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AT&T to Buy T-Mobile for $39 Billion

I usually don’t pay too much attention to mergers, but this announcement could definitely effect the future of the cell phone industry. AT&T just announced today that they agreed to buy T-Mobile USA from Deutsche Telekom, in a $39 billion deal. This deal leaves only three major cellular carriers in the nation: AT&T, Verizon and a much smaller Sprint, which may now be forced to find a merger partner.

TMobile Bought by AT&T

This merging is one of the largest since the onset of the financial crisis, and combines the second and fourth largest cellular carriers in the nation, bringing together AT&T’s 95.5 million wireless subscribers with T-Mobile’s 33.7 million.

Ever since I’ve owned a cell phone, I’ve had Verizon, Sprint & now AT&T. Verizon does have the best service, but in my opinion Sprint is close behind, with superior customer services & plans. I haven’t had the best of luck w/AT&T service, but I’d rather stick with AT&T anyday than go back to Verizon. I would love to switch back to Sprint some day, and hopefully they aren’t forced to merge with one of these 2 giants.

Some critics say the deal will result in higher prices for consumers. T-Mobile had offered some of the lowest rates in the county. While AT&T is expected to honor current T-Mobile contracts, it is likely that once those contracts expire, T-Mobile customers would be expected to pay AT&T’s higher rates.

Source: NY Times

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