AT&T agrees to buy T-Mobile USA from Deutsche Telekom for $39 billion

AT&T and Deutsche Telekom have entered into a definitive agreement for the sale of T-Mobile USA for $39 billion in cash and stocks. The combined customer base of this upcoming behemoth will be 130 million humans, though the agreed deal will have to pass the usual regulatory and closing hurdles before becoming complete. The two companies estimate it’ll take them 12 months to get through all the bureaucracy — if they get through, the proposed network merger will create a de facto GSM monopoly within the United States — but we don’t have to wait that long to start discussing life with only three major US carriers. AT&T envisions it as a rosy garden of “straightforward synergies” thanks to a set of “complementary network technologies, spectrum positions and operations.”

One of the other big benefits AT&T is claiming here is a significantly expanded LTE footprint — 95 percent of Americans, or 294 million pops — which works out to 46.5 million more than AT&T was claiming had it gone LTE alone. Of course, T-Mobile has never put forth a clear strategy for migrating to LTE, suggesting that AT&T plans on using the company’s AWS spectrum to complement its own 700MHz licenses as it moves to 4G. You might be groaning at the thought of yet another LTE band, but it’s not as bad as you might think: MetroPCS already has a live LTE network functioning on AWS, so there’s precedent for it. For further details, hit up the gallery below, the Mobilize Everything site, or the official press release after the break.

In the event of the deal failing to receive regulatory approval, AT&T will be on the hook for $3 billion to T-Mobile — a breakup fee, they call it — along with transferring over some AWS spectrum it doesn’t need for its LTE rollout, and granting T-Mo a roaming agreement at a value agreeable to both parties.

Google Circles – The latest Social Network

Online news websites are currently rife with talk of search engine giant Google apparently planning to launch a new social networking service imminently, dubbed Google Circles. But what is Google Circles exactly? And what can the service add to the already oversaturated genre of social networking?

The new service is rumoured to be one which allows its users to share status updates, links, videos and other media with friends and acquaintances. Nothing new in that regard then! However, the grape vine suggests that the biggest bonus of Circles is that is offers far more privacy than its competitors allowing the user to share media with people in certain “circles” only (for example, “co-workers”, “school friends” or “family”) instead of sharing with everyone at once. This is the case with social networks such as Facebook and Twitter.

Google Circles might seem familiar for another reason too. The service was once used for a very short period of time by competing search engine Lycos back in 2004, before the rise of the global popularity of Facebook started.

At the time, David Kim (CEO of Lycos) promoted the service as “a one-stop shop for sharing things, discussing and staying in touch with favourite circles of people.” The CEO added that Circles helps one to be “more efficient at socializing.”

The situation just aids to prove that ideas can only be successful if people actually hear about them and it goes without saying that Google have a far larger audience than Lycos ever has.

The employees of Google are remaining very tight lipped regarding the supposedly hijacked service however, only stating that the company would not comment on “rumour or speculation.” Although the number of people with Google accounts is escalating, I would be concerned that Google’s current services – and therefore; probably Circles as well – will be restricted to account holders only, which could potentially affect uptake. Paradoxically, signing up to use Facebook or Twitter can be done with any email address.

Lack of universal usage is the only complaint I have regarding services like GTalk – I wish all my friends had Google accounts so that I could communicate with them all using this facility! It remains to be seen if Circles will be enough of a hit with web surfers to tempt more individuals over to the G side.