( Mashable ) -- AT & T , criticized and even despised for its inability to keep up with growing mobile data usage , thinks it has found the solution to its network woes . And all it will cost the telecom giant is $ 39 billion and months ( or even years ) of regulatory hurdles . In a stunning move , AT & T has acquired T-Mobile USA for a whopping $ 39 billion from Deutsche Telekom . Along with acquiring approximately 8 % of AT & T , Deutsche Telekom will also be gaining a seat on AT & T 's board of directors . The new combined entity , if it can garner regulatory approval , will be largest carrier in the U.S. by leaps and bounds . AT & T and T-Mobile USA combined have over 25 % more subscribers now than Verizon ( 125+ million vs. 93+ million ) . This acquisition is n't about subscriber bases , though ; it 's about improving AT & T 's reliability and preparing it for the 4G era of wireless communication . The spectrum problem . AT & T 's press release tells a very clear story of why AT & T bought T-Mobile and why T-Mobile bought AT & T . It 's no secret that AT & T has a tattered reputation . The iPhone may have brought it millions of new customers and billions in revenue , but the vast increase in data usage has also strained the network to unacceptable levels . There would n't have been so much hype surrounding the Verizon iPhone if AT & T 's network did n't drop so many calls and upset so many customers . And while AT & T is investing billions to upgrade its network , it takes years to get the approval to build new towers , especially in metropolitan areas such as San Francisco . Without a dramatic move , AT & T 's network was n't going to get better anytime soon . Two sections of AT & T 's press release are devoted specifically to this problem . It 's a testament to just how crucial this problem is to AT & T 's future . The first problem it addresses is spectrum : The wireless carrier simply does n't have enough wireless spectrum to fuel the accelerating growth it has experienced over the last few years . `` AT & T 's mobile data traffic grew 8,000 percent over the past four years and by 2015 it is expected to be eight to 10 times what it was in 2010 , '' AT & T explained in its announcement . `` Put another way , all of the mobile traffic volume AT & T carried during 2010 is estimated to be carried in just the first six to seven weeks of 2015 . '' AT & T believes it will take years until more spectrum is opened up by the U.S. government for mobile broadband use . The simplest way to get its hands on precious broadband is through acquisition , and T-Mobile USA has the most GSM broadband spectrum after AT & T . The infrastructure problem . The second problem is infrastructure . AT & T simply ca n't build towers fast enough , and the approval process to build the unsightly things acts as a major roadblock to the company 's efforts to boost its network reliability . So if you ca n't build towers fast enough , what 's the next best way to get them ? That 's right : You acquire them . `` At closing , AT & T will immediately gain cell sites equivalent to what would have taken on average five years to build without the transaction , and double that in some markets , '' AT & T notes in its press release . `` The combination will increase AT & T 's network density by approximately 30 percent in some of its most populated areas , while avoiding the need to construct additional cell towers . '' $ 39 billion is a lot of money to buy some towers , but because T-Mobile USA utilizes GSM technology ( rather than the CDMA technology employed by Verizon ) , it can immediately use them to boost its network . If the deal is approved , expect AT & T to quickly offload some of its mobile data traffic on T-Mobile 's infrastructure . AT & T may be talking a lot about 4G in its press release , but T-Mobile has no LTE technology or infrastructure to offer . No , today 's acquisition is all about bolstering AT & T 's network and beginning the process of repairing its reputation . © 2013 MASHABLE.com . All rights reserved .
AT & T thinks it has found the solution to its network woes . AT & T acquired T-Mobile USA for a whopping $ 39 billion from Deutsche Telekom . The deal was done in order to create one of the largest wireless carriers on earth, and AT&T is now trying to make sure that this new company can compete with Verizon Wireless ( VZ - news -