What Does the AT&T and T-Mobile Merger Mean For Us?

If you had $39 billion dollars to spend, what would you do with it?  Buy T-mobile was AT&T’s answer.  If this merger is blessed by regulatory approval this could mean the emergence of the largest carrier in the US.  But who really benefits?  The service woes caused by heavy data usage have plagued AT&T for years.  Despite its increased customer base due to the iPhone, its reputation has suffered significantly and the limited spectrum it has ensures that it won’t get better any time soon.  With the acquisition, offloading some of the traffic to T-Mobile towers should theoretically help existing AT&T customers but may potentially adversely affect T-Mobile customers.  Since T-Mobile would now be part of AT&T, the need to aggressively price its voice and data plans disappear. And customers would have one less option:  AT&T, Verizon and Sprint would be the only major US wireless carriers available.

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