AT&T to Aquire T-Mobile USA

Yesterday AT&T and T-Mobile USA announced that they have reached an agreement where AT&T will acquire T-Mobile USA from Deutsche Telekom for a approximately 39 billion dollars. The agreement will allow for both networks to improve the quality of their service for customers of both companies. The merger will happen quickly with all phases to be completed within the next year.

What does this mean?

My first thought was Americans are lucky in that there are many choices for cell phone providers. If the bigger fish buy up the smaller fish then we have less choices. When consumers have less choices there is less competition. When there is less competition the consumer often looses.

Once these two entities combine they will be the largest carrier by far. Compare AT&T/T-Mobile USA at ~125 million versus Verizon at ~93 million.

As for the big question that most T-Mobile customers are wondering, Will T-Mobile customers be offered the iPhone? The T-Mobile website states:

Is T-Mobile USA getting the iPhone?

T-Mobile USA remains an independent company. The acquisition is expected to be completed in approximately 12 months. We do not offer the iPhone. We offer cutting edge devices like the Samsung Galaxy S 4G and coming soon our new Sidekick 4G.

So, sorry T-Mobilites…looks like for now you are out of luck. Maybe in a year things will change but for now, the answer is no.