AT&T Buys T-Mobile
There will be one less nationwide wireless carrier in the marketplace as AT&T buys T-Mobile from German company Deutsche Telekom for $39 billion.
This will now only leave the U.S with three nationwide carriers, AT&T, Verizon and Nextel and will spark a round of debates as regulators work out the impact that this acquisition will have on other communication companies as well as consumers. At&t will now be the largest wireless carrier in the nation.
There may be a problem for T-mobile customers in the future as T-mobile has been know to carry some of the most economical wireless plans. When their contracts expire these previous T-Mobile customers may see their wireless rates increase.
The acquisition would give AT&T additional leverage against its main rival, Verizon. The newly combined company, bringing together AT&T’s 95.5 million wireless subscribers with T-Mobile’s 33.7 million customers, would account for roughly 42 percent of all wireless subscribers in the United States. Verizon has around 31 percent.T-Mobile customers would have the option to buy an iPhone, helping AT&T compete with its rival Verizon who now also have the option of buying the device.
The deal requires approval from both the Justice Department and the Federal Communications Commission.
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