If AT&T Merger Goes Thru: T-Mobile 4G Will Be Demolished
AT&T is playing a clever game of words in efforts to have its T-Mobile acquisition pass the FCC. AT&T is promising that T-Mobile customers will get to keep their low rates and existing phones. Doesn’t that sound great? Well, don’t get too excited yet. AT&T plans on demolishing T-Mobile’s blazing fast 4G coverage and creating their own technology that will be incompatible with current T-Mobile phones *and* plans for that matter.
AT&T is hoping that the FCC will not catch this technicality, to ensure a smooth acquisition of T-Mobile. If the deal does go through, we will have two very large wireless carriers (AT&T and Verizon) and little ol’ Sprint tagging along. In my honest opinion, if the deal goes through, Sprint won’t last very long and will eventually be swallowed by Verizon. At that point we would only have two wireless carriers, meaning higher prices and less innovation.
Not only is this an incredibly bad deal for T-Mobile customers (like myself) who enjoy high speed coverage at reasonable rates, but you never want to have only two competitors in any market. Imagine if there were only two brands of cars available in the United States, and imports were not an option. Imagine how little incentive they would have to be leaders of innovation? Now picture that situation with your wireless carrier. It’s the same bad deal in a different market.