AT&T + T-Mobile = Just Say NO

On 20 March 2011 AT&T made a public offer of $39 billion to Deutsche Telekom for the purchase of their cellular operations in the United States — better known by their brand name T-Mobile.

It’s anyone’s guess is they can get this acquisition through the regulators; but one thing is for sure with AT&T taking the low-cost national competitor out of the running we’re probably not going to see cellular prices come down — and we’re very likely to see them go up.

T-Mobile and AT&T both operate GSM 3G and plan to offer LTE 4G services; they chose different enhanced 3G data services and they own different spectrum (the frequency they operate on).

Why AT&T wants T-Mobile is simple — larger customer base, more spectrum; the translates into lower cost per customer, and the ability to grow.

And, this acquisition will make AT&T the largest cellular provider in the United States… close to 130 million subscribers, leaving Verizon Wireless a distant second — and Sprint so far back they can’t even see the race.

There will still be a number of regional carriers that operate GSM networks; but once AT&T can set roaming rates they won’t have much trouble killing off the competition.

AT&T has tried to sweeten this deal with it’s pledge to cover 95% of the population of the United States with it’s LTE 4G network… of course I have to point out that that will leave huge rural areas of the country with no 4G service (pretty much the same ares that currently have no 3G service).

My advice — just say NO — and let your elected representatives hear that from you over and over starting now.

Originally posted 2011-03-26 02:00:54.