Gadgetory

what's up everyone jon rettinger from technobuffalo here and if i look a little paler than usual because i'm sick like not in the headset well probably a little bit of that but also like Oh sick but while I'm sick I spend my time reading tech news because nerd alert what I like to do that's why ball is sort of done and there's been some humongous news this weekend that really caught I think most analysts most journalists most bloggers most customers completely off guard AT&T acquisition of t-mobile was completely surprising so I wanted to run down the facts up getting a lot of questions about what this is going to mean for the consumer and I wanted to sort of share my opinions and thoughts about what it means for you if you're a t-mobile customer you're an AT&T customer or you're just follow the cellular industry there's a lot to absorb here so first the facts it is a 39 billion dollar acquisition that is a lot of 0 you think about thirty nine billion dollars is not a small chunk of change now you could get it on the grand scheme of money in the world it's a pity but thirty nine billion is 39 million holy smokes it's going to serve probably close to a hundred and thirty million customers now this combined powerhouse of AT&T and t-mobile so how does this deal breakdown chemo news reporting that t-mobile's parent company a Deutsche Telekom may have massacred that pronunciation if I did tell me I found to put off properly and I'll make sure I correct in the next video is going to get 25 billion in cash money for bats t-mobile acquisition they're going to get 14 billion in stock which is going to make them an eight percent stockholder in AT&T so just because this purchase or intent to purchase was announced first does not mean it's going to go through the Department of Justice has to do a very thorough due diligence you may hear that term due diligence he's quite a bit essentially what that means just do a ton of research and make sure that this is not going to create a monopoly when you start thinking of communications and telephone monopolies AT&T tends to sort of always be involved with them so the reasons is Mike create monopolies we'll talk about the reasons may be alone and then I'll talk again the belt maybe why I think it's going to happen or not happen so there are right now to generally prevailing cellular technologies in the u.s. there is one which runs on a cdma network which just doesn't use a sim card and 4G aside that is how Verizon and Sprint do their networks it's cdma no sim card you have to dial in a number on the back and that sort of activate your phone to oversimplify explanation and there's another standard called gsm which is sim cards and that's what AT&T and t-mobile use so there are different bands served in that gsm range you may have heard edge mentioned it's commonly now called a 2g network AT&T and t-mobile essentially share most of the same bands forehead with a few exceptions in some regions primarily if you've heard maybe a quad band edge phone you wouldn't have any problems using it on ATT or tmobile and the majority of phones now swim there are some exceptions I generally are at least quad band edge so now let's talk about three g one g more t-mobile has a very strong 3g network with hspa+ which are now also sort of calling for d which we're also going to talk about keep saying we're going to talk about going to talk about but we are going to get to it so from the 3g world t-mobile and AT&T use different spectrums the spectrum is just the i guess the signal that's being sent over the air how it gets delivered to the devices again over simplified explanation but there are different spectrum so 850 900 1700 all that it's just how it gets to your phone and if your phone doesn't support spectrum the job can get the service so AT&T are both gsm technology as I mentioned and both have different 3g bands so what could happen here is t-mobile or the new AT&T could potentially open up their 3g spectrum to make the phones or future phones compatible with one set of standards for 3g communication that also translates to 4g AT&T is rolling out LTE which is another gsm-based 4G technology coincidentally one of the ones that verizon is using to make that even more complicated and t-mobile has sorta said maybe we're going to look at LTE but we haven't really given a plans for it but look at our hspa+ network which is super fast and probably could be considered 4G and so I'm a their branding it as such so now AT&T is going to have control of this 4g spectrum you might hear called AWS that t-mobile has so AT&T is now going to have a complete control and if this deal gets approved have complete control over essentially all the gsm phones in the US now there are some smaller regional carriers and there are some M envios ever call that resell broadband spectrum resell wireless spectrum but primarily AT&T would be the purveyor of all this gsm business and that's where we might see a potential monopoly that leaves this AT&T t-mobile behemoth competing against verizon and sprint it was widely assumed that sprint was going to be purchasing t-mobile and that would have been less of a monopoly she would have had two different technologies now we've got gsm essentially going to be the de facto standard moving forward in the u.s. because of install base there's so many customers that are going to be on it it's going to be tough for manufacturers or sorry carriers rather like sprint and probably verizon as well going to feel a pressure as far as securing these mobile devices if you are at cell phone manufacturer let's say you were AT&T or samsung and you were making a phone and you wanted to maximize your profits up for this phone you could make it a GSM based phone which is a much more of a global and can be used by potentially al 130 million Americans as well as people all over the world or you can make a cdma version which could be used on one carrier in the US and not that many carriers abroad what would you choose the answer is very very very simple it's going to greatly reduce if this deal goes through the handsets that are going to be available to verizon and sprint now variety less effect that they're moving to a 4G standard similar to what t-mobile has 118 T is doing moving forward LTE but poor Sprint is stuck with wimax which is another 4G standard to confuse everything that's not really had going to have the longevity of LTE so it's going to force sprint essentially to go LT it's going to force rising to commit further to LTE and sort of move away from that cdma back call unfortunately so this is a very complicated rambly type video I got a lot of thoughts on this is this deal good for the consumer nope this deal is not good for the consumer at all you're going to have a lot more phone choices certainly on this new 18 t-mobile network I like that ATT and tmobile network certainly is going to be a lot of phone options available but there's going to be less incentive for this behemoth to compete certainly we've seen Verizon and Sprint when they have to lower the data rates may have to offer more minutes and such because the competition there's going to be much much much less competition however is this a monopoly it is certainly not a monopoly well it might not be best with consumer in the long run AT&T and t-mobile definitely have a right to this merger and I do think the Department of Justice is going to prove this although probably it's going to take about 12 to 18 months so does this mean that t-mobile something gonna get the iphone no it's not just going to show up on t-mobile least until this merger is going to be done it's not going to affect any current contracts at you're into tmobile where it might affect you is if your contract is going to be up in a year or a year and a half once this deal is consummated you know then you're probably looking at new data plans perhaps and you on your phone and such but at least if your current customer stock in effect anything t-mobile has said many times since it was announced that all contract are going to be honored you are going to probably have to hear your new pricing scheme went to sign new contracts but that's sort of the way it goes so what's going to happen not sure I think it is going to get approved I think it's going to offer many many many more handsets to gsm folks among us it's going to really force verizon and sprint to compete innovate I wouldn't be overly surprised to start hearing rumors and grumblings of a verizon takeover of Sprint or at least potential buyout of spring so this is a very long rambling I guess old school John for lakers how video and I just sort of stare at you and talk curious you guys watch this one what you think about this buyout do you think it's a good thing do think it's a bad thing are you outside the country outside the US and you really don't care you're sick of all the news i like to hear what you guys have to say that I'm asked her the pronunciation of deutsche telekom telecom i think i pronounced correctly but don't should part probably not but just curious what you guys had to hear say about all this I'm sort of been following it very closely TechnoBuffalo of course they tunes the TechnoBuffalo for all of this merger news i'm jon rettinger i'll see you next video buh-bye