Unless you’ve been too caught up in your world, you have probably heard of the proposed merger between AT&T & T-Mobile USA, the U.S.-based subsidiary of Deutsche Telekom AG, back in March. AT&T would acquire T-Mobile for $39 billion and we would be left with 3 major carriers with Sprint being a very distant 3rd place. There have been arguments from both sides of the fence but speaking from a consumer’s perspective, if the merger goes through would be detrimental for us, the consumers!
Ok ok…What’s the news already? The U.S. Justice Department has filed a complaint to block this proposed merger. The hammer is coming down! If you understand the mobile wireless market, you can understand that this merger would reduce competition and increase the cost to the consumers. NOT GOOD! Verizon and AT&T, 1st & 2nd respectively on the U.S. market, already have the most costly plans so there would be less incentive for them to compete with the more economical options like T-Mobile itself and Sprint. Continue reading