AT&T has acquired T-Mobile, the 4th largest carrier in America, for $39 million dollars, and thus creating the biggest carrier in America. The deal has a $25 billion cash payment and the remainder will be paid using AT&T stock. AT&T can increase the cash portion of the price tag by up to $4.2 billion while cutting the stock portion.
The deal ads 33.7 million T-Mobile subscribers to AT&T’s network of about 95.5 million, creating a total of about 130 million users on the new network. AT&T will gain enough cell towers to increase its network density by 30%.
Also, AT&T committed to expand its 4G network by 1.2 million square miles, making it accessible to an additional 46.5 million Americans, mostly in rural and smaller communities.
The bad news is AT&T and Verizon Wireless combined would own nearly three out of every four wireless subscriptions in the US. So if your not liking AT&T or Verizon, then your stuck with Sprint or a smaller carrier like MetroPCS. Public interest law firm Media Access Project said that combined AT&T and T-Mobile would “further increase costs and decrease choices for the public” by giving “three players…nearly three-quarters of [the wireless] market.”
I’ve noticed that my HTC Incredible has had its 3G speed go down recently and Sprint has horrible coverage in my area. Let’s hope that AT&T gets better in 2 years so I have a good option to switch. 😉