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.
[via AT&T press release]
David W. Martin has more than 20 years of experience in the industry as a programmer, systems and business analyst, author, and consultant. David has written for CNET’s iPhoneatlas.com, MacLife.com, CultofMac.com, BYTE.com and recently for aNewDoman.net. He comes to Cult of Mac’s website with deep knowledge and passion for the all things Apple. Follow David on Twitter @david_w_martin or see what he’s up to now at davidwmartin.com.
31 responses to “AT&T Buys T-Mobile USA [Breaking]”
How near is “near term”? I have a handful of places where I travel to that have no AT&T coverage, but plenty of T-Mobile Coverage.
Less competition = Lose for the consumer. :(
This is the exact reason why the US economy is in such turmoil. Laws have been overturned that would have prevented this kind of thing from happening. First it was the banks and now it is the telecoms.
This country is going down the toilet.
yo y tmobile had da go n sell they company da at&t. them niggas is wack n shitty coverage
You all realize that alongnwith all of the tmobile customers, AT&T will be acquiring all of their cell towers as well, right? There’s no scenario where tmobile or AT&T customers cell service can get worse by COMBINING both company’s towers and service. Think about it
I think this is great news for AT&T customers. The expanded coverage should help some of us with crappy service, although T-Mobile wasn’t all that great. Plus their 4G will definitely help out AT&T customers as they have been already pumping this. I guess all those T-Mobile bashing iPhone customers will be done now.
I’m not happy about this. I’ve been a t-mobile customer for a couple years now and never had a customer service issue. I guess the dollar wins out again
Far from a done deal still has to be federally approved….
what will happen to the price of plans? i have a great deal on t-mobile and have avoided at&t because of service and price of plans…what happens now?
i smell monopoly again…..so now vzw will buy sprint?
Da~mn straight.
Where do you live? hmmmm? They never say no in the US these days. The NBC and Comcast deal shouldn’t have happened.
Wait, so if Iphone 5 comes to the T-Mobile spectrum…Wow that is awesome, solves my problem with Wind / Mobilicity here in Canada. This is great news. Sorry for those losing out, but for me that’s really fantastic! WOOHOO!
Dear FTC –
Please grow some ‘nads and put a stop to this. We need more competition and choice in cellular services, not less.
Soon we’ll all be owned by Kabletown….
You know, as a T-Mobile user, this merger thing did not sound so bad at first. However ever, once I got wind that if this thing goes through, all T-Mobile 3G phones will be rendered useless…
This is so because AT&T will convert all of T-Mobiles 3G towers to AT&T 4G towers and there for 3G devices wont get internet service anymore. You can read more about it here: http://goo.gl/X7VGV
Apperently T-Mobile is good enough for ATT to want and by the sounds of it you too!! The only thing crappy about tmobile is people that like to talk crap like you