In a filing with the Federal Communications Commission, AT&T Inc. (T) said T-Mobile acquisition would allow it to deploy 4G LTE service to more than 97 percent of Americans — up from the 80 percent planned before the deal was announced.
The merger would “promote, not diminish competition,” improve existing service for wireless customers, and help accommodate the growing demand for wireless data usage, the company said.
The results were mostly in line with expectations and exhibited seasonally normal 36% sequential drop, with continued momentum in wireless investments despite coming in below our estimates. Wireless capex grew 54% year-over-year, compared to 50% year-over-year growth in fourth-quarter 2010.
In a filing seeking the Federal Communications Commission's approval of the deal, AT&T, the No. 2 U.S. mobile carrier, argued that the merger would spur innovation and economic growth by allowing it to improve the quality of its services. No. 3 mobile operator Sprint Nextel (S.N) opposes the deal on the grounds that it would stifle innovation and competition.
AT&T pointed to a 10.2 percent growth in wireless revenue, to $15.3 billion, and an increase of 2 million mobile customers during the quarter as reasons for the strong quarterly results. AT&T, now with 97.5 million mobile customers, reported its largest first-quarter increase in mobile subscribers.
Verizon Wireless, the current market leader, would become the second biggest mobile provider if the deal goes through. Verizon Wireless is a venture of Verizon Communications (VZ) and Vodafone Group Plc (VOD.L). Verizon has declined to comment on the merger.
In 2010, AT&T says it added 50 new cell sites in Mississippi and upgraded some 90 existing sites to mobile broadband.
AT&T's Merger With T-Mobile May Cost Tower… by Bloomberg
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