T-Mobile to buy SunCom for $2.4B
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Filed in News, T-Mobile
Looking to expand their coverage nationally, and reduce roaming charges, T-Mobile has entered into an agreement to purchase SunCom for $1.6B and assume $800M of debt. Instead of just picking up SunCom’s 1.1M customers, T-Mobile will have increased its network coverae by "15 million potential users to 259 million in 98 of the U.S.’s 100 most important regional markets." While this aquisition won’t officially go down until the second quarter of ‘08, I’m sure we’ll be hearing more about it soon. Hey, as long as it improves your coverage, we’re all for it T-Mobz! Check out the email from Robert Dotson, CEO of T-Mobile after the jump!
At our core, T-Mobile will always be a growth company. We do that chiefly by focusing on the wants and needs of our customers and then offering superb products and services, all combined with an outstanding calling experience and award-winning customer service. By focusing on what we do best, we’re well positioned to win new customers and ensure existing customers stay with us for years to come.
But sometimes, growing also means identifying other quality wireless companies that would make sound additions to the T-Mobile family. Such an opportunity has presented itself today.
I am pleased to announce T-Mobile and SunCom Wireless have entered into a definitive merger agreement. SunCom currently serves more than one million customers in North Carolina, South Carolina, Tennessee, Georgia, Puerto Rico and the U.S. Virgin Islands. The company operates on a GSM network and has provided roaming service to T-Mobile in these markets since 2004.
The strategic fit of the SunCom operations is near-perfect. It rounds out our domestic footprint, allowing us to serve 98 of the top 100 markets, and significantly benefits our financial position by reducing roaming expense.
Furthermore, it adds a talented group of employees that will enable us to serve SunCom customers with industry-leading national products and services available under the T-Mobile brand.
Following the close of the transaction, T-Mobile expects to fully integrate SunCom’s network and operations into the T-Mobile network. We’re committed to providing SunCom customers a smooth transition over to T-Mobile’s high-quality, innovative wireless products and services. We’re also excited about delivering SunCom customers new services such as our popular myFaves™ offering; our broad geographic reach on our highly regarded wireless network, and our industry-leading customer service.
Additional details about this particular transaction are included in a press release which is available below.
Completion of the merger is expected to occur in the second quarter 2008 although it will be subject to SunCom stockholders and certain regulatory approvals. In the meantime, I would encourage each of you to help us finish
2007 strong. Execution on our “Big 5 Initiatives” continues to be our top priority.
Before closing, it is important we all thank René Obermann, Chief Executive Officer of Deutsche Telekom along with his leadership team for their continued belief in T-Mobile USA. This merger agreement is another strong indicator of the confidence DT has in the U.S. business and our ability to continue driving profitable growth for the overall company. Frankly, this merger agreement would not have been possible without their support.
This is an exciting time to be here and all of us can take pride in this latest chapter in the T-Mobile story.
Robert Dotson
CEO & President
T-Mobile USA
Way to go T-mobile!!!
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Hooray!! This means that we finally have a chance at T-Mobile in NC. This is something I have been waiting for forever. Now to just wait out my contract with the Death Star
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With Tmo buying SunCom I can officially change carriers pending their service in PR, sadly if Tmo doesn’t release a 3G line with this merger I mighthave to just wait it out or stick to the company formally know as Cingular/ATT.
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Now this is what I’ve been saying and saying, more than 3G service t-mobile needs a much needed bump in coverage area. With this investment they will most likely see a much greater turnaround profit from releasing 3G nationwide seeing so many more markets will be open to them and so many more potential customers.
Next up hopefully, that nationwide 3G release and a few exclusive phone releases!
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This means that T-Mobile will FINALLY have native coverage in the Carolina’s!!! Glad that I held out.!!
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T-Mobile needs a lot more coverage than this buyout will give them.
Their 1900Mhz service leaves a lot to be desired.
AT&T is still the best GSM choice.
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At least you can give T-Mobile credit…they still provide the best customer service and I have tried AT&T they are not that great.
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if t mobs serv don’t work doesn’t att roaming appear anyway.att customers just want to hate.drink u some haterade fool
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At one point Cingular (prior to switching back to AT&T) cancelled roaming aggreements with T-Mobile in the Carolina’s. Since the change I’ve been able to roam again on AT&T but who knows for how long.
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As long as you are in a city or big town or along the interstate T-Mobile is fine. But for the rest of the people, T-Mobile is very lacking.
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It’s good compatition for ATT and hopefully will drive down data prices for customers.
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This is definitely something that should have happened long ago! Hopefully, it’ll spark more moves inthe wireless industry.
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T-Mobile is a million times better than AT&T with thier horrible customer service. T-Mobile has coverage in almost everyplace you go, and if your looking for coverage in the cornfields you should be with Verizon.
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You all forget, suncom is an att throwback, whats gonna happen when att pulls the roaming agreements from suncom, as they will now be owned by t-mob.
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uh, my guess is they wont need it as they will have more coverage areas with tmobile. So let att pull the roaming agreement.
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Who needs there roaming if u now cover almost everywhere.. This was a smart buy with the profit tmo is going to be making they can roll out better services.. Such as 3g or skip it and goto 4g to be on a playing field of there own.. This will be the END of att. Our plans are cheaper and the iphone has come on gone. So now its going to be who can save u the most money and we know who that will be
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SunCom provides service in these areas:
South Carolina
North Carolina
Georgia
Tennessee
Puerto Rico
So this will be a big step for Tmobile as these are well populated areas.
Tmobile, always thinks about the customers.
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i’m all for this merger. i live in south carolina, but spend most of my time on suncom or trying to grab a signal off of cingular/att. i still think this is one of the best decisions that t-mo could have made. it’s about time they’ve decided to step their game up.
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This is great news for t mob… im ready for it
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“i’m all for this merger. i live in south carolina, but spend most of my time on suncom or trying to grab a signal off of cingular/att.”
This is where those roaming agreements come into place that you all casted away, never once through any of these comments does anyone say their devices are trying to grab a T-Mobile tower, which means T-Mob may be gaining the Suncom towers, but they will STILL need to expand the reach of their already existing towers to meet with the newly purchased suncom ones.
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I think this is horrible i have had the suncom unplan since 6th grade since it was a small area. I have never had any problems and love my coverage and my phone. I want to know what will happen with the un plan unlimited mins text and etc for 69.99. I think this will be the end of my contract since i dont want t mobile they have ugly phones and etc.
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I have Suncom and my coverage stinks. I have five phone on my plan and we have a hard time getting signals where we go. I’m hoping that with T-Mobile, things will be different.
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FIERCE NEWS yet i want to know something.? If i buy a T-mobile phone in Connecticut, I currently Live in Puerto Rico, can i just use it normally[if Suncom is already T-mobile] not Roaming cost, can i pay it here[PR]?
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I hope that the UNPLAN stays intact. I’ve been a SUNCOM unplan customer for many years and I’ve got ZERO complaints!!! I talk when I want to whom I want for as long as I want….No minute watching, just talking. If T-mobile gets rid of that….well let’s just say it will really suck.
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True, what will happen to the UNPLAN? I wonder if it’ll stay intact? Many people chose SunCom for that sole purpose - to have unlimited mins at one fixed price per month(That’s why I chose SunCom over other carriers). Wonder if T-mobile will keep that plan?
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