end up switching to Sprint, what’s the point? And what’s going to happen to all the people still signing up for T-Mobile? Do they know that soon enough, the carrier they just joined up with will be gone? Perhaps the biggest question of all, what will T-Mobile do if the merger doesn’t succeed?

Clearly, there’s far more questions than answers. And it puts T-Mobile customers in a tight spot. Even those that were ready to accept their fate as a customer of AT&T are facing more and more uncertainty on the possibility everyday. Customers of T-Mobile, what are your plans? Are you going to wait it out and see what happens next year, or are you getting tired of waiting?