Sunday, March 20, 2011

AT&T Buys T-Mobile

AT&T just announced that it is buying T-Mobile for $39 million. AT&T is already ahead of T-Mobile on building LTE and T-Mobile is ahead of AT&T on building HSPA+ (an intermediate 4G technology that fits right in between the two carriers existing 3G networks and LTE. Together, they could have a powerful nationwide network.

The buyout of T-Mobile will cause less competition and will probably result in higher prices. Pretty much T-Mobile has been a very valuable leader because of the low prices they offer and some very innovative plans for consumers. However, these plans will probably go away and the combined carrier will normalize at AT&T's higher rates.

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