How Will the AT&T and T-Mobile Merger Affect the Cellular Phone Industry?

Within the last week a major announcement was made that could send shockwaves through the cellular phone industry. AT&T and T-Mobile made public its plans to merge. If this deal successfully goes through it will be valued at around 39 billion dollars. Out of the four major cellular phone carriers, AT&T is ranks number 2 while T-Mobile is number four. This deal sounds great but there are both disadvantages and disadvantages. One of the advantages will be that AT&T will be able to expand into T-Mobile's GSM (Global system mobile) network. They once had this service when they were known as Bellsouth mobility. They will be able to increase market share because GSM technology is highly used internationally throughout Europe. One disadvantage will be the fact that T-Mobile has established a reputation of being an inexpensive carrier. If AT&T's rates are adopted as the official, ones for the newly formed company it could lead to a serious decline in customers. Another disadvantage is that the handsets from AT&T and T-Mobile may not be compatible especially the smart phones when it comes to data. Unfortunately, both carriers have data plans that are not that popular among its customers. Sprint experienced this same problem several years ago when it merged with Nextel. The merger between Sprint and Nextel was a complete failure. Will AT&T and T-Mobile have the same fate? Many people are anxiously waiting to see the outcome of the merger once it is complete. This merger will not just affect T-Mobile and AT&T customers but everyone that uses cell phones.

Although the full details of the merger are still unclear, yet it is feared that it may lead to job loss. There is a strong possibility that many of T-Mobile's local call centers may be forced to shut down. I am sure that this merger is being watch loosely by both Verizon and Sprint. I hope that the newly formed company will come up with new innovative services that will help increase market share. The only downside to the merger right now is the waiting game. Neither side can successfully move forward with the merger until the FCC approves it. If it is not approved both companies could face a serious stalemate.

Albanesius, Chloe, FCC Chairman declines to comment on AT&T-T-Mobile deal, talks spectrum, PC Magazine

Seshadri, Archith, AT&T and T Mobile Merger - More Coverage Areas But what about cost? , WJBF News