In the evening of August 13, Beijing time, according to a letter accidentally leaked by AT & T, the company will increase the 4G LTE network coverage rate in the United States from the initial 80% to 97%, and will add an additional $ 3.8 billion in investment. .
According to Wireless Week, a website of the US wireless communications industry, the edited letter was posted on the website of the Federal Communications Commission (FCC) on Friday, but was quickly withdrawn. The letter was issued by AT & T ’s legal company, which stated that AT & T promised to provide LTE services to 55 million rural Americans, and will therefore add an additional $ 3.8 billion in capital expenditure.
The executives of T-Mobile and AT & T both said that one of the benefits of the US $ 39 billion merger is the expansion of 4G network coverage. The letter pointed out that the transaction will help AT & T "better withstand the increased capital investment and lower returns for deploying LTE networks to more than 97% of the US population."
If the population coverage rate is to be increased by 17%, the total land area covered by the entire network will be tripled. AT & T originally planned to cover 80% of the US population, with a land coverage rate of about 20%. But if the population coverage is increased to 97%, the corresponding land coverage will increase to 55%.
The document shows that AT & T plans to upgrade 44,000 nodes in the next two years: 8,000 this year, 16,000 next year, and 20,000 in 2013. To increase coverage as promised involves 18,000 cellular base stations. AT & T has advanced the LTE deployment plan by one year, and plans to "substantially complete" the network upgrade by the end of 2013. The company plans to cover 70 million customers with 4G services by the end of this year.
As AT & T's biggest competitor, Verizon's LTE plan was launched almost a year ago. The company's 4G network was launched in December last year in 38 cities across the United States, covering 110 million Americans. The company plans to cover the entire United States by 2013.
AT & T stated that any confidential information contained in this letter is consistent with the company's previous statement. The spokesman said: "There is really no news. The confidential information contained in this letter is completely consistent with the documents previously released by AT & T. This proves that after working with T-Mobile, we strive to cover 4% LTE mobile broadband to 97% of the United States. The importance of the population. Without a merger with T-Mobile, AT & T cannot achieve this expansion plan. This merger will release billions of dollars of investment and create thousands of well-paid jobs. This is the current economic downturn. urgently needed."
But there are also insiders who attacked the necessity of the merger of AT & T and T-Mobile. Critics say that if only a new investment of $ 3.8 billion is made, why should it be achieved through a merger where the transaction volume reaches 10 times its value? Sprint once questioned this. The company's CEO Dan Hesse pointed out at the Congressional hearing in May this year: "We don't believe that this acquisition can achieve this goal. Even if it can be achieved, what is the cost? It is worth reducing a competitor for this purpose. ?"
AT & T announced the acquisition of T-Mobile in March this year. But the review by the US antitrust agency may last for a year. There are reports that AT & T has hired investment banks to provide advisory services in order to sell some of its assets, thereby prompting the transaction to be approved.
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