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Tag: T-Mobile

  • T-Mobile USA CEO Talks DOJ Suit in Email to Employees

    T-Mobile USA CEO Talks DOJ Suit in Email to Employees

    As previously reported, the U.S. Department of Justice has moved to block AT&T’s proposed acquisition of T-Mobile USA. They have filed an antitrust suit with this cause.

    T-Mobile USA CEO and President Philipp Humm reportedly sent out an email to employees addressing the DoJ’s move. This is My Next has shared the email with additional commentary. The email itself says:

    Colleagues,

    By now you have heard the news that the Department of Justice (DOJ) has filed a lawsuit to block the AT&T and T-Mobile merger in U.S. District Court. We were surprised by this sudden announcement, and DT will join AT&T in challenging the DOJ’s case in court.

    DT and AT&T believe the DOJ has failed to acknowledge the significant consumer benefits of this deal. DT remains convinced that bringing together these two world-class businesses would create significant benefits for customers and the country.

    While this action is addressed in Federal court, the best thing you can do is continue to focus on strengthening our business and offering world class customer service.

    Customers have many reasons to choose T-Mobile—from the great value we offer, to compelling devices running on America’s largest 4G network and our leadership in customer service and satisfaction. Working as a team, we will continue to prove there’s no better time to be a T-Mobile customer.

    Let’s build upon the positive momentum we’ve created in recent months. We have a great team here at T-Mobile, and I know you will join me in ensuring that, no matter what, ‘I Am T-Mobile Count on Me.’

    I promise to make more information available to you in the coming days and weeks on OneVoice and through your leaders as this news develops.

    Thank you for your ongoing commitment and support.

    Regards,

    Philipp Humm

    CEO & President
T-Mobile USA

    Sprint is applauding the DoJ’s move. The company released the following statement from Vonya B. McCann, senior vice president of Government Affairs for Sprint:

    “The DOJ today delivered a decisive victory for consumers, competition and our country. By filing suit to block AT&T’s proposed takeover of T-Mobile, the DOJ has put consumers’ interests first. Sprint applauds the DOJ for conducting a careful and thorough review and for reaching a just decision – one which will ensure that consumers continue to reap the benefits of a competitive U.S. wireless industry. Contrary to AT&T’s assertions, today’s action will preserve American jobs, strengthen the American economy, and encourage innovation.”

  • DoJ Files To Block AT&T, T-Mobile Merger

    DoJ Files To Block AT&T, T-Mobile Merger

    The United States Department of Justice announced today that it has filed an antitrust lawsuit to block AT&T’s proposed acquisition of T-Mobile.

    “The combination of AT&T and T-Mobile would result in tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for mobile wireless services,” said Deputy Attorney General James M. Cole.   “Consumers across the country, including those in rural areas and those with lower incomes, benefit from competition among the nation’s wireless carriers, particularly the four remaining national carriers.   This lawsuit seeks to ensure that everyone can continue to receive the benefits of that competition.”

    “T-Mobile has been an important source of competition among the national carriers, including through innovation and quality enhancements such as the roll-out of the first nationwide high-speed data network,” said Sharis A. Pozen, Acting Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.   “Unless this merger is blocked, competition and innovation will be reduced, and consumers will suffer.”  

    The DoJ filed the suit in U.S. District Court for the District of Columbia.

    The complaint says that the two companies compete head to head nationwide (including in 97 of the nation’s largest 100 cellular markets, as well as compete for business and government customers. “AT&T’s acquisition of T-Mobile would eliminate a company that has been a disruptive force through low pricing and innovation by competing aggressively in the mobile wireless telecommunications services marketplace,” the DoJ says.

    From the press release:

    The complaint cites a T-Mobile document in which T-Mobile explains that it has been responsible for a number of significant “firsts” in the U.S. mobile wireless industry, including the first handset using the Android operating system, Blackberry wireless email, the Sidekick, national Wi-Fi “hotspot” access, and a variety of unlimited service plans.   T-Mobile was also the first company to roll out a nationwide high-speed data network based on advanced HSPA+ (High-Speed Packet Access) technology.  The complaint states that by January 2011, an AT&T employee was observing that “[T-Mobile] was first to have HSPA+ devices in their portfolio…we added them in reaction to potential loss of speed claims.”

    The complaint details other ways that AT&T felt competitive pressure from T-Mobile.   The complaint quotes T-Mobile documents describing the company’s important role in the market:

    • T-Mobile sees itself as “the No. 1 value challenger of the established big guys in the market and as well positioned in a consolidated 4-player national market”; and
    • T-Mobile’s strategy is to “attack incumbents and find innovative ways to overcome scale disadvantages.   [T-Mobile] will be faster, more agile, and scrappy, with diligence on decisions and costs both big and small.   Our approach to market will not be conventional, and we will push to the boundaries where possible. . . . [T-Mobile] will champion the customer and break down industry barriers with innovations. . . .”

    The complaint also states that regional providers face significant competitive limitations, largely stemming from their lack of national networks, and are therefore limited in their ability to compete with the four national carriers.   And, the department said that any potential entry from a new mobile wireless telecommunications services provider would be unable to offset the transaction’s anticompetitive effects because it would be difficult, time-consuming and expensive, requiring spectrum licenses and the construction of a network.

    The department said that it gave serious consideration to the efficiencies that the merging parties claim would result from the transaction.   The department concluded AT&T had not demonstrated that the proposed transaction promised any efficiencies that would be sufficient to outweigh the transaction’s substantial adverse impact on competition and consumers.   Moreover, the department said that AT&T could obtain substantially the same network enhancements that it claims will come from the transaction if it simply invested in its own network without eliminating a close competitor.

    AT&T said that it would bring back 5,000 U.S. jobs if the merger is approved, according to Retuers. The company, however, has not specified where these jobs would be located.

    The DoJ’s announcement has already proven to be good news for Sprint:

    @WSJ
    Wall Street Journal    Sprint is up 9.3% on news of the U.S. suing to block AT&T’s $39 billion purchase of T-Mobile. Latest: http://t.co/AbDOvyF 29 minutes ago via TweetDeck · powered by @socialditto

    Update: Vonya B. McCann, senior vice president of Government Affairs for Sprint, issued the following statement:

    “The DOJ today delivered a decisive victory for consumers, competition and our country. By filing suit to block AT&T’s proposed takeover of T-Mobile, the DOJ has put consumers’ interests first. Sprint applauds the DOJ for conducting a careful and thorough review and for reaching a just decision – one which will ensure that consumers continue to reap the benefits of a competitive U.S. wireless industry. Contrary to AT&T’s assertions, today’s action will preserve American jobs, strengthen the American economy, and encourage innovation.”

  • AT&T, Verizon, T-Mobile To Reportedly Put $100 Million More Into Isis

    AT&T, Verizon, T-Mobile To Reportedly Put $100 Million More Into Isis

    Back in November, we told you about a joint venture between AT&T and Verizon Wireless (it also includes T-Mobile, which AT&T is trying to acquire) on a mobile payments network. The offering, called Isis, allows users to pay for purchases from their smartphones.

    Now, Isis is getting a new injection of funds to the tune of $100 million from the three mobile carriers, as it aims to take on Google Wallet, according to a report from Bloomberg.

    “Our mobile commerce network, through relationships with merchants, will provide an enhanced, more convenient, more personalized shopping experience for consumers,” Isis CEO Michael Abbott said back when it was announced.

    “While mobile payments will be at the core of our offering, it is only the start,” he said at the time. “We plan to create a mobile wallet that ultimately eliminates the need for consumers to carry cash, credit and debit cards, reward cards, coupons, tickets and transit passes.”

    Google introduced Google Wallet in May as an app that turns your phone into your wallet:

    “A key benefit to retailers will be the integration of coupons, or offers, into Google Wallet. We’ve been testing a variety of offers – from discounts directly within search ads to check-in offers to offers in Google Places,” said Google Director of Commerce Partnerships, Spencer Spinnell. “Over time, consumers will be able to save each of these offers directly to their Google Wallet. That means consumers will get the benefit of carrying their offers with them at all times, bringing retailers targeted foot traffic.”

    With Google trying to acquire Motorola Mobility, it will be quite interesting to see how all of this plays out. Remember that Google Wallet will likely be integrated with Google Offers and Google+.

  • T-Mobile Introduces Phone Trade-In Program

    T-Mobile Introduces Phone Trade-In Program

    Rumors of unpopular acquisitions be damned, T-Mobile is going ahead with business as usual. The company that brought the pleasant Carly Foulkes into our lives, otherwise known as the company AT&T wants to absorb in order to avoid updating to a 4G network, is introducing a new program designed to get the attention of those who want to trade their older phone in for something shiny and new.

    The T-Mobile Trade-in program allows owners of older phones the opportunity to trade their out-of-style bricks in towards the purchase of a new T-Mobile phone. The program gives up to $300 towards a new phone and it accepts these trade-ins regardless of brand or carrier. The major stipulation is that the phone has to work, including the screen. Phones damaged by liquid-based products are not eligible for trade-ins, either.

    T-Mobile even has a site set up — My Trade Ins — allowing potential customers the ability to get an idea of how much their trade-in phone is worth. The post also gives an example of the going exchange rate:

    For example you can receive as much as $170 for an Apple iPhone 3GS (32 GB), $155 for an HTC Evo or $110 for a Droid 2.

    No word on whether or not Miss Foulkes assists in this process in anyway, but her inclusion would only help the program succeed.

    The unavoidable question going forward is, if AT&T is indeed allowed to acquire T-Mobile, will they continue to honor such a plan? Will they simply re-skin the My Trade-Ins site and continue supporting it or will they do away with it altogether. Considering the commitment from AT&T’s upper management to maintaining existing T-Mobile price models for acquired customers, it would hypocritical not to.

    But then again, we are talking about a company that supports capping their Internet service provision, so there’s really no telling of what will and won’t be honored if T-Mobile gets swallowed by AT&T. It would also be advisable to keep Carly Foulkes as the spokesperson too. There’s no need letting a talent like that go to waste because of an upheaval in the telecommunications industry.

  • AT&T Files with FCC to Transfer T-Mobile Licenses

    AT&T Files with FCC to Transfer T-Mobile Licenses

    Today, AT&T began to make its case to the FCC regarding the proposed $39 acquisition of T-Mobile.  Along with the requests to transfer licenses from T-Mobile USA to AT&T, the nation’s largest mobile provider also filed a public interest statement suggesting the benefits that said merger would have for customers.

    According to AT&T’s public policy blog, the papers filed with the FCC say that the proposed deal would benefit everybody involved, especially the customer.  According to AT&T, both companies involved are facing capacity restraints, and combining the companies will allow them to address those constraints head on.  That would be improved service for all, faster data transfer, and fewer dropped and failed calls (for the love of all that is holy, please).

    From the policy blog:

    We’ve been working tirelessly to address this data explosion through a wide variety of means.  We have purchased additional spectrum on the secondary market; we have added thousands of cell sites and additional backhaul capacity to our network grid; we’ve deployed distributed antenna systems, we’ve built WiFi hot zones in heavy usage areas like Times Square and others, and we’ve set up more than 24,000 WiFi hotspots to off-load traffic from our mobile network.  Since 2008, AT&T has invested $21.1 billion in capital expenditures to upgrade its wireless network – $15 billion of it in the past two years alone.

    But it’s not enough.  AT&T faces severe spectrum and capacity constraints and cannot simply wait for the next major auction to address them.  T-Mobile USA also faces spectrum exhaust in certain markets.  If unaddressed, the network limitations and constraints confronting both of our companies would lead to more dropped and blocked calls, slower speeds, and access to fewer and less advanced technology platforms and applications.

    AT&T has been predicting vastly improved service for all since the announcement of the deal.  CEO Randall Stephenson touted an immediate 30% lift in capacity in NYC alone on the day the deal finalizes.

    Now, of course, one can’t just take AT&T’s word on these alleged benefits.  In the debate regarding the impact of this acquisition, most opponents fear that it will absolutely crush competition in the world of wireless.  The nation’s 3rd leading wireless provider Sprint has been quite vocal in its opposition of the deal, saying that it will create a duopoly that will leave no room for any competitors.

    AT&T says that the increased capacity will improve competition, and that T-Mobile’s absence from the marketplace will not really matter in terms of competition:

    Indeed, by alleviating capacity constraints and expanding output, the transaction will increase competition.  Among the many providers that will continue to compete vigorously are Verizon Wireless, Sprint, MetroPCS, Leap, U.S. Cellular, Cellular South, Cincinnati Bell Wireless, Cox Communications.  And let’s not forget Clearwire, and that LightSquared plans to deploy a 4G LTE network covering 100 million people by the end of 2012, and 260 million by the end of 2015.

    With all of this competition, the absence of T-Mobile USA from the marketplace will not have a significant competitive impact.  In fact, as an independent competitor, T-Mobile USA would face serious challenges.  It has been losing market share the last two years, is confronting spectrum exhaust in certain markets with no ready means to acquire significant additional spectrum in the near term, and lacks a clear path to LTE.

    Burn.

    Basically, this is AT&T’s argument in the case that the FCC must rule upon.  If the deal clears the FCC, it still has to clear the Department of Justice at a later date.

    All Things D quotes the non-profit group Free Press as saying today:

    “No matter how many high-priced lobbying firms AT&T hires, it won’t be able to fool Americans into thinking the reconstitution of the Ma Bell monopoly is a good thing.  Make no mistake, this deal is about eliminating a competitor and nothing more. AT&T has chosen the marketing slogan ‘Mobilize Everything’ to sell this competition-killing deal, but it’s clear their real goal is to ‘Monopolize Everything.’”

    It will be interesting to see how this all shakes out.

  • HTC Sensation 4G “Multimedia Superphone” Coming This Summer

    The HTC Sensation is described as a “multimedia superphone” by the company. It comes with a 4.3”widescreen qHD display, hi-fi audio instant capture camera, a “richer Internet experience” (multi-window browsing, quick lookup tool, Flash support), and an active lockscreen.

    The locksreen will show things like portfolio information, friends’ status updates, etc.

    The device will be available this summer in the U.S. for T-Mobile.

    HTCWe are very proud to introduce our latest smartphone, HTC Sensation. More info to come. 4 hours ago · 1,181 likes · 177 comments

    “Consumers have quickly transformed smartphones into consumer lifestyle hubs that are pocket-sized entertainment centers that enable people to take their favorite multimedia content with them wherever they go. The new HTC Watch service makes it fun and easy for people to access premium movies and TV shows while on the go,” said Peter Chou, CEO of HTC Corporation. “The HTC Sensation 4G combines this great multimedia experience within the latest HTC Sense experience in a premium device that delivers a powerful and unprecedented smartphone to our customers.”

    “The HTC Sensation 4G delivers the ultimate in speed and entertainment on America’s Largest 4G network,” said Andrew Sherrard, SVP of marketing for T-Mobile USA. “With a lightning-fast dual core processor and 4G speeds, customers will experience the difference when accessing rich media and content on the HTC Sensation 4G’s beautiful qHD display. We look forward to adding the HTC Sensation 4G to our industry-leading lineup of 4G smartphones.”

    If you’re still worrying about iPhone availability for T-Mobile, this device would reflect T-Mobile’s initial statement about that: “T-Mobile USA remains an independent company. The acquisition is expected to be completed in approximately 12 months. We do not offer the iPhone. We offer cutting edge devices…”

    The HTC Sensation has a unibody aluminium construction and contoured glass along the entire edge of the screen, which HTC says protects your screen from grit when it’s face down.

    It has a 1.2 GHz dual core processor, and runs Android Gingerbread (2.3) with Sense 3.0.

  • AT&T T-Mobile Deal: iPhone Service Improved?

    AT&T looks to be on the defensive. Criticisms of AT&T’s proposed acquisition of T-Mobile have been getting stronger, as is evident by Sprint’s public protest released this week. Many are worried about that the deal could lead to a wireless “duopoly” of AT&T and Verizon, limiting market competition. People are also concerned about the way the deal will impact customers, as nobody wants their service to be altered in any way.

    AT&T CEO Randall Stephenson is attempting to but a polished spin on these concerns. Today, at an event for the Council of Foreign Relations in New York, Stephenson said that the acquisition would boost network capacity and thus make iPhone service (among others) much better.

    According to Bloomberg, Stephenson claimed that large U.S. cities would see a large spike in capacity and overseas roaming charges could also see a reduction:

    “This transaction is very instrumental” in improving network service, said Stephenson at the event. “Virtually on the day you close the deal, getting a 30 percent lift in capacity in New York City: that’s a significant improvement in call quality and data throughput.”

    Oh, really?

    As Stefani Lain suggests, “T-Mobile and AT&T use incompatible frequencies in the U.S.: T-Mobile’s phones use the 1,700 and 2,100 MHz frequency bands, while AT&T’s phones use the 850 and 1,900 MHz bands. As a result, phones built for AT&T’s network usually offer poor performance when used on T-Mobile’s network, and vice versa, a problem experienced by most iPhone users who unlocked their device to use it on T-Mobile’s network.”

    Maybe Stephenson was referring to the part of the deal that commits AT&T to expanding its LTE technology (4G) to an additional 46.5 million people.

    Oh, and about those anti-competition concerns?

    “This is an intensely competitive industry. It is intense before we do this transaction, it will be intense after we do this transaction,” Stephenson said at the event.

    Pardon me Randy if I am a little skeptical of that claim. In what ways will the AT&T / T-Mobile deal harm or benefit the customer? Tell us what you think.

  • Sprint: “AT&T / T-Mobile Deal Would Harm Consumers”

    Since last week’s announcement that AT&T, the nation’s largest wireless provider, is planning to buy T-Mobile for $39 billion, there has been no lack of criticism from many different outlets. Many worry that the deal could harm competition and in the end hurt the quality of service provided to consumers. Sprint is the latest to throw their hat in the ring, today publicly opposing the acquisition in a press release.

    Sprint says that the deal could do incredible damage to the competition and innovation that flourished in the wireless industry for some time. Sprint notes that decisions by the U.S. government and courts have served to open the wireless market in the part few decades. They fear that AT&T’s acquisition of T-Mobile could undo all of that progress.

    Sprint notes that if the deal is finalized, a company will be created that is nearly three times the size of Sprint in terms of revenue and that a duopoly would be solidified, with AT&T and Verizon controlling the wireless market.

    “Sprint urges the United States government to block this anti-competitive acquisition,” said Vonya McCann, senior vice president, Government Affairs. “This transaction will harm consumers and harm competition at a time when this country can least afford it. As the first national carrier to roll out 4G services and handsets and the carrier that brought simple unlimited pricing to the marketplace, Sprint stands ready to compete in a truly dynamic marketplace. So on behalf of our customers, our industry and our country, Sprint will fight this attempt by AT&T to undo the progress of the past 25 years and create a new Ma Bell duopoly.”

    The deal must eventually pass through the Department of Justice and the FCC, which will have extensive hearings on the subject. Sprint will most likely be given their chance to get their opposition on the record.

    Sprint is not the first to publically oppose this acquisition, as last week the Rural Telecommunications Group (RTG) released their own opposition. RTG is an association of small service providers, all serving less than 100,000 wireless customers. They say that this is just one in a line of mergers & acquisitions that will eventually kill all competition:

    Over and over again, RTG and its members have voiced their concerns regarding the negative repercussions that will befall the mobile wireless industry if mergers and acquisitions, especially among the sector’s largest players, continue unabated. “November 4, 2008, the day the FCC approved the Alltel/Verizon merger under Federal Communications Commission Chairman Kevin Martin, was the first day the United States wireless market ceased to be competitive,” stated RTG’s General Counsel, Caressa Bennet. “The market has failed and T-Mobile’s decision to throw in the towel only confirms it.” The Department of Justice and the FCC have approved similar mergers in the past and American consumers should brace themselves for losing yet another marketplace choice in the mobile sector.

  • Verizon Sprint Merger Not Looking Likely

    As you probably know, AT&T and T-Mobile USA announced plans for the former to acquire the latter from Deutsche Telekom for $39 billion in cash and stock. While the deal, expected to close in a year, has to go over some regulatory hurdles from the FCC and the DoJ, there have been concerns that the deal will narrow choices for consumers.

    Part of these fears have also included speculation that Verizon would try to acquire Sprint to stay competitive with AT&T. Verizon is trying to quiet down such talk, however. CEO Daniel Mead told Reuters, “We’re not interested in Sprint. We don’t need them.”

    Well, time will tell whether that remains the case, and opinions have a funny way of changing in the telecommunications industry. See recent T-Mobile ads blasting AT&T’s network:

    That is the nature of competition.

    T-Mobile announced itself today that its doubling the speed of its 4G network to achieve a theoretical download speed of 42 Mbps starting in Las Vegas, New York and Orlando to be followed closely by Chicago and further expansion of the New York network into Long Island and Northern New Jersey. By mid-year, T-Mobile says it expects 140 million Americans in 25 markets to have access to increased 4G speeds.

    “As T-Mobile continues the aggressive expansion of America’s Largest 4G Network, we’re doubling our maximum speed in more than two dozen markets, starting with three important cities today,” said T-Mobile USA CTO Neville Ray. “We will continue to build on our 4G network advantage this year, providing customers with an industry-leading mobile data experience.”

    T-Mobile also says it intends to offer more 4G products this Spring. These include: the T-Mobile G2x, T-Mobile G-Slate, T-Mobile Sidekick 4G, Rocket 3.0, T-Mobile 4G Mobile Hotspot, and prepaid Rocket 4G.

    Mead said this morning that Verizon never looked at buying T-Mobile and that Verizon will not be distracted by the AT&T T-Mobile merger.

    Sprint CEO Dan Heese is quoted as saying, “I do have concerns that it would stifle innovation and too much power would be in the hands of just two.”

  • T-Mobile iPhone Not in the Cards Just Yet

    When the AT&T/T-Mobile deal was announced, one of the first things that came to many people’s minds was something along the lines of, ‘Well, I guess T-Mobile’s getting the iPhone too.”

    That may or may not be the case, but either way, don’t look for it to happen incredibly soon. On a T-Mobile FAQ page, the company says: “T-Mobile USA remains an independent company. The acquisition is expected to be completed in approximately 12 months. We do not offer the iPhone. We offer cutting edge devices like the Samsung Galaxy S 4G and coming soon our new Sidekick 4.”

    Roughly translated: Don’t buy the iPhone now.  Buy these other things that we actually offer. If this acquisition goes through, then we’ll talk.

    According to Darrell Etherington at GigaOm, Ralph de la Vega, president and CEO — Mobility and Consumer Markets at AT&T, said that T-Mobile’s customers will get access to “an industry leading portfolio of devices which will include those from Apple, Microsoft and RIM,” pointing out that devices from Apple could also mean iPad.

    It could mean both, and it could mean something else that Apple comes out with down the line. Either way, I’d say odds are much better that T-Mobile users will have access to any Apple mobile device if this acquisition gets the regulatory approval that it needs from the Federal Communications Commission and the Department of Justice.

    Apple analysis blog Cult of Mac has a pair of interesting quotes from financial analysts. Bank of America analyst Scott Craig is quoted as saying, ‘We believe T-Mobile could add [around] 3 million incremental iPhones in its first full year, which could be conservative.” A Stifel Noclaus analyst says the firm has already made the assumption that iPhones and iPads will be available to T-Moible customers next year, and this is reflected in their Apple estimates.

    Clearly, if T-Mobile customers get access to the iPhone and/or iPad, it’s going to be huge for Apple’s sales. The demand is high. This was made abundantly clear when Verizion got the iPhone. It won’t be good for Sprint – that is if they don’t get acquired by Verizon or something.

    Last week, Millennial media revealed in a report that 4.5% of U.S. iPhone impressions came from Verizon, just two weeks after the launch.

    The iPhone has had a rocky relationship with Consumer Reports, but J.D. Power and Associates has it ranked number one on its smartphone customer satisfaction rankings. I guess those customers have bumpers. Another report from Blaze Software found that the iPhone is slower than the latest versions of Android in loading web pages.

  • AT&T Buys T-Mobile USA from Deutsche Telekom

    AT&T Buys T-Mobile USA from Deutsche Telekom

    AT&T is planning on buying T-Mobile USA from Deutsche Telekom for  $39 billion in cash and stock. The deal must be approved by both the Department of Justice and the Federal Communications Commission first.

    “This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation’s future,” said AT&T Chairman and CEO Randall Stephenson. “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,” added Stephenson. “During the past few years, America’s high-tech industry has delivered innovation at unprecedented speed, and this combination will accelerate its continued growth.”

    T-Mobile says customers will experience no change in their service. Their devices will continue to work, and they will continue to be billed by T-Mobile, rather than AT&T. Contracts will be honored.

    T-Mobile USAAn agreement was announced under which AT&T will acquire T-Mobile USA. The agreement is the first step in a process that, including regulatory approvals, is expected to be completed in approximately 12 months. Until then, we remain a separate company and continue to operate independently.

    We know our customers may have many questions. Please visit this link for some additional information. 14 hours ago · 318 likes · 2,530 comments

    “Bringing together these two world-class businesses will create significant benefits for customers,” the company says. “The merger will ensure the deployment of a robust 4G LTE network to 95% of the U.S. population, something neither company would achieve on its own. Also, because of our compatible networks and spectrum, the customers of T-Mobile USA and AT&T will experience improved voice and data service almost immediately after the networks are integrated.”

    The acquisition plans, as one might expect, are drawing a massive amount of criticism, mainly over the reduction in choices for consumers. Some have specualted that Verizion will try to acquire Sprint next.

    One might expect T-Mobile users to at least get access to iPhones and iPads. On a FAQ page, T-Mobile’s response o the question, “Is T-Mobile USA getting the iPhone?” the company says, “T-Mobile USA remains an independent company. The acquisition is expected to be completed in approximately 12 months. We do not offer the iPhone. We offer cutting edge devices like the Samsung Galaxy S 4G and coming soon our new Sidekick 4.”

    Under the deal, Deutsche Telekom would receive $ 39 billion USD, and would have up to an 8 percent stake in AT&T (25 billion in cash and $14 billion in AT&T shares). Deutsche Telekom says it plans to use about 5 billion EUR for share buybacks.

  • T-Mobile Launches Android App To Prevent Texting While Driving

    T-Mobile has released an Android app called DriveSmart Plus aimed at preventing texting while driving.

    DriveSmart Plus, powered by Location Labs, is is a subscription-based, opt-in service that automatically detects when a handset user is driving and sets the phone into a ‘Driving Mode’.  Once this service is activated, it disables most texting and calling features to the handset while the car is in motion.

     

     

     Additionally, an auto-response text message is sent to the person who phoned or texted alerting them the recipient is driving and unavailable to receive calls or messages.  

    DriveSmart Plus is available for download onto the LG Optimus, with support for more devices coming soon.

    “T-Mobile customers can do more on their phones than ever before while on the go," said Torrie Dorrell, vice president of applications, content and games, T-Mobile USA.  

    "We feel strongly that with this freedom comes the responsibility to use their phones only when it is safe to do so.  The T-Mobile DriveSmart Plus application is designed to keep our customers, their loved ones and the road safe.”

     

  • AT&T And Verizon Aim To Create Mobile Payment Network

     AT&T, T-Mobile and Verizon Wireless have announced the formation of a joint venture called ISIS, a mobile payments network.

    Discover Financial Services and Barclays Plc are also participating in the joint venture which will allow people to pay for purchases with their smartphones.  ISIS is expected to be introduced in larger markets during the next 18 months.

    ISIS Michael Abbott has been named as Chief Executive Officer of Isis. Formerly with GE Capital, Abbott is a veteran financial services executive with experience in the payment and technology industries.

    “Our mobile commerce network, through relationships with merchants, will provide an enhanced, more convenient, more personalized shopping experience for consumers,” said Michael Abbott, Chief Executive Officer of Isis.

    “While mobile payments will be at the core of our offering, it is only the start. We plan to create a mobile wallet that ultimately eliminates the need for consumers to carry cash, credit and debit cards, reward cards, coupons, tickets and transit passes.”

  • Windows Phone 7 Devices Available in the U.S. How Will They Sell?

    Windows Phone 7 devices went on sale in the United States today with models available in AT&T and T-Mobile, stores.

    Microsoft is sharing results from a Harris Interactive survey to help push its new operating system. The thinking is that Windows phones are "designed to get users in, out and back to life."

    "Although consumers love their phones, there is growing annoyance with the distracted behaviors people exhibit while their heads are buried in their phones," the company says. "Most U.S. adults indicate they have witnessed examples of bad mobile phone behavior, yet relatively few have admitted to engaging in such behavior themselves."

    Here are some of the findings they’re sharing:

    Harris Results for Reasons to use Windows Phone 7

    Currently available models from AT&T include the Samsung Focus and HTC Surround. The HTC HD7 is available from T-Mobile. AT&T is also taking pre-orders for the LG Quantum. The Dell Venue Pro is in the pipeline as well. 

    The available phones are each priced around $200 with new carrier contracts. 

    Now, let’s see how well these bad boys sell, and what impact they have on Bing use. This will be something to keep a close eye on in the search industry. 

  • Google Lands T-Mobile Europe Deal

    Google Lands T-Mobile Europe Deal

    Millions of mobile phone users in Europe should soon start seeing a lot more of Google’s properties.  The search giant has secured a search deal with Deutsche Telekom, which owns T-Mobile.

    Google will now be T-Mobile’s default search provider in Europe, and that means its engine will be accessible through both the standard T-Mobile homepage and an "idle" screen. It’s hard to imagine Google won’t see a bump in market share as a result.

    Yahoo, meanwhile, may see a corresponding decline.  A Mobile Business Briefing article reported, "It appears that with the current partnership, Google has displaced Yahoo!, which announced a strategic alliance with T-Mobile ‘including mobile search’ in February 2008."

    GoogleAnd making this an even more solid victory for Google is the fact that the search giant already has a deal in place regarding Deutsche Telekom’s fixed-line business.

    In any event, Rainer Deutschmann, Senior Vice President of Mobile Products at Deutsche Telekom, reasoned in a statement, "Google is best placed to deliver the demanding product requirements we have for our customers . . . . and we expect synergies in the future as we continue to release innovative convergent solutions."

    No details concerning lump sum payments or revenue sharing plans have been disclosed at this point.

  • Yahoo Announces Android Deals With Sprint, T-Mobile

    With the help of Sprint and T-Mobile, Yahoo is moving onto Google’s turf.  The company announced late yesterday that it intends to make Yahoo products and services more accessible to users of certain Android devices.

    Let’s address the deals in alphabetical order.  With regards to the Sprint pact, Yahoo explained on the Yodel Anecdotal blog, "We announced an extended partnership with Sprint around Sprint ID – providing Sprint customers with a Yahoo! ID pack of services, including 1-click access to 12 different Yahoo! Android apps."

    Sprint ID is supposed to launch on the LG Optimus S, Samsung Transform, and Sanyo Zio, and the apps include things like Yahoo Finance, Yahoo Mail, Yahoo Messenger, and Yahoo Sports.

    As for the other partnership, the blog post stated, "Earlier this week, T-Mobile announced their latest Android powered MyTouch device delivering hi-definition video and 4G speeds, and we’re thrilled to partner with them and deeply integrate Yahoo! Mail and Yahoo! Messenger (with video chat!) into the latest MyTouch device."

    The T-Mobile myTouch, as it’s known, is supposed to launch before Christmas, by the way.

    At any rate, it’ll be quite a victory for Yahoo if it’s able to carve out a user base among Android device owners.

  • Kinect to Launch with Campaigns from Chevy, Sprint & T-Mobile

    It turns out Microsoft’s Kinect, the Xbox add-on that lets users play games without controllers, is not just entertainment for users, but an interesting advertising platform for businesses. Microsoft revealed some campaigns from Chevorlet, Sprint and T-Mobile, which will launch with Kinect on November 4. 

    "With Kinect for Xbox 360, we are removing the last barrier to interactive television — the controller," said Mark Kroese, general manager of the Interactive Entertainment Advertising Business Group at Microsoft. "We have seen tremendous momentum from the advertising community, including big campaigns from Chevrolet, Sprint and T-Mobile. These visionary marketers are leading the entertainment revolution with ground-breaking campaigns that are highly engaging."

    For Chevy’s campaign, Kinect users will be able to test-drive the Chevrolet Volt in the game Kinect Joy Ride. In addition to this, after viewing a video ad on Xbox LIVE or on the Web, users will be able to unlock and download  Chevrolet Cruze, Camaro and Corvette cars to drive in the game. Chevy will follow that up with a New Year campaign in the Kinect Hub showcasing the same vehicles.

    Kinect for Xbox

    Sprint will sponsor the launch of "Kinect Adventures" with a co-branded retail experience on Xbox LIVE and a sponsored contest in which players of the game have the chance to get their pictures featured on Xbox LIVE. 

    T-Mobile will have fixed product placement throughout Kinect Sports, including volleyball net signage, custom bowling balls and foam fingers held by the arena audience. T-Mobile is also sponsoring a  Kinect Sports contest.

  • ChaCha CEO: We’ll Drop T-Mobile if They Implement the “Twitter Tax”

    Update: Gibbs is now reporting that T-Mobile’s move only affects messaging aggregators "that serve as kind of a middleman" between businesses and carriers. Companies with direct ties to T-Mobile ( a group that includes Facebook and Twitter) will reportedly not be affected.

    Original Article: According to reports, T-Mobile may start charging businesses extra for sending large amounts of texts over its network, beginning at the beginning of October. ChaCha, whose service is largely based on sending text messages to users, appears to be pretty pissed off at the notion. WebProNews received the following statement from ChaCha CEO Scott Jones, indicating as much:

    "If  T-Mobile moves forward with its “twitter tax” that is rumored to begin on Oct 1st, ChaCha absolutely will drop T-Mobile from our service.  T-Mobile is a carrier that doesn’t understand the realities of content businesses including Facebook, Twitter, ESPN, and ChaCha.  ChaCha has more than 15 million monthly unique users for whom we answer over 2 million questions every day. The vast majority of these answers are delivered by SMS text. T-Mobile is already getting paid by subscribers for these texts and they are paid something already by aggregators/publishers.  Now, they plan to impose an egregious and unacceptable tax.

    Scott Jones, CEO of ChaCha“Given that the costs to deliver text are miniscule, T-Mobile already makes profits from what they charge their customers, aggregators, and publishers.  There, T-mobile is “triple dipping.”  We don’t see any reason for this, other than greed.

    “This will be unfortunate for T-Mobile users who will either need to switch to another carrier to enjoy texting services, or access similar services via the mobile web and/or mobile apps (for which T-Mobile gets nothing incrementally). Starting today we will make it clear to our T-Mobile users that ChaCha would still be available on other carriers and/or via the mobile web or mobile apps. 

    “If T-Mobile moves forward they will give their subscribers reasons to consider other carriers and/or prevent defectors from AT&T/Sprint/Verizon from considering T-Mobile.  Also, their proposed pricing move will completely stifle innovation in the space, further harming T-Mobile customers.

    “ChaCha knows that our real-time “answers” and dbase of billions of answers is valuable and can be leveraged within any of these platforms.  We prefer that T-Mobile not take this step, but if they do, we will no longer provide our free SMS service to T-Mobile and shift the traffic to other carriers and platforms. It’s unfortunate for T-Mobile subscribers since they will miss out on ChaCha and many free services because of this short-sighted move by T-Mobile.”
    Colin Gibbs at GigaOm, who reported on the possible toll, notes that Verizon tried a similar strategy a couple years ago, but faced tremendous backlash, not unlike that being displayed from ChaCha, and abandoned the plan.

  • Walmart Family Mobile Offers Service With No Contracts

    Walmart has announced its own new wireless service brand, placing an emphasis on faimly savings. Walmart will launch Walmart Family Mobile as a post-paid plan available without a contract or multi-year commitment. 
     
    The company says it offers a family of three savings of up to $1,200 a year when compared to leading unlimited talk and text plans. T-Mobile’s network is being used, but the service will be sold exclusively through Walmart. 
     
    The first line is $45 a month, and each additional line is $25 a month. It offers devices from Samsung, Motorola, and Nokia, and includes Android devices. Users can upgrade anytime by purchasing a new device without having to pay extra fees or make contract commitments. 
     
    "Walmart Family Mobile makes it more affordable to build meaningful relationships with family and friends so that even when budgets are limited, time spent communicating with loved ones isn’t," said Greg Hall, vice president of merchandising, Walmart U.S. "This plan provides families with the flexibility to connect with each other without surprise charges and with the added benefit of one of the most trusted wireless network providers."
     
    Walmart Wireless"Walmart is known for great value and we’re pleased to offer our robust network of nationwide coverage for Walmart Family Mobile," said Jim Alling, Chief Operations Officer, T-Mobile USA. "This new service is an innovative approach, offering post-paid customers a low-cost alternative for unlimited voice, messaging, web and inexpensive international calling."
     
    Walmart will begin offering the service on September 20.

  • T-Mobile Unveils New Google Phone, G2

    T-Mobile unveiled its G2 Google smartphone with 4G. The phone is the first designed for T-Mobile’s HSPA+ network, which the company says covers 100 million Americans in more than 55 major metropolitan areas across the country. 

    The G2 is of course the successor to the G1, which was the first Android-powered phone. It is designed by HTC. It has a 3.7-inch screen and opens to a QWERTY keyboard, and comes with Android 2.2 and a snapdragon MSM7230 mobile processor. It comes pre-packaged with Google Voice, Google Voice Actions, Google Goggles, Gmail, Google Maps, Google Places, YouTube, Google Talk, and Google Earth. 

    It has an HD video camera, a 5-megapixel camera with LED flash and autofocus, support for Microsoft Exchange, and a pre-installed 8GB microSD memory card with support for up to 32 GB. Other features include: 

    G2 - The New Google Phone from T-Mobile and HTC– Dedicated Quick Keys for one-touch access to Google shortcuts and apps

     

    – Adobe FlashPlayer enabled Web browsing experience
     
    – Pinch and zoom functionality for Web browsing and photo gallery
     
    – 4GB internal memory
     
    – Built-in 3.5mm headphone jack, stereo headset and Bluetooth support
     
    – Swype text input for fast, accurate communication
     
    "T-Mobile ignited the spark that set the Android world ablaze two years ago with the launch of the world’s first Android-powered mobile phone, the T-Mobile G1, which remains an important milestone for both T-Mobile and the Android operating system," said T-Mobile USA chief technology and innovation officer, Cole Brodman. "Now, with the launch of the T-Mobile G2, we are re-teaming with our partners at Google and HTC to provide T-Mobile customers with another first — the first Android smartphone designed to deliver 4G speeds on our new network."
     
    "One of the advantages of an open platform is the opportunity for developers to create rich mobile experiences and seamlessly get those experiences into the hands of consumers," said Google VP, Engineering, Andy Rubin. "From new services, such as Voice Actions, to mobile applications, developer-led Android innovation is flourishing. On Android Market alone, the number of applications available to consumers has grown from just 50 applications two years ago to more than 80,000 applications today."
     
    "Two years ago, HTC and T-Mobile worked together to deliver the world’s first Android phone, the T-Mobile G1. From that start, Android has grown to be the leading smartphone platform in the U.S., and one of the most popular globally," said HTC CEO Peter Chou. "With today’s announcement of the G2, HTC and T-Mobile are once again bringing a breakthrough Android product to market."
     
    Current T-Mobile customers will get exclusive access to preorder the G2 starting later this month.

  • Major Mobile Carriers Teaming Up to Eliminate Credit Cards?

    Will the mobile phone replace the credit card? It sounds a bit like science fiction, but it appears that mobile carriers are trying to make it a reality.

    Bloomberg reports that AT&T, Verizon, and T-Mobile USA are "planning a venture to displace credit and debit cards with smartphones". The companies would work with Discover Financial Services and Barclays Plc to test a system starting in Atlanta and three other unnamed U.S. cities.

    "The trial would be the carriers’ biggest effort to spur mobile payments in the U.S. and supplant more than 1 billion plastic cards in American wallets," say Peter Eichenbaum and Margaret Collins in Bloomberg’s collaborative report. "Smartphones have encroached on tasks ranging from Web browsing to street navigation and now may help the phone companies compete with San Francisco-based Visa and MasterCard, the world’s biggest payments networks."

    Will Mobile Carriers Eliminate the Need for Credit Cards?Even if the mobile carriers are successful in their venture, it will be a long time before the credit card is truly replaced. Smartphone usage is growing, but these devices are a long way off from being in everybody’s hands.

    Meanwhile, it’s not as if the credit card companies are standing still in a stagnant pool of their old world ways. Visa and Master Card have both made moves recently that indicate they are going after PayPal, which is currently a big player in the mobile payments space.

    MasterCard announced a developer initiative place MasterCard payment technology in mobile and online apps, while Visa launched its own PayPal competitor starting in Australia.

    Om Malik at GigaOm has a good article on the mobile payments industry. He points out that a venture from the mobile carriers may hurt mobile payments startups. 

    Would you like to replace your credit cards with your mobile phone? Share your thoughts.