AT&T is hoping that a new deal with Leap Wireless will save its plans of merging with Deutsche Telekom-owned T-Mobile USA.
The deal would see Leap purchasing both T-Mobile’s customer base and most of its wireless spectrum, while AT&T would retain a smaller portion of the spectrum, according to a New York Times report yesterday.
It’s unclear exactly how an AT&T/Leap deal would divide up T-Mobile’s assets, since those details haven’t been released. But VentureBeat as previously reported, AT&T might be willing to divest as much as 40 percent of T-Mobile USA’s asset. It’s thought that a divestiture of this size could change the minds of the Department of Justice and the Federal Communications Commission — both of which have taken issue with the merger.
Leap, which owns and operates the Cricket Wireless brand is primarily in the business of prepaid wireless service. If the AT&T merger does not go through, Leap could purchase T-Mobile’s assets, as it doesn’t look like Deutsche Telekom is interested in continuing its U.S. business. Such a purchase would certainly raise Leap’s national profile, too.
June 5th: The AI Audit in NYC
Join us next week in NYC to engage with top executive leaders, delving into strategies for auditing AI models to ensure fairness, optimal performance, and ethical compliance across diverse organizations. Secure your attendance for this exclusive invite-only event.
AT&T and Deutsche Telekom first announced plans for AT&T to acquire T-Mobile USA for $39 billion in March 2011. T-Mobile, which is the fourth largest wireless carrier, has struggled to compete against Verizon, AT&T and Sprint. So, selling to a competitor for a large sum is an attractive option, while AT&T is interested in swallowing up T-Mobile to improve its wireless network infrastructure.
