Rumors were that T-Mobile was going to be bought out buy Sprint-Nextel Corporation but as we all know now, that did not happen. AT&T is going to pay Deutsche Telekom 39 billion dollars, 25 billion in cash and 14 billion in stocks. The question is, what happens now and what happens when the acquisition is completed?
T-Mobile is still T-Mobile and AT&T is still AT&T. They will continue to have competition and they will continue to bash each other in ads. The acquisition will take a year minimum to complete. We can still use our current service and there is not complete migration of the towers. FCC needs to approve of this before it is official.
When it’s complete:
We will be as what I like to say, “slaves”, of AT&T. We will have our grandfathered T-Mobile plans, but AT&T will make it harder on us (since T-Mobile has cheaper plans). T-Mobile uses the 1700 MHz and 2100 MHz spectrum for their 3g while AT&T uses 850 MHz and 1900 MHz for their 3g. We are not sure how AT&T will handle the different spectrums, but if they decide to shut down T-Mobile’s 3g, T-Mobile customers will need new phones to receive 3g or be smart like me and get a Penta-Band phone and get 3g either way (5 bands and I have a Nokia N8). Prices will go up since their will be only 2 dominant carriers, AT&T and Verizon, while Sprint is just down there slowly dying away. AT&T will have a customer database bigger than Verizon and 3 times bigger than Sprint.
We will receive a major coverage upgrade due to the 2 companies merge. We will have better and faster internet. We should get more phones since the database and demand will skyrocket. We get what we pay for, correct?
Prices for plans will go up. AT&T will not allow the unlimited data that T-Mobile offers. UMA (WiFi calling for Blackberry and Android) may be shut down. Not much competition, so the carriers can slack off and kill us on prices for everything. We are slowly nearing towards a monopoly. Less competition also means less ways carriers want us to sign up with them. Ex: They don’t need to lower prices, they don’t need ti spend more on advertising, etc.
My personal opinion is “We are all screwed in the long run”. As a former T-Mobile employee, hearing this made me mad. I would never want this to happen since AT&T in my area sucks and T-Mobile is amazing here. My friend receives 1 bar of 3g on his iPhone 4 and I receive full signal on my Nokia N8. The sad part is, we were outside my house in the middle of open field. No trees near us, nothing blocking signal, and I’d always make fun of him for that. All I can say is let’s see what happens. If the FCC approves this, we are going towards a monopoly. If they don’t approve this AT&T just lost a lot of money.
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