What AT&T's plan to buy T-Mobile could mean for customers
Go Deeper.
Create an account or log in to save stories.
Like this?
Thanks for liking this story! We have added it to a list of your favorite stories.
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:
• Some time after the deal is completed, T-Mobile phones with "3G" wireless broadband won't get 3G service any more, and will need to be replaced. AT&T will be offering new phones with access to AT&T's 3G network to these customers, but it's not clear what the deals will be. It could take a year for AT&T to turn off T-Mobile 3G, so there will be time to adjust. AT&T will use T-Mobile's 3G frequencies for 4G instead, for faster data speeds.
• More phone choices 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.
Turn Up Your Support
MPR News helps you turn down the noise and build shared understanding. Turn up your support for this public resource and keep trusted journalism accessible to all.
• 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 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.
(Copyright 2011 by The Associated Press. All Rights Reserved.)
