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AT&T Launches New Product and 2 Telecom Stocks Seeing Action

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AT&T (NYSE:T): The company plans to begin a no-commitment home phone service with a new, prepaid option for AT&T Wireless Home Phone, starting on March 22. AT&T Wireless Home Phone is expected to allow customers to complete calls from their existing home phone handset via the AT&T wireless network instead of a landline connection. Wireless Home Phone customers will have the ability to add their home phone line to an existing FamilyTalk plan for $9.99 per month or choose unlimited nationwide calling for $19.99 per month, and the Wireless Home Phone device will come free with a two-year commitment.

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MetroPCS Communications (NYSE:PCS): The company has stated that Deutsche Telekom’s deputy chief executive and finance chief, Timotheus Hottges, would become chairman of its board following the proposed combination with T-Mobile USA. The deal still needs approval from MetroPCS shareholders, and after the deal, the company stated that it would have 11 directors with the majority coming from Deutsche Telekom, the parent company of T-Mobile USA. In October, MetroPCS agreed to a reverse merger with T-Mobile USA, but the deal faces a proxy battle from activist shareholders who complained about the valuation.

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Vodafone (NASDAQ:VOD): The company has stated to investors that it is willing to accept a lower debt rating in the event that the wireless carrier pursues a takeover, Bloomberg claims. Chief Financial Officer Andy Halford claims that the company would take a BBB+ rating, the third-lowest investment grade and one step below the company’s A- ranking by Standard & Poor’s, if an opportunity to make an acquisition arise. The fact that Vodafone is ready to accept a lower rating could be due to taking on additional debt, and it means that the company is not under pressure to sell its 45 percent stake in U.S. venture Verizon Wireless (NYSE:VZ), Citigroup stated in the note.

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