5G Technology World

  • 5G Technology and Engineering
  • FAQs
  • Apps
  • Devices
  • IoT
  • RF
  • Radar
  • Wireless Design
  • Learn
    • 5G Videos
    • Ebooks
    • EE Training Days
    • FAQs
    • Learning Center
    • Tech Toolboxes
    • Webinars/Digital Events
  • Handbooks
    • 2024
    • 2023
    • 2022
    • 2021
  • Resources
    • Design Guide Library
    • EE World Digital Issues
    • Engineering Diversity & Inclusion
    • Engineering Training Days
    • LEAP Awards
  • Advertise
  • Subscribe

AT & T Keeps Mum on T-Mobile Status, Touts Device Sales

By Staff Author | December 7, 2011

AT&T CFO John Stephens offered few details on the operator’s beleaguered merger with T-Mobile USA at an investor conference in New York today, saying only that the company was still working to salvage the deal.

“We continue to move forwards with our efforts to complete the T-Mobile transaction,” Stephens said during an address at the UBS Global Media and Communications Conference. “AT&T and Deutsche Telekom are motivated to complete the transaction and we continue to pursue the sale.”

When asked by an audience member what AT&T’s backup plan was in the event the massive transaction failed, Stephens declined to provide specifics, saying only that the company was working with Deutsche Telekom, T-Mobile’s parent company, to move the process forward.

AT&T recently withdrew its FCC application for the merger to focus on reaching a settlement with the Justice Department, which filed an antitrust suit to block the deal in August.

The rumor mill was buzzing last week with reports that AT&T would sell up to 40 percent of T-Mobile’s assets to Cricket parent Leap Wireless International. There were also conflicting reports that AT&T and Deutsche Telekom were considering forming a joint venture to skirt regulatory blocks to the deal.

If the merger falls through, AT&T will have to pay Deutsche Telekom $4 billion in cash and spectrum. AT&T plans to record the fee in its upcoming fourth-quarter earnings, a concession that the transaction may fail. Stephens downplayed the charge, calling it “simply an accounting matter… There’s a contractual obligation that if the charge is to become due, you have to record it.”

He said the fee would be less of a hit than it might seem on its face value because it was pre-tax. “You can do the math, but it’s a much smaller cash impact than the first impression may give you,” Stephens said.

The T-Mobile transaction loomed large over what Stephens described as an otherwise stellar quarter for AT&T. The company has been selling a record 100,000 smartphones per day and sold 6 million smartphones during October and November. With one month still to go in the fourth quarter, AT&T is set to break its previous record of 6.1 million smartphone sales in a single quarter, Stephens said.

Sales were buoyed by a “higher upgrades” from subscribers waiting for the new iPhone 4S. The company activated more than 1 million units of the popular smartphone during the first five days the iPhone 4S was available after its launch in mid-October.

Stephens conceded that subsidies for the iPhone and AT&T’s other smartphones were costly and would affect its fourth-quarter profits, but said that the expense was worth it over the long haul as customers spent more money on service plans. “It’s an investment we’re more than willing to make to grow our business,” he said.

Related Articles Read More >

High-directivity couplers optimized for 225 – 750 MHz applications
Integrated into IoT devices, iSIM poised to make inroads
Triple-radio and multiprotocol MCUs add application processors
5G vectors
How RedCap fits into 5G and IoT

Featured Contributions

  • Overcome Open RAN test and certification challenges
  • Wireless engineers need AI to build networks
  • Why AI chips need PCIe 7.0 IP interconnects
  • circuit board timing How timing and synchronization improve 5G spectrum efficiency
  • Wi-Fi 7 and 5G for FWA need testing
More Featured Contributions

EE TECH TOOLBOX

“ee
Tech Toolbox: Internet of Things
Explore practical strategies for minimizing attack surfaces, managing memory efficiently, and securing firmware. Download now to ensure your IoT implementations remain secure, efficient, and future-ready.

EE LEARNING CENTER

EE Learning Center
“5g
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest info on technologies, tools and strategies for EE professionals.

Engineering Training Days

engineering
“bills
5G Technology World
  • Enews Signup
  • EE World Online
  • DesignFast
  • EDABoard Forums
  • Electro-Tech-Online Forums
  • Microcontroller Tips
  • Analogic Tips
  • Connector Tips
  • Engineer’s Garage
  • EV Engineering
  • Power Electronic Tips
  • Sensor Tips
  • Test and Measurement Tips
  • About Us
  • Contact Us
  • Advertise

Copyright © 2025 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy

Search 5G Technology World