AT&T to give T-Mobile spectrum, roaming deal

T-Mobile USA will receive spectrum licenses in 128 U.S. markets and a seven-year roaming agreement that will expand its reach by 50 million potential subscribers, in addition to US$3 billion cash, after AT&T dropped its deal to merge with T-Mobile.
AT&T will give T-Mobile blocks of AWS (Advanced Wireless Services) spectrum in 128 Cellular Market Areas, including 12 of the 20 largest in the U.S., Deutsche Telekom said. The carrier will gain spectrum in San Francisco, Boston, Atlanta, Washington, Los Angeles, Dallas, Seattle, and other metropolitan areas, which should help it to serve more subscribers with higher speeds.
In addition, T-Mobile will enter into a seven-year roaming agreement with AT&T, which Deutsche Telekom said would allow T-Mobile to reach areas where it has not had a high-speed network or a roaming arrangement until now. With the roaming deal, T-Mobile will reach 280 million U.S. residents, up from the current 230 million.
Deutsche Telekom expects to receive the $3 billion payment by the end of this year. The company said the activation of the breakup deal, which it called one of the largest in history, did not affect its profit forecast for its 2011 financial year.

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