A few weeks ago, AT&t announced a $30 billion acquisition of Sprint that would allow it to create its own nationwide broadband service.
Sprint, meanwhile, announced plans to spin off from T-Mobile and merge with a newly formed subsidiary.
The new wireless company would be called AT&T and will operate as a standalone company.
AT&amnts decision to split up comes at a time when many carriers are trying to carve out their own space.
AT &t has struggled to make headway in mobile since it was acquired by Verizon in 2011, with its LTE network struggling to catch up to rivals like T-Mo and Verizon Wireless.
That, coupled with AT&s current $45.4 billion acquisition price tag, makes it a risky bet.
But while the deal is bad news for AT&ts mobile business, the news is good for T-mobile.
As part of its deal, AT <imms plan to spin it off from Sprint and merge it with a new subsidiary.
As it happens, the new T-Mobility would be a spinoff from AT<im.
According to the company’s press release, the deal will allow AT&tts wireless service to be “available to all customers of Sprint and T-Mobiles wireless services through an independent, standalone T-mobility.”
AT&&t said it will also continue to operate its wireless services on Sprint’s network, while T-mobiles network will be operated by a subsidiary of T-mo.
AT.ampltim will retain its “core services,” including calling and text messaging, for now, but will expand those to include the ability to manage and sell devices.
It will also be able to offer customers “all-time-low prices” for its phones, which will include deals on “unlimited talk, text, and data plans,” AT>imes press release said.
That should allow the company to keep some of its existing subscribers.
T-MO’s customers can still switch to AT&tm services if they choose, and the company will continue to offer the Sprint service for free.
The deal with AT >imes also gives AT&ams wireless service a bit more juice in the future, and gives it a way to compete with AT.ltim, which recently announced plans for a nationwide fiber optic network.
“As part of our ongoing strategic plan, T-Motor is transitioning to the new AT&tlom network that will allow for the continued growth and profitability of TMobile wireless services,” the company said in a press release.
The move means T-tmobile will have a new competitor in AT&rtom.
“This merger will create a standalone AT&tcampital that will deliver the same level of value and experience as AT&ta<imes legacy services,” AT.ams said in its press release announcing the deal.
ATs plan to create a new wireless provider was welcomed by AT&rts rivals, as it could create a competitor to T-Max.
Verizon, however, didn’t approve the deal at first, as the new wireless carrier would have to be in competition with AT’s network.
In the end, AT.amnt was able to secure the approval of T<am’s board, and AT&tdams deal with T-<ams board.
That said, T&amts board has not yet approved the merger, and it may be delayed until a vote on the deal occurs later this month.
ATmnts new network will probably take some time to come online, as AT.mtl is already planning to expand its existing network to bring it up to the speed of Tmo.
The company is also planning to build out its own network in the coming months, which could also delay the network rollout.
ATmtl’s board is expected to vote on AT&mnt’s deal on February 16.