June 08, 2011

AT&T makes bid to acquire T-Mobile for $39 billion

New York, NY – June 08, 2011 – In the race for mobile subscribership, AT&T Inc. has most certainly made a bold move with its bid to acquire T-Mobile for an incredible $39 billion in cash and stock. This merger would yield north of 130 million subscribers. “Merging the two networks means that you're going to have a nationwide 3G and 4G network that's really able to serve almost all Americans,” said Sascha Segan, lead analyst for mobile at PCMag.com. “Rural T-Mobile residents could benefit from AT&T's network, and city-dwellers (yes, even those with iPhones) could get a boost from T-Mobile,” he said.

There is no doubt that we are looking at some sort of re-monopolization in the telecom sector. As large as this deal appears to the general public, it would be foolish to discount some of the smaller players who are making major headway in the international mobile long distance arena. Metro PCS (PCS) is one example of a major player that is using the prepaid model for domestic talk and text to lure foreign-born users to their product. One catch to their international plan is that calling access is restricted to landline only. PCS, which is valued at well over $6 billion, has to search for that partner who can boost their revenue and subscribership by expanding their abilities and allowing for international mobile access to the receiving end. A merger or acquisition in this arena can turn a company like QT Talk Inc., who owns the ever present Pure Minutes product that is rapidly converting legions of calling card users into subscribers on their virtual ANI platform, into a multi-billion dollar corporation overnight. QT Talk is a facility-based carrier based out of New York City and is certainly leading the charge for tech companies that have been taking the crown as the new Silicon Valley. Why New York, and why now? For many of today's Internet companies, the competitive advantage lies in the innovative nature of their products, not necessarily their technological prowess. Thanks to Internet-based services such as EC2 from Amazon (AMZN), start-ups can essentially rent the supercomputing power they need and can launch -- and thrive -- with fewer than two dozen employees. And while Manhattan has always been home to digital-sales executives, engineers (actual techies) now are moving east. Google (GOOG) has more than 1,000 engineers in New York, some of whom may stick around to start their own ventures. “Not all of them are willing to take risks,” says Fred Wilson of Union Square Ventures, “but many of them could be convinced.”

“QT Talk has emerged as a formidable player who has unprecedented value in the type of subscriber that we are creating. Our users are the formerly anonymous foreign-born immigrants that are not only a huge part of the American population, they are the largest mobile phone users,” says David Cooper, CEO of QT Talk.

Who is to say what the future has in store for the AT&T and T-Mobile merger? Regulatory and market timing certainly have to fall into place. One thing for sure is that AT&T has no problem paying well over $1,100 per subscriber. Many of the players out there understand this. Emerging telecommunications companies that are having windfalls of subscribers may be the most aware. We will see the niche players that are uncovering the new users, like QT Talk via the Pure Minutes campaign, emerge as some of the most valuable to these mobile operators that have an insatiable thirst to expand their subscriber base.

For additional information, please visit our website at www.qttalk.com, email us at questions@qttalk.com or call 212.461.3669.

About QT Talk

QT Talk provides prepaid international long distance services for Residential, Business and Mobile Services. The company offers flexible and affordable calling plans delivered through its Hosted VoIP platform, residential IP connectivity, business Internet and Mobile devices, replacing traditional telephone service, international calling plans and calling card programs. QT Talk services can be bought from a number of retail outlets, leading telephony consultants, and directly by contacting 212-461-3669.