What the AT&T (T), T-Mobile Deal Means for Apple's (AAPL) iPhone (S)
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In 2010, Americans that wanted to own an Apple Inc. (NASDAQ: AAPL) iPhone had one choice, AT&T Inc. (NYSE: T), as the wireless carrier was the only provider of service on the popular device.
Fast forward just a few months, and the iPhone is set up to be made available on effectively three of the four major U.S. carriers, as AT&T has agreed to acquire T-Mobile from Deutsche Telekom, adding its 33.7 million subscribers to its base of 95.5 million.
Apple had already brought the iPhone to Verizon (NYSE: VZ) in February, leaving Sprint Nextel (NYSE: S) as the only major U.S wireless provider with out support for Apple's smartphone.
Deutsche Telekom had stated last fall that lack of the iPhone made it difficult for T-Mobile to gain ground in the U.S.
"The U.S. used to be a cash cow for Deutsche Telekom but it has struggled there since 2008 and has been forced to invest more to keep existing customers and attract new ones," a report from the Wall Street Journal stated.
The deal will also give iPhone users access to a network with ultra fast HSPA+ coverage, which will allow AT&T to provide improved coverage and accelerate its rollout of 4G networks.
It remains to be seen how long it will take AT&T to leverage its new networks. Also the deal is expected to face rigorous regulatory scrutiny, pushing the close fo the deal through the end of the year.
Fast forward just a few months, and the iPhone is set up to be made available on effectively three of the four major U.S. carriers, as AT&T has agreed to acquire T-Mobile from Deutsche Telekom, adding its 33.7 million subscribers to its base of 95.5 million.
Apple had already brought the iPhone to Verizon (NYSE: VZ) in February, leaving Sprint Nextel (NYSE: S) as the only major U.S wireless provider with out support for Apple's smartphone.
Deutsche Telekom had stated last fall that lack of the iPhone made it difficult for T-Mobile to gain ground in the U.S.
"The U.S. used to be a cash cow for Deutsche Telekom but it has struggled there since 2008 and has been forced to invest more to keep existing customers and attract new ones," a report from the Wall Street Journal stated.
The deal will also give iPhone users access to a network with ultra fast HSPA+ coverage, which will allow AT&T to provide improved coverage and accelerate its rollout of 4G networks.
It remains to be seen how long it will take AT&T to leverage its new networks. Also the deal is expected to face rigorous regulatory scrutiny, pushing the close fo the deal through the end of the year.
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