AT&T purchases T-Mobile to become only one GSM provider

AT&T will acquire T-Mobile USA from Deutsche Telekom for an approximate price of $39 billion. AT&T is the largest wireless network in the United States having nearly 95.5 million subscribers, while T-Mobile runs the fourth largest, with 23 million. Both networks use the same GSM technology and thus the merger will leave America with only one GSM provider.

Verizon, the second largest mobile network, and Sprint, the third, use the CDMA standard.

AT&T said that with the merger the company will bring its planned 4G LTE (Long Term Evolution) network to T-Mobile subscribers: "This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation's future," AT&T chairman and CEO Randall Stephenson said in a canned statement. "It will improve network quality, and it will bring advanced LTE capabilities to more than 294 million people."

AT&T claimed the deal would answer the call of the Federal Communications Commission (FCC) and President Obama to connect “every part of America to the digital age”.

“This transaction delivers significant customer, shareowner and public benefits that are available at this level only from the combination of these two companies with complementary network technologies, spectrum positions and operations," Stephenson's statement continued. "We are confident in our ability to execute a seamless integration, and with additional spectrum and network capabilities, we can better meet our customers’ current demands, build for the future and help achieve the President’s goals for a high-speed, wirelessly connected America.”