Monday, December 19, 2011

Deutsche Telekom Gains $3 Billion Break-up Fee + AWS Spectrum

Deutsche Telekom confirmed that it is set to receive US$3 billion in cash from AT&T by the end of the year as the break-up fee for the failed T-Mobile USA deal.

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