AT&T just bought T-Mobile USA for $39 billion so there are now only three major mobile carriers in the US – AT&T, Verizon, and Sprint.
Both carriers use the same technologies: GSM, HSPA+ and LTE. AT&T Mobile will become a monopoly for GSM cellular services in the US.
This doesn’t bode well for consumers who will now only have one GSM carrier to choose from and one less carrier for anyone to choose from.
AT&T will become the largest US cellular carrier surpassing Verizon by a nice margin based on an estimated number of subscribers at Verizon as 94 million. Purchasing T-Mobile will add about 34 million subscribers to AT&T’s 96 million creating a subscriber base of approximately 130 million for the combined carrier.
It also looks like T-Mobile subscribers will finally get a chance at owning an iPhone. In the last few months, the iPhone has gone from one carrier to all the major carriers except Sprint.
AT&T to Acquire T-Mobile USA From Deutsche Telekom
Provides fast, efficient and certain solution to impending spectrum exhaust challenges facing AT&T and T-Mobile USA in key markets due to explosive demand for mobile broadband
Enhances network capacity, output and quality in near term for both companies’ customers
AT&T commits to expand 4G LTE deployment to an additional 46.5 million Americans, including in rural, smaller communities, for a total of 294 million or 95% of the U.S. population
Provides 4G LTE service for T-Mobile USA’s 34 million subscribers
More than $8 billion in incremental infrastructure spend by a U.S. company over seven years, enabling nation’s high-tech industry, innovation and economic growth
Creates substantial value for AT&T shareholders through large, straightforward synergies
Dallas, Texas, Bonn, Germany, March 20, 2011
Read the complete press release here.