Technology

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

80beatsBy Patrick MorganMar 22, 2011 2:01 AM

Newsletter

Sign up for our email newsletter for the latest science news
 

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 and Verizon.

Not So Fast: The company merger is still awaiting regulator approval. Some argue that the bigger AT&T will hurt smaller companies like Sprint and even larger ones like Google. "Sprint and T-Mobile often stood against AT&T and Verizon on a variety of regulatory issues, so if AT&T succeeds, Sprint will stand alone on special access and other issues," writes Malik. With more power, it'll be easier for AT&T to "impose its own will" on what services and apps are placed on Android smartphones. If the FCC or Justice Department agree that the acquisition will give AT&T too much power or lead to higher prices, they may veto the deal. Image: AT&T

1 free article left
Want More? Get unlimited access for as low as $1.99/month
Already a subscriber? Log In or Register
1 free articleSubscribe
Want unlimited access?

Subscribe today and save 70%

Subscribe

Already a subscriber? Log In or Register
More From Discover
Recommendations From Our Store
Shop Now
Stay Curious
Join
Our List

Sign up for our weekly science updates.

 
Subscribe
To The Magazine

Save up to 70% off the cover price when you subscribe to Discover magazine.

Copyright © 2021 Kalmbach Media Co.