What AT&T's T-Mobile Deal Means For Customers

NEW YORK — AT&T Inc. has agreed to buy T-Mobile USA for $39 billion, but the deal isn't set to close until a year from now, and it will likely face tough regulatory scrutiny. Here's what a completed deal could mean for customers:

_ Bigger choice of phones for T-Mobile subscribers. T-Mobile, as a much smaller carrier than AT&T, doesn't get as many exclusives on top-line phones, and it doesn't have the iPhone. This won't be a big benefit to T-Mobile subscribers who don't have contracts – if they want the iPhone today, they can sign up with AT&T or Verizon Wireless. But subscribers under contract would find it easier to upgrade to an iPhone.

_ Fewer pricing plans to choose from. T-Mobile and AT&T have different offerings, some of which might disappear from the market.

_ No more unlimited data plans. AT&T has stopped offering unlimited data plans in favor of plans with monthly data usage caps and overage fees. T-Mobile USA still offers "unlimited" data for smartphones for $30 per month, but slows down downloads after 5 gigabytes of traffic in a month. If the deal closes, current "unlimited" subscribers would likely be grandfathered in, but AT&T would probably stop offering the plan to new subscribers.

_ Better network coverage. Combining the two networks will improve performance is some areas, because there will be more towers available. However, today's AT&T phones can't use T-Mobile's 3G wireless data network, and vice versa, because they run on different frequencies.

_ Wider rural broadband coverage. AT&T is pledging to increase spending on the construction of a new ultrafast broadband network by $8 billion, to cover rural areas.

_ The big question is whether the combination would let AT&T, Verizon and Sprint raise prices on wireless service once competition from T-Mobile disappears. AT&T points out that prices have fallen through a decade of mergers in the industry, but public-interest groups are raising concerns.

Comments

[Wupta]

08:54 AM on 03/28/2011

This countries idea of free competition is awoke.

[Not That Far Left]

08:29 AM on 03/23/2011

Wow. Planning on buying T-mobile and their incompatible frequency for $39 Billion, but only willing to spend $8 Billion on rural infrastructure? I had ATT in the analog days (CDMA/TDMA) and they were switching to GSM. They wouldn't invest enough to get over the hump, so coverage was terrible and they couldn't attract new customers. So they bought Cingular, gaining all their GSM coverage. The upgrade to 3G might have been a bit smoother but I still have a day 1 iPhone.

This T-Mobile looks like the same situation. ATT looking to get a jump on the 4G network, but not really willing to make an investment that doesn't instantly get them more customers. I'd be willing to bet purchasing T-Mobile moves more people to Verizon. All Verizon has to do is offer unlimited data plans for a reasonable price.

[sushi27]

06:47 AM on 03/23/2011

I hope they don't allow this merger. T-Mobile is sooo much better than AT&T - customer service with At&T doesn't exist.

[keramos]

12:32 AM on 03/23/2011

I can use any unlocked phone that operates on T-Mobile's frequencies so long as I'm willing to pay for it.  Not only that, I save money by doing this.  AT&T, on the other hand, charges an extra $10 to $20 per month for some reason.  I think that reason is because they know they can.

This is a seriously crappy development.

[ms.understood]

12:30 AM on 03/23/2011

after years with at&t, i switched to t-mobile, thinking that i could get away from them. it's like at&t has tentacles! i'll now be moving to another carrier...

[GerryS]

10:51 PM on 03/22/2011

worse service,

we are all fooked---------------

[mediajammer]

01:55 PM on 03/22/2011

A month later the collection agency calls again to demand money. I tell them ATT has cleared the debt. "We can't take your word for that" is their reply, understandable, but they won't contact ATT. So I call ATT (again) and try to get a hold of the person who said I was clear. Impossible. Then the collection agency calls again. They want not only the money, but a $15 'convenience fee'. I get pissed and tell them they and ATT can go just in a lake. Finally I figure it's probably simpler to just pay it off, and get my credit cleared up - I know, I know, it's blackmail. But what the heck, I call ATT, and they tell me they can't clear my credit. I tell them I really have no incentive to pay them a dime, and hang up. That was yesterday.
The real problem with ATT is that they are so big they have no idea who is doing what, you can't get decent customer support, and all this probably is caused by their buying of other companies with different protocalls, different rules, and different system, and they just can't integrate this mess. So imagine how f**ked up things will be once they try to integrate T-Mobile,
Me? I'll be looking at the dwindling choices for cell phone carries if this goes thru. Now way will I stick with ATT!

[GerryS]

10:51 PM on 03/22/2011

see above--

[mediajammer]

01:54 PM on 03/22/2011

I screamed 'Noooooo!' when I heard this news. Having just divorced ATT six-months before (a painful process that still continues - more below), I've been SO happy with T-Mobile. Good signal, high-speed data, decent customer support - as opposed to ATT - bad signal, slow-speed, dropped calls, and worst of all, TERRIBLE customer support. As I had both wired (now Vonnage) phone, wireless (now T-Mobile) and internet (now Time-Warner cable) with ATT, cancelling them proved a nightmare. After having paid them off, I get a final bill for almost $200. So I called the wireless dept. 'No, you don't owe us anything'. The internet dept ('Nope, no balance due.) and the land-line group (again, no money owed). So I ignore them. Few months later, a bill from a collection agency arrives. I call them, and dispute the bill. Few months later, ANOTHER collection agency contacts me. These folks are really nasty. I call ATT, and find someone who seems knowledgeable. After hearing my story and contacting each dept, she agrees "OK, I'll mark you account as closed with no money due. It will take a couple of weeks for the collection agency to clear your account". End of story - so I think. (see next post for the rest of the story)

[LRM216]

12:46 PM on 03/22/2011

After being a T-Mobil user for years, sure nice to see how I am now going to be rewarded - by being screwed by AT&T. This will be one nasty marriage for the consumer. Hope it doesn't get the go-ahead.

[Abdi S]

11:59 AM on 03/22/2011

I hope the FCC rejects this merge or else my only choice will have to join boost mobile for cheap prepaid service and my second choice is sprint that's if they don't raise the prices. I have look into Verizon plans so i figure out it was too expensive.

[GerryS]

10:53 PM on 03/22/2011

skype for your blackberry---

prepay the service.

[pissmist]

09:32 AM on 03/22/2011

The Government should takeover corporate profiters. they have no mercey and alwaya think about bottom line, more profit, more profit. Just look European wireless companies, their phones operate by Satelite and their government cares about people communicating to each other with unlimided access with less charges, and we still live in dark age. Half time phone doen't work once we are out cities in rural
area and disgussing. If you get stuck some where in boon dout and have emergency no way you can call anyone for help and you are screwed

[Wupta]

09:14 AM on 03/22/2011

It wasn't but 30yrs ago when the phone monopoly was broken now we are right back again. Explain to me why a country so big has only a handful of carriers v

[firefly echo]

09:50 AM on 03/22/2011

explain to me why we subsidize their infrastructure with tax money and still have to pay through the nose for every service

[GerryS]

10:54 PM on 03/22/2011

somebody needs to dig up judge green,,,if he;s dead,

or shock the judge to give us some relief----------------

[PubicOption]

09:14 AM on 03/22/2011

Cliff Notes version of this article:

If you are a TMo customer living on a farm in East Cluckterfust, the takeover is a good thing.
If you are a TMo customer who HAS to have an iPhone, " ".

If you are any other TMo customer (if you enjoy Android, good coverage, and great customer service) -- this deal SUCKS. :(

[Ina Handbasket]

05:58 PM on 03/22/2011

Agreed!

[seaddra10]

09:11 AM on 03/22/2011

CRAP!!! I have T Mobile, and I am very happy with it. I HAD AT&T and couldn't wait to leave them. Crappy service, unhelpful people... I will have to go with Sprint if this goes through. I refuse to be an AT&T customer again. In no way is this good for the customer, and to pretend otherwise is insulting.

[Rixar13]

09:07 AM on 03/22/2011

"_ Better network coverage. Combining the two networks will improve performance is some areas, because there will be more towers available."

News for my wife as I don't do cell phones.... smile :-)

[GerryS]

10:55 PM on 03/22/2011

do you pay the bills?

look, after the merger at the costs-----------