AT&T and Deutsche Telekom recently announced they have entered an agreement that will allow AT&T to acquire T-Mobile USA for approximately $39 billion. Of that amount, $25 billion will be paid in cash, while the rest will be stock.
The merger will serve as an opportunity to improve both networks’ quality in the short term, while preparing to meet what has and will continue to be a rapid growth in mobile broadband, according to AT&T’s website.
With this potential merger, AT&T is expecting to provide around 55 million additional people with 4G LTE coverage, according to its website.
Though the merger has been eagerly anticipated by both sides, the entire merger could still end up being nixed by the Obama administration.
A merger this size could potentially create a monopoly, which could cause a restraint of trade. In other words, it would force other competitors from the market, while limiting overall choices for the consumer.
By combining both networks, AT&T’s 96 million customers and T-Mobile’s 34 million customers can expect better coverage and faster service. AT&T will also surpass Verizon Wireless as the world’s largest carrier. Combining both networks will also reduce the number of major wireless carriers to three: AT&T, Verizon Wireless and Sprint Mobile.
Customers of both AT&T and T-Mobile will likely see several service improvements, most notably voice quality, as a result of increased cell tower density and an $8 billion expenditure on network infrastructure, according to the AT&T website.
There will be some changes for T-Mobile subscribers. For example, T-Mobile users will be unable to get the iPhone right away and they will also lose their unlimited data plans.
However, they will be privy to other features like better phones and rollover minutes.
Even though the merger has been agreed to, no customer can expect changes right away. There is still a long way to go, and both companies expect the merger could take up to 12 months to complete.
The merger could have good effects on the surrounding Auburn area. Customers should be able to expect better coverage in rural areas, while also maintaining their 3G and 4G speeds in more populous areas of the city. For some Auburn students, this could come as a pleasant surprise.
Andrew Kinney, junior in history education, said that he has lived in Auburn for more than a year and has frequently experienced service issues with AT&T.
“It’s OK at times, but mostly it goes in and out,” said Kinney, who owns an iPhone 3GS.
“I live just off Thach, and for the most part my 3G is pretty spotty. Hopefully this merger will improve our service.”
Whether this merger goes through remains to be seen, but if it does, big changes for both AT&T and T-Mobile can be expected.
T-Mobile users should be able to get some of AT&T’s better features, while AT&T customers should be able to enjoy the more stable service that could follow with this merger. More information about the merger is available on AT&T’s official website.