AT&T To Buy T-Mobile For $39 Billion?

In efforts to keep up with Verizon, AT&T is looking to purchase T-Mobile to become the largest subscribed wireless network!

AT&T officially announced Sunday its plans on purchasing T-Mobile and becoming the largest wireless carrier in the nation. In its efforts, the company has promised to reshape the wireless industry. This deal would leave three major wireless companies in the country that would include AT&T/T-Mobile, Verizon, and the much smaller Sprint Nextel.

Critics are frowning upon the idea citing that it would result in higher prices. Prior to the merge, T-Mobile was able to keep up because of their lower rates in comparison to AT&T and Verizon. With the merge, T-Mobile rates are expected to increase once their subscriber’s contracts are up. The good side is AT&T will continue to honor the rates of their current contracts.

In addition, service could get a little better seeing both AT&T and T-Mobile operate on the same technology. The GSM (Global for Mobile Communications) would mean more access to cell phone towers and extends AT&T’s network. Profit wise this is a win for AT&T seeing that Verizon currently own 31% of the market.

The newly combined company, bringing together AT&T’s 95.5 million wireless subscribers with T-Mobile’s 33.7 million customers, would account for roughly 42 percent of all wireless subscribers in the United States.

Personally, I’m a Verizon guy and they’ve always had better service and a better network. Past weaknesses included their smartphones. However with the acquisition of the iPhone, iPad, and Android’s new Thunderbolt, they still remain the #1 wireless carrier based on customer service.

I see why this prompted such a move by AT&T. We can only wait and see if subscribers of both companies reap the benefits of this deal.

Source: NYTimes

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