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NEW YORK AT&T Inc. said Sunday it will purchase T-Mobile USA from Deutsche Telekom AG in a cash-and-stock deal valued at $39 billion that would make it the largest cellphone company in the U.S.

The handle would dilute the digit of wireless carriers with national coverage from 4 to 3,cheap Girls Jackets outlet online shop, and is sure to face close regulatory scrutiny. It also removes a latent partner because Sprint Nextel Corp., the struggling No. 3 conveyor, which had been in talks to incorporate with T-Mobile USA, according to Wall Street Journal reports.

AT&T is immediately the country's second-largest wireless carrier and T-Mobile USA is the fourth largest. The acquisition would give AT&T 129 million subscribers, vaulting it past Verizon Wireless' 102 million. The combined company would serve about 43 percent of U.S. cellphones.

For T-Mobile USA's 33.7 million subscribers, the news doesn't swiftly alteration anything. Because of the long regulatory process, AT&T expects the donation to take a year to close. But when and whether it closes, T-Mobile America purchasers would get access to AT&T's phone line-up, including the iPhone.

The efficacy of reduced tournament in the cellphone industry is harder to fathom. Public amuse team Public Knowledge said that eliminating one of the four national phone carriers would be "unthinkable."

"We understand the results of preparations favor this higher prices, fewer choices, less innovation," said Public Knowledge president Gigi Sohn, in a statement.

T-Mobile has relatively cheap service plans likened with AT&T, particularly when comparing the variety that don't come with a two-year compact. AT&T CEO Randall Stephenson said one of the goals of the acquisition would be to move T-Mobile customers to beautiful phones, which have higher monthly fees. AT&T "will see hard" by keeping T-Mobile's no-contract plans, he said.

AT&T's general counsel, Wayne Watts, said the cellphone business is "an incredibly competitive mall," with 5 or more carriers in maximum important cities. He pointed out that prices have declined in the elapse ten-year, even for the manufacture has consolidated. In the maximum recent mega-deal, Verizon Wireless bought No. 5 carrier Alltel for $5.9 billion in 2009.

Stifel Nicolaus analyst Rebecca Arbogast said the deal will face a difficult reiterate along the Federal Communications Commission and the Justice Department. She expects them to look market-by-market at if the deal will harm competition. Even if regulators O.K. the acquisition, she added, they are likely to require AT&T to sell off parts of its business or T-Mobile's business. Verizon had to sell off substantial service areas to get clearance for the Alltel acquisition.

To quell regulators, AT&T said in a statement Sunday namely it would cost one appended $8 billion to distend ultrafast telegraph broadband into rustic areas. Instead of covering almost 80 percent of the U.S. population with its so-called Long Term Evolution,cheap Mens Coats outlet online shop, alternatively LTE network, AT&T's current goal would be 95 percent, it said. That means carpeting an appended district 4.5 periods the size of Texas. The web is scheduled to work live in a few areas this summer, yet the full build-out will take years.

The offer would assist the FCC and the Obama authority encounter their stated goals of sending high-speed Internet access to all Americans. They discern wireless networks as fussy to appointment that goal particularly in rural areas where it does not make economy sense to construct landline networks.

AT&T said its customers would behalf from the compartment fortresses and wireless spectrum the deal would bring. In some areas, it would add 30 percent more capability, AT&T said.

"It apparently will have a significant clash in terms of dripped cries and network extravaganza," Stephenson said.

AT&T would pay about $25 billion in money to Deutsche Telekom, Germany's largest phone enterprise, and stock that is equivalent to an 8 percent stake in AT&T. Deutsche Telekom would get 1 seat aboard AT&T's board.

Like Sprint, T-Mobile has been struggling to contend with many larger antagonists AT&T and Verizon Wireless, and its revenue has been largely smooth for three years. Bellevue, Wash.-based T-Mobile USA's subscriber calculate has stalled at equitable below 34 million, whereas it posts invariable profits.

Deutsche Telekom has been looking at radical moves to let it get more amount out of its U.S. holding, including a feasible composition with a U.S. partner.

There was a big hurdle to a T-Mobile USA-Sprint deal: The 2 companies use incompatible network technologies. The same hurdle would apply in a Verizon Wireless-T-Mobile USA deal. But the networks of AT&T and T-Mobile use the same underlying technology, so to some massive amplitude,cheap Mens Shorts outlet online shop, AT&T phones tin yet use T-Mobile's network, and vice versa.

The deal has been approved by the boards of both companies. Dallas-based AT&T can boost its cash portion by up to $4.2 billion, with a decrement in the stock makeup, at the peak of Deutsche Telekom receives at least a 5 percent equity ownership interest in the buyer.
The concert doesn't leave apartment for additional buyers to jump in with a higher command, AT&T said.
AT&T would finance the cash part of the deal with new debt and cash on its equilibrium sheet and will presume no debt from T-Mobile.
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AP Technology Writer Joelle Tessler contributed apt this report from Washington, D.C.