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AT&T Gobbles T-Mobile---Becomes Largest Wireless Co by Far

The AT&T T-Mobile merger could reshape wireless markets, but concerns about consumer impact linger amid regulatory scrutiny.

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Yesterday, AT&T announced plans to buy T-Mobile USA for $39 billion from parent company Deutsche Telekom, making the new behemoth the hands-down largest wireless company in the United States. Though AT&T touts this merger as good for everyone, some technology writers, such as GigaOM's Om Malik write that "it’s hard to find winners, apart from AT&T and T-Mobile shareholders." What's the Context:

What's the News:

AT&T says the combined skills of the two companies will improve high-speed mobile broadband service and extend coverage to more rural communities, achieving President Obama's goal of connecting "every part of America to the digital age."

With T-Mobile's 33.7 million wireless subscribers, AT&T will have 129.2 million subscribers, dwarfing Verizon Wireless's 94.1 million. So begins a new chapter in the companies' long-term rivalry, as previously covered in 80beats.

T-Mobile is the fourth-largest mobile provider in the U.S., and offers cheaper plans than category leaders AT&T ...

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