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.
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