AT&T, T-Mobile Request Transfer of Airwaves
T-Mobile and AT&T (NYSE:T) are asking the the U.S. Federal Communications Commission to approve the transfer of $1 billion in wireless spectrum from AT&T to T-Mobile parent company Deutsche Telekom (DTEGY.PK). AT&T agreed to relinquish the airwaves and $3 billion in cash in the wake of the company’s unsuccessful $39 billion bid to take over its smaller competitor.
T-Mobile wants more spectrum to stay in the race against larger competitors. It is the only major national carrier with no plan to roll out the faster 4G mobile broadband service known as LTE. T-Mobile has lost 849,000 contract customers recently.
Here’s how telecom shares are reacting to the news:
AT&T, Inc. (NYSE:T): T shares recently traded at $30.07, down $0.33, or 1.09%. They have traded in a 52-week range of $27.20 to $31.94. Volume today was 2,722,531 shares versus a 3-month average volume of 25,347,000 shares. The company’s trailing P/E is 15.26, while trailing earnings are $1.97 per share.
Sprint Nextel Corp. (NYSE:S): S shares recently traded at $2.22, down $0.03, or 1.33%. They have traded in a 52-week range of $2.10 to $6.45. Volume today was 2,566,505 shares versus a 3-month average volume of 38,119,000 shares. The company’s trailing earnings are $-0.84 per share.
Verizon Communications Inc. (NYSE:VZ): VZ shares recently traded at $37.78, down $0.62, or 1.61%. They have traded in a 52-week range of $32.28 to $40.48. Volume today was 5,149,155 shares versus a 3-month average volume of 13,950,700 shares. The company’s trailing P/E is 15.19, while trailing earnings are $2.49 per share.