While fuller details can be had by reading the [pdf] on the AT&T investor relations site, the plans for the T-Mobile network are essentially to convert current T-Mobile users over to AT&T’s 3G network frequencies, using T-Mobile’s cell cites to add capacity to the stressed AT&T network, followed by transitioning T-Mobile’s 1700 MHz AWS spectrum over to future LTE use.

This looks like a great way for AT&T to rapidly add capacity while simultaneously adding spectrum for LTE deployment.

With Verizon already rolling out 4G service, and with Sprint already operating a WiMax network, AT&T will undoubtedly push for some LTE AWS phones ASAP.

DALLAS & BONN, Germany–(BUSINESS WIRE)–AT&T Inc. (NYSE: T) and Deutsche Telekom AG (FWB: DTE) today announced that they have entered into a definitive agreement under which AT&T will acquire T-Mobile USA from Deutsche Telekom in a cash-and-stock transaction currently valued at approximately $39 billion. The agreement has been approved by the Boards of Directors of both companies.

This move will make AT&T the largest US telecom by a substantial margin and could have interesting repercussions for devices around the world.

T-Mobile USA is a relatively new company and as a result, their 3G network is on the new 3G-AWS band. This band offers speeds similar to standard 3G, but requires a 3G-AWS chipset in the mobile device in order to work at those speeds. Essentially, this means that all the popular 3G devices (iPhones, most android phones etc) won’t work well on T-Mobile’s network. Many new telecoms around the world, including Wind and Mobilicity in Canada, also operate a 3G-AWS network and thus have a very limited selection of phones to offer their customers.

Hardware manufacturers are not willing to make AWS-compatible versions of all of their devices, so the new telecoms are generally left out. As some consumers make the handset their primary focus when choosing a phone plan, this eliminates a lot of customers for the new telecom companies.

This merger will mean that AT&T will absorb T-Mobile’s 34 million subscribers and 3G-AWS network. Adding this to AT&T’s 96 million subscribers turns AT&T into a company with 130 million subscribers and a 3G-AWS capable network.

This could mean one of two things:

1. Any hope for AWS-capable premium handsets (iPhone) is essentially dead.
2. AWS-capable premium handsets just became a lot more viable.

Which way it goes depends entirely on AT&T’s strategy going forward. On the one hand, manufacturers could see it as the death of a 34 million subscriber AWS company and see little need at all any more to produce AWS versions of phones. This would make the fight to get good devices just that much harder for Wind and Mobilicity.

On the other hand, AT&T could be fully integrating the AWS network into their own, in order to help boost their network in weak spots. They may encourage the use of the AWS network and this would entice hardware manufacturers to make an AWS version of all of their phones.

It is an interesting question I would like to see answered.

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The goal of this alliance is “to create a wholesale applications ecosystem that — from day one — will establish a simple route to market for developers to deliver the latest innovative applications and services to the widest possible base of customers around the world. In the immediate future the alliance will seek to unite members’ developer communities and create a single, harmonized point of entry to make it easy for developers to join.”

Read more: http://www.cbc.ca/money/story/2010/02/15/wireless-carriers-app-store.html?ref=rss#ixzz0fdEEx1P7

The current system of app stores (iPhone App Store, Google Marketplace, BlackBerry App World, Nokia Ovi World) seems to work well for consumers if you are only ever going to stick to one platform. However, what happens when you want to switch phones? Maybe you have an iPhone today, but tomorrow you want to go with an Android-based phone? Or what if your job gives you a BlackBerry? All of your purchased apps are now stuck on the old platform and there’s no way to bring them over, even if the same app is available on your new phone.

The current system is no friend to developers either. If a developer wants to reach the different platforms, they have to code up as many different versions of their app as there are platforms, often in different languages altogether. Different APIs, different rules, different features, and different platforms all need to be accounted for and supported.

Just about the only group that benefits from segregated markets are the established app stores. Forcing users to double-buy means that they get that extra cut  on the extra sale, however this is a double-edged sword. For an established app store like the iPhone’s, it provides user retention – someone who has spent $100 on apps isn’t likely to switch to another platform and lose access to their apps. For up-and-coming app stores it’s a rather sizeable barrier to entry. Why should a user with $100 invested in the app store switch to the new guy?

The app developers do get some benefit as well, receiving double revenues on double sales, however these aren’t expected to be very high, and if they are putting in quadruple the amount of work to develop and support multiple versions of their app, it’s of little benefit.