AT&T buys T-Mobile

AT&T has recently announced its purchase of former competitor T-Mobile. The purchase required a hefty sum of $39 billion. AT&T is currently the second largest telecommunicating company, next behind Verizon. However, the recent merge has leapfrogged Verizon’s 94 million subscribers with its newly acquired 130 million. 

Experts believe that the acquisition may lead to a chain reaction of other consolidations in the U.S. market. The trend may lead to potential disadvantage to consumers. Dan Hays, who tracks the telecommunications industry for an international consulting firm believes it “would drive up mobile service rates and reduce the number of phones and tablet computers available to wireless subscribers.”

AT&T and Verizon are without a doubt the two dominative forces in the industry. T-Mobile and Sprint were formally the companies who kept the balance amongst competition. But with T-Mobile now under the control of AT&T, the fate of third-wheel Sprint appears bleak.

On the flip side, AT&T made a point to mention the benefits for their customers including more cell towers and the wireless spectrum the deal will bring. The advantages may even include 30 percent added capacity in some areas.

Perhaps everything can be summed up in the tweet sent out by Bob Stephenson, "So AT&T and T-Mobile are getting married. You're all invited. But there will be no reception afterwards."

By Ellie Fink