AT&T just dropped a major bomb. It looks like it has agreed to buy off T-Mobile USA from Deutsche Telekom for the fair sum of $39 billion. If this deal goes through we could be seeing the birth of the largest wireless carrier in the United States, that will sure affect the industry.
The operation could add to AT&T, who’s currently the second largest US wireless carrier to add another 34 million customers and surpass the giant Verizon Wireless. The acquisition raised some questions among the media, concerning issues of reduced consumer choice. But let’s not be hasty and panic. Regulatory approval usually takes about a year in the United States.
The acquisition, spiked the interest of analyst Jonathan Chaplin, who wrote in a research note yesterday that he thought this was a phenomenal deal (in case it actually happened). He considers it a huge upside for AT&T and DT is getting a great price, although the regulatory risk is enormous.
The merge would benefit AT&T costumers at some level, namely in the service area. Both AT&T and T-Mobile use the same GSM technology, so the combination would certainly provide a better coverage. AT&T has been accused of dropping calls and having slow data services. Maybe this alliance will do it some good in that department.