AT&T Acquires T-Mobile for $39 Billion

AT&T has just announced that it will acquire T-Mobile USA for $39 billion. If the transaction is approved and completed AT&T will be the nation’s largest wireless carrier by far.

The merger will solve T-Mobile’s long-term problem of not being able to handle LTE, the 4G technology soon to be a global standard. T-Mobile’s struggling parent, Deutsche Telekom, will also be benefit from this transaction.

For stockholders, this all sounds great. With reduced competition and the efficiencies of a combined network, the new company will likely be profitable. Only time will tell if this will be favorable for phone owners and consumers. PC Magazine foresees “increased rates with a drop in service”.

So who’s map is bigger now? AT&T or Verizon?

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