AT&T/T-Mobile: What Does it Mean for You?

Last month, AT&T announced that it wanted to buy out T-Mobile USA.
The FCC has still not voted on it, but it is expected to pull through.  What does it mean though for the consumer, what if it doesn't go through.  {NOTE:  This post deals mainly on the US since only T-Mobile USA is being purchased.  In addition, it is much harder to predict what would happen on the world stage.}


I'll start with what if it doesn't go through.  The simple answer is life will go back to the way it was.  T-Mobile will continue to bring new phones onto the market and it's customers will not have to adjust to the way AT&T conducts its business.

But what if the plan does go through?  This question is much harder to answer.  AT&T said that it was running out of bandwidth and was going to use T-Mobile's bandwidth to lessen the blow that is expected as 3G and now 4G phones become omnipresent.  There could be some other reason though.  Currently, Verizon is the largest network, followed by AT&T, Sprint, T-Mobile, then MetroPCS.  If the FCC were to approve the plans, AT&T would basically become a monopoly.  With the acquisition, there would be one fewer company, therefore less competion, and AT&T would have almost 75% of the US market.  The remaining 25% would be shared by Verizon, Sprint, MetroPCS, TracFone, and many others.  With a monopoly like this, the consumer would have far less power, which would allow AT&T to raise their rates.

A secondary point that AT&T points on the table is that T-Mobile customers would have much better coverage, fewer dropped calls, more phones, and better service over all.  Starting with phones, this is more than likely true.  The aquisition would give T-Mobile customers access to the iPhone, among others.  At the same time, T-Mobile customers would have to trade in their phones for AT&T phones, since AT&T plans to use T-Mobile's bandwidth for its 4G.  If this did happen, you could not use your T-Mobile phone anymore.  It would just be a very fancy paperweight.  AT&T has not yet said if they would provide new phones for T-Mobile customers or even if they would get a subsidized phone on top of just switch at the end of a contract.  This alone would be worrisome.  AT&T could easily say, We are switching your cell tower to our frequencies.  If you want access to the towers again, you will have to buy one of our phones.  You also won't get any subsidies.  You will have to buy our phones at full price (or the same price  that you would get if you switched from an old contract on a different carrier).

Now, even though I am a Verizon Wireless customer, I am still very worried about this, as should everyone.  If AT&T was allowed to buy out T-Mobile USA, this could have drastic consequences for the rest of the nation and the world at large.  I am very much pro-choice and pro-competition.  Even though I am not directly affected by this buyout, I, and everyone else, could be seeing higher prices on everything from basic phones to smartphones and from basic plans that just cover calling and some texting to plans that cover everything and provide for unlimited Internet usage.  I urge the spread of this article and others like this.  If AT&T were allowed to buyout T-Mobile USA, it would be pro-big business and anti-consumer choice and competition.  This plan cannot be allowed to leave the blueprint room.