We reported yesterday about AT&T’s epic fail to buy T-Mobile, but inaccurately surmised that the roaming agreement they would be entering into would be a 3G agreement in Europe. The details of the agreement have emerged, and it would draw into question if this was a win for T-Mobile and what they ultimately wanted.
The roaming agreement “contains a large package of mobile communications spectrum and a long-term agreement on UMTS roaming within the U.S. for T-Mobile USA.”
As part of the break-up fee, T-Mobile USA will receive a large package of AWS mobile spectrum in 128 Cellular Market Areas (CMAs), including 12 of the top 20 markets (Los Angeles, Dallas, Houston, Atlanta, Washington, Boston, San Francisco, Phoenix, San Diego, Denver, Baltimore and Seattle).
The UMTS roaming agreement for the U.S. in T-Mobile USA’s favor has a term of over seven years and will allow the company to improve its footprint significantly among the U.S. population and offer its customers better broadband coverage for mobile communications services in the future. Population coverage will increase from 230 million potential customers at present to 280 million. As a result of the agreement with AT&T, coverage will be extended to many regions of the U.S. in which T-Mobile USA previously had neither its own high-speed mobile communications network nor the associated roaming agreements.
This is a huge win for T-Mobile customers as they will gain additional 3G coverage and allow T-Mobile to expand into areas they previously were not able to. At the moment it would seem to make T-Mobile a very attractive service option in the US market.
Source: Deutsche Telekom