T-Mobile gains cash, spectrum, roaming agreements from failed AT&T deal

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Deutsche Telekom, owner of T-Mobile USA, has revealed more details about the break-up fee that it will receive from AT&T since the two companies have abandoned the effort to merge AT&T and T-Mobile.

T-Mobile USA stands to receive $3 billion in cash from AT&T, as well as AWS spectrum licenses in 128 markets, including such top markets as Los Angeles, Dallas, Houston, Atlanta, Washington, Boston, San Francisco, Phoenix, San Diego, Denver, Baltimore, and Seattle. In addition, T-Mobile will gain a UMTS roaming agreement from AT&T that lasts for seven years and expands its footprint by 50 million residents to 280 million. T-Mobile claims that the roaming agreement will allow it to offer "better broadband coverage for mobile communications services in the future."

Though it may seem like T-Mobile is coming out of the failed acquisition in good shape, it still does not have plan for an LTE network - that we know of at least, and that puts it at a bit of a disadvantage compared to the other big players (Verizon Wireless, AT&T, and Sprint), which either already have LTE networks, or have planned to deploy them. T-Mobile's flavor of 4G services is based on HSPA+ technology that, while still fast by today's standards, does not have the expandability afforded by LTE. Deutsche Telekom says that the $3 billion in cash from AT&T will go a long way to reducing T-Mobile's outstanding debt, but it does not say if it will make future investments to expand the network or possibly come up with a plan for LTE service. [via Phone Scoop]