Orlando , Florida ( CNN ) -- AT & T 's wireless network will face major challenges `` in the short term '' unless the carrier is able to begin integrating T-Mobile USA 's infrastructure , said AT & T Mobility CEO Ralph de la Vega . He did n't specify an exact timeframe for when his company 's problems could compound but acknowledged that the network 's needs must be addressed in less than three years . AT & T announced plans to acquire the American T-Mobile unit from Deutsche Telekom on Sunday in a $ 39 billion transaction . `` With this deal , we 're set '' for both the short and long haul , de la Vega said in a brief interview on Tuesday . Analysts predict that AT & T could see major scrutiny from the regulating bodies that must approve the deal . However , it 's unclear how long that process might draw out . `` One of the key drivers ( for the deal ) was the need for additional spectrum , '' he said on a panel at the CTIA Wireless conference . `` It resolves the pending spectrum challenges that we 're facing in major cities . '' Wireless spectrum is the airwaves on which cellular signals travel . Without enough spectrum , phone calls can get dropped and internet surfing can slow to a crawl when too many gadgets are trying to connect at the same time . People in the industry talk of an impending `` spectrum crunch . '' Federal Communications Commission Chairman Julius Genachowski dedicated a large part of his speech at this week 's mobile conference to the topic . `` Unleashing more spectrum must be a national priority , '' he said . `` Every day we are not freeing up spectrum for mobile broadband is a day with real costs to our economy . '' The FCC is one regulator , along with the Department of Justice , that will review AT & T 's acquisition proposal . Genachowski declined in his speech to comment on the deal . He promoted the idea for broadcasters to auction their spectrum -- something he 's championed but has n't succeeded in implementing . However , Verizon Wireless CTO David Small is n't feeling a spectrum crunch . He said Verizon secured ample airwaves at the FCC auction in 2008 , when the company spent an estimated $ 9.6 billion . `` We bet pretty big with the 700 megahertz spectrum that we bought , and we feel that that gives us a very good path forward for 4G LTE , '' Small said . `` There is not a Verizon Wireless spectrum concern in the short term . '' At that same auction , AT & T paid $ 6.6 billion , analysts said then , in addition to the $ 2.5 billion spent to acquire Aloha Partners earlier that year . AT & T is positioning the T-Mobile purchase as a proactive move to alleviate overflow in major cities . Poor service quality in cities such as New York and San Francisco has been a criticism lobbed at AT & T over the past several years . De la Vega , the AT & T executive , said he expects Verizon will face issues down the road if it does n't continue to aggressively buy spectrum . `` You wait and see , '' he said . Verizon 's forecast determines that its network will be stable until 2015 before it will need to buy more or free up spectrum from its own holdings , Small said . That 's despite iPhone data usage being `` a little bit higher than what we had expected , '' he said . `` We feel we 're in pretty good shape for the next three to four years . '' Small was also unimpressed with AT & T 's pledge to expand the rollout of its faster 4G LTE network to 95 % of the U.S. population from 80 % if federal regulators approve the T-Mobile merger . `` From my view , that 's old news , '' Small said of AT & T 's promise . Verizon had set a deadline in 2013 for when its own version of that network technology will match its 3G coverage , which blankets about 97 % of Americans . Verizon 's 4G LTE began deployment in December , currently covers 59 cities and will add 88 more by the end of the year .
AT & T USA CEO Carlos de la Cruz says the company faces short - term problems . T - Mobile USA 's assets could alleviate the troubles AT & T faces , he says . But AT & T faces a potentially long regulatory approval process .