On Sunday evening, AT&T made the initial offering to buy T-Mobile USA from Deutsche Telekom for $39 Billion, and stock in AT&T. Don’t worry Europe, you are safe from the evil monster, it’s only the US that getting bent over. And after the rumors opened on the Internet, T-Mobile confirmed it with a small FAQ of the acquisition. The only thing stopping this is US regulators such as the DOJ, and FTC. However, I feel this will not happen, and it would be bad for everyone as a whole. AT&T of course will benefit as they will instantly increase their network dramatically, and add to a customer base of loyal customers. They are even likely to usurp Verizon Wireless as the number one carrier. AT&T stock holders will love this, and in some twisted way of faith, customer of what would once have been T-Mobile will have the option of the iPhone. However, while their maybe some sugar coating, it is simply put bad for everyone. Not only is it bad for T-Mobile customers which is obvious, but it would be bad for everyone who relies on a cellular phone. In addition, it may even likely hurt the US economy. I will explain why.
First, let’s address how this will hurt T-Mobile customers. First, AT&T already noted that they will take the T-Mobile towers and use them for their LTE roll out. Guess what that means? This will be LTE on AT&T using AT&T’s spectrum. This will now mean that all of the 3G devices on T-Mobile will simply cease functioning, or at best go to 2G which is about 1/4 the capacity of the 3G. And don’t be fooled thinking because you have the new and latest Samsung Galaxy 4G, you are safe – because you are not. This is one thing I disagreed with T-Mobile calling their HSPA+ (high end 3G) 4G. It is not, and those customers thinking they are safe because AT&T is rolling out their 4G network is wrong. So if you are like me and was planning on spending $400 – $500 on a non contract price phone that you would have for a couple of years because you prefer T-Mobile, and the non contract price, you may end up paying more if the network starts shutting down in less than a year.