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AT&T (NYSE:T) said it now expects its proposed billion acquisition of T-Mobile USA to close by the end of the first half of next year, a few months later than it originally planned, according to a regulatory filing. 

In a filing with the U.S. Securities and Exchange Commission, AT&T said the deal will close in the first half of 2012, pending regulatory approval. Previously, AT&T had anticipated the deal closing in March 2012. The Department of Justice sued in August to block the deal on antitrust grounds, and a trial is set to begin Feb. 13. AT&T first announced the deal in late March 2011.

If the merger transaction does fall apart, AT&T will be required to pay T-Mobile parent Deutsche Telekom a billion breakup fee, which includes billion in cash and billion in spectrum and roaming agreements.

The legal troubles for AT&T grew after U.S. District Judge Ellen Huvelle ruled on Wednesday that Sprint Nextel (NYSE:S) and C Spire Wireless could continue parts of their lawsuit to block the AT&T/T-Mobile deal. While Huvelle threw out many of the claims Sprint and C Spire, formerly Cellular South, made in their filings, she ruled that the two could continue to pursue claims that the deal will harm the mobile device marketplace. 

Interestingly, AT&T also said in the SEC filing that it now expects its proposed .93 billion purchase of Qualcomm’s (NASDAQ:QCOM) 700 MHz Media FLO spectrum, which was announced in December 2010, to close by the end of the first quarter of next year, later than its previous expectation for the deal to close by year-end. The FCC needs to approve the license transfer.

In August the FCC said it would consider the AT&T/Qualcomm transaction side-by-side with the AT&T/T-Mobile deal. While the FCC did not formally combine the reviews of the two acquisitions, the move was a setback for AT&T and Qualcomm, which argued that the two deals should be evaluated independent of one another.

For more:
- see this SEC filing
- see this WSJ article (sub. req.)

Related Articles:
Judge allows Sprint, C Spire to continue AT&T/T-Mobile legal battle
AT&T prepares for October legal battles over T-Mobile deal
Google wants confidential Android info protected in AT&T/T-Mobile litigation
AT&T’s Stephenson: We will argue for efficiencies from T-Mobile deal
Sprint’s Hesse: DOJ lawsuit against AT&T/T-Mobile won’t prevent consolidation
Cellular South jumps into fray, sues to block AT&T/T-Mobile

FierceWireless

Mobile WiMAX carrier Clearwire (NASDAQ:CLWR) announced a five-year wholesale deal with United Online, the company behind the NetZero Internet service brand, extending its wholesale umbrella at a time when it is shuttering its own branded postpaid service.

The terms of the deal were not disclosed. NetZero customers will be able to access Clearwire’s network in early 2012, though the companies did not say exactly when the service will become available.

Clearwire and United Online said that consumers will be able to access the service by purchasing either a NetZero USB modem or a NetZero personal hotspot that can connect up to 8 Wi-Fi enabled devices simultaneously. Clearwire’s network currently covers around 130 million POPs. Clearwire spokesman Mike DiGioia directed questions on pricing, availability and devices to a United Online spokesman, who did not immediately respond to a request for comment.

NetZero started in 1998 offering free dial-up Internet, and in 2003 it launched NetZero Hi-Speed, which was the fastest dial-up service offered at that time. However, NetZero is clearly looking to expand, and noted Clearwire’s WiMAX network provides speeds of 6 to 10 Mbps with a wider range than Wi-Fi.

Clearwire’s NetZero deal comes after Clearwire disclosed that it will streamline its Clear-branded service to offer unlimited prepaid Internet service at per month. The move essentially removes its previous postpaid service plan options along with device leasing, activation fees, early termination fees and restocking fees.

Moreover, Clearwire plans to move to LTE-Advanced network technology, but that action is contingent on the carrier obtaining another 0 million in financing. Further, the carrier has said it needs between 0 million and 0 million to maintain its existing WiMAX network.

Sprint Nextel (NYSE:S), Clearwire’s majority owner and largest wholesale customer, recently announced its own 4G plans that involve building its own LTE network on its 1900 MHz spectrum–plans that did not include any mention of Clearwire. However, Sprint recently disclosed a non-binding agreement with Clearwire under which the companies will work to develop LTE roaming between their planned networks. Clearwire reports its third-quarter earnings after the market closes Wednesday.

For more:
- see this release

Related Articles:
Clearwire ditches postpaid service, offers prepaid unlimited at
Sprint inks deal with Clearwire, predicts up to B in value from iPhone
Sprint drops unlimited WiMAX data for mobile broadband plans
Sprint to launch LTE on 1900 MHz spectrum by mid-2012
Clearwire adds 1.9M wholesale subs in Q3

FierceWireless

Sprint Nextel (NYSE:S) and Clearwire (NASDAQ:CLWR) are working out the details of a new contract that would extend their existing wholesale deal for another three to five years, according to a report in Bloomberg, citing three unnamed sources who are said to have direct knowledge of the deal.

The contract will allow Sprint to use Clearwire’s network to provide service to its customers after the current deal expires at the end of 2012. Although the details aren’t final, the report said that the price Sprint will pay for Clearwire to handle its traffic is likely to fall.

A new wholesale deal with Sprint would provide a much needed boost for Clearwire, which has said it needs about billion in additional financing to deploy LTE and finance its existing WiMAX operations. However, according to the sources, Sprint won’t provide financing to Clearwire as part of the new deal.

Sprint announced Oct. 7 that it will launch LTE service by mid-2012 using its 1900 MHz spectrum and move away from WiMAX as its 4G technology of choice. In addition, the company said during its earnings call earlier this week that it had signed an agreement with Clearwire that essentially will allow the companies to work together toward a joint LTE network.

The agreement covers cell site selection, site builds, chipsets for devices and is intended to assure seamless handoffs between Sprint’s network and Clearwire’s LTE network.

For more:
- see this Bloomberg article

Related Articles:
Sprint inks deal with Clearwire, predicts up to B in value from iPhone
Sprint drops unlimited WiMAX data for mobile broadband plans
Sprint Chairman Hance vows company will reveal iPhone financial costs
Sprint’s stock plunges following LTE strategy conference
Sprint adds another 1.1M subs in Q2, along with 1.7M WiMAX devices

FierceWireless

The Communications Workers of America today released “As Goes Avianca: How One Company Represents the Problems and Challenges of the Colombia Free Trade Agreement & the Action Plan on Labor Rights.” The case study outlines the challenges that go unaddressed by the proposed agreement’s Labor Action Plan by looking at the actions of the Colombian-based airline as they relate to it.
CWA Union News

Last night on TV, we noticed that new commercial for T-Mobile’s family voice with data plan, called the “Best Plan Ever.”  Surprisingly, the T-Mobile gal’s dress seems to be no longer a shade of pink but a combination of both pink and orange, which may have think that it may be a precursor to be AT&T T-Mobile merger.

In another commercial Virgin Mobile takes on the T-Mobile gal implies Virgin Mobile is better and cheaper.

Let’s compare the T-Mobile plan with the plans mentioned in Virgin Mobile’s latest commercial.

According to the commercial, the T-Mobile Best Plan Ever has unlimited data, talk and text for .99 for each line.  You have to read the fine print because each line includes up to 2GB of full speed data per month, then reduced speeds after that. On top of the .99 per line are taxes which could be close to 20%.

In the Virgin commercial the Virgin Mobile spokesmodel points out that T-Mobile will be taken over by AT&t who is last in customer satisfaction.  The plan, the commercial is advertising shows .00 for unlimited data and messaging which only includes 300 minutes of talk. The Virgin .00 a month plan includes 1200 talk minutes while the a month plan has unlimited talk. Virgin Mobile data use greater than 2.5GB per month will be throttled to 256kbps starting in October. It you start today, you will at least have a month or so of unlimited data without throttling.  Virgin Mobile plans include most taxes, however sales tax and some fees may be added.  Both plans in October will be very close in price.  Data speeds on Sprint’s 3G network are much slower than the T-Mobile 4G data network.

If you compare T-Mobile prepaid with Virgin Mobile prepaid as Virgin does in their own chart, Virgin Mobile is the cheaper plan. However the advertised plans are very close. 

To determine which is better for you, check coverage in your area.  Sprint has better coverage in some areas while T-Mobile has better coverage and other areas.  T-Mobile also has a greater selection of subsidized phones which are cheaper.

The easiest things to compare in the two commercials are the spokesmodels’ dresses the T-Mobile gal wears what looks to be a silk fluffy full frou-frou dress while the Virgin Mobile gals wears a tight-fitting red short red dress which is obviously more stylish.

WIRELESS AND MOBILE NEWS

Just as AT&T announced this week that it would return 5,000 wireless jobs to the United States following its pending merger with T-Mobile USA, the U.S. Justice Department announced it was seeking to block the deal.
CWA Union News

Proving that solidarity is the key to victory, 4,400 determined CWA members at Kaleida Health in Buffalo, N.Y., learned early Tuesday that instead of taking a scheduled strike vote, they’ll soon be casting ballots for a new two-year contract.
CWA Union News

LightSquared received approval from its creditors to have Sprint Nextel (NYSE:S) take control of its spectrum should LightSquared default on its debt, according to a report in the Wall Street Journal.

The report which cited unnamed sources familiar with the matter, said LightSquared got its lenders, J.P. Morgan Chase and UBS, to give Sprint a second lien on LightSquared’s L-band spectrum. According to the report, the second lien is a critical part of the negotiations between Sprint and LightSquared on a network-sharing deal. Under the agreement LightSquared struck with its creditors, Sprint will have to pay the first lien holders .5 billion and will take control of LightSquared’s spectrum in the event of a default.

Representatives from LightSquared and Sprint declined to comment.

According to the report, under a network-sharing deal, Sprint would be paid in a mixture of cash and use of the spectrum. The report cautioned, however, that a deal might fall apart. LightSquared CEO Sandi Ahuja confirmed last week that the company had held talks with Sprint, but said there was nothing to announce.

Meanwhile, concerns continued to swirl around how LightSquared’s network interferes with GPS receivers. A final report on the issue was due to the FCC June 15, but a LightSquared spokesman confirmed to FierceWireless that the company is considering asking the FCC for an extension until July 1.

Tim Farrar, an analyst with TMF Associates, said the lien agreement is meant to give Sprint security in case LightSquared goes out of business. However, he said that Sprint would still be obligated to pay .5 billion on the first lien as well as payments to Inmarsat because of an agreement LightSquared has with the satellite firm.

“If they had a deal with Sprint to announce, this would have just been the background to the deal,” he said. “The fact that they came out with this means that there isn’t a deal yet. Until the GPS situation is resolved, it doesn’t really help.”

Farrar speculated that one reason LightSquared might ask the FCC for an extension on submitting the GPS interference report is to try and put together a winning bid for TerreStar Network’s 2 GHz MSS spectrum. Dish Network won the “stalking horse” bid for bankrupt TerreStar Networks’ assets with a .375 billion offer, according to bankruptcy court filings. According to the court papers, Dish will allow TerreStar to extend the deadline for bids until June 27, with a court-supervised auction set for June 30.

For more:
- see this WSJ article (sub. req.)
- see this Reuters article
- see this TMF blog post

Related Articles:
Dish Network lands .38B bid for TerreStar, reportedly outflanking MetroPCS
Seybold’s Take: Why LightSquared’s proposed system will interfere with GPS
LightSquared CEO Ahuja confirms talks with Sprint
Two government agencies say LightSquared’s network interferes with GPS
Lawmakers continue to press FCC on LightSquared GPS interference concerns
FCC’s Genachowski: We won’t let LightSquared operate without GPS interference resolution
Report: Sprint, LightSquared near B/year network-sharing deal

FierceWireless

AT&T’s acquisition of T-Mobile USA is good news. AT&T will build out broadband to provide service to 95 percent of the country and workers at T-Mobile will benefit from a management record of neutrality in organizing.
CWA Union News

Huawei is facing renewed opposition within the U.S. government over a small technology deal it completed in May, according to multiple reports. The news highlights the difficulties the Chinese vendor continues to face in cracking the U.S. market.

Huawei spent million in May to acquire some staff and intellectual property of the startup 3Leaf Systems, which provides server virtualization solutions. According to both the Wall Street Journal and the Financial Times, Huawei has decided to submit an application to buy the company to the Committee on Foreign Investment in the U.S., or CFIUS, which it did not feel it had to do earlier this year. The executive-branch agency reviews foreign acquisitions that might pose a threat to national security.

According to the Journal, the Pentagon took the unusual step of retroactively asking Huawei to submit an application to CFIUS for the deal. It is the first time Huawei has submitted such an application since CFIUS blocked Huawei and Bain Capital in 2008 from acquiring the technology firm 3Com.

The Chinese vendor insists it has nothing to hide. “From the outset, we’ve been very transparent,” Bill Plummer, vice president of external affairs for Huawei USA, told the Journal. “At that time the perception was because of the unique nature of the activity and the acquisition of the patents that it simply wouldn’t trigger a CFIUS review.”

The tensions over a relatively small deal are notable because of Huawei’s attempts to gain greater access to the U.S. mobile equipment market. The Journal reported earlier this month that Sprint Nextel (NYSE:S) decided to block both Huawei and ZTE from getting its multi-billion-dollar network modernization project because of mounting national security concerns about the vendors. Sprint has declined to comment on the topic, and Huawei and ZTE have said they have not been contacted by Sprint about the bidding process.

Nevertheless, Huawei has vowed to be patient as it tries to expand in the U.S. market. Charlie Chen, Huawei’s senior vice president for U.S. marketing, recently told the FT that eventually Huawei will land a deal with a major U.S. carrier. “It may take a long time. It may take three or five or 10 years, it doesn’t matter, we’ll get there,” he said.

For more:
- see this WSJ article (sub. req.)
- see this FT article

Related Articles:
Huawei keeps U.S. in focus, despite potential Sprint setback
Alca-Lu confident ahead of Sprint network bid
Report: Sprint excludes Huawei, ZTE from network project over security concerns
Former defense official joins Amerilink in Huawei lobbying bid
Lawmakers ask FCC to probe security risks from Huawei, ZTE
Amerilink adds new board members for Huawei’s lobbying campaign
Huawei outlines three-pronged plan to address security concerns

FierceWireless