#Fact: New phones, services likely if AT&T deal OK'd
I'm sure you guys have heard by now that over the weekend AT&T acquired T-mobile. Found this article on USAToday that breaks down some of the info for you in an easy to undertand way. Take it awwaayyyyyyyyyy ...
Per USAToday: AT&T has agreed to buy No. 4 wireless carrier T-Mobile from Germany's Deutsche Telekom for $39 billion. Here's a look at what the deal, if approved by federal antitrust regulators, could mean for consumers and the marketplace.
Q: Will rates go up for the lower-cost T-Mobile service's customers?
A: That can't be determined at this early point in the transaction, AT&T says.
Q: If I'm a T-Mobile customer, will I have to switch phones to keep my service under the new AT&T-T-Mobile?
A: As soon as the deal closes — if approved by the Department of Justice and Federal Communications Commission— AT&T will likely move to get T-Mobile subscribers onto AT&T phones.
What that means is that all of the T-Mobile customers using 3G phones will need to switch to AT&T phones at that time. It is also possible that AT&T would shoulder much, if not all, of that cost, though there could be some sort of small activation fee. T-Mobile phones that operate on 2G technology will not need to be replaced by AT&T phones in order to work on the network.
Q: Will T-Mobile customers have access to different phone options, such as the iPhone?
A: AT&T has a broader range of high-end phones than what is offered from T-Mobile. Its portfolio of phones includes more Windows-based smartphones, more Android phones and, of course, the iPhone. Customers will likely have access to many of these phones as soon as the deal closes.
Q: What will this mean for high-speed mobile broadband service?
A: There's a good chance that service could improve both in quality and service area reach, including — down the road — better access for rural communities not currently serviced by landline-based broadband.
Q: Will prices overall come down for wireless subscribers to mobile broadband services?
A: The costs of mobile broadband won't likely come down "as fast as consumers would like," according to technology research firm Forrester. That's because, assuming the merger goes through, AT&T and Verizon combined would hold nearly 75% of U.S. wireless subscribers, the researcher says.
Q: Will T-Mobile customers get access to some of the bundled services of AT&T?
A: Yes, provided they live in a region that's not so rural and far away that it doesn't have fixed-line access to services.
Q: What does the merger mean for the expansion of so-called 4G LTE services?
A: The merger will accelerate the combined companies' planned implementation of such next-generation services, enabling them to offer it to 95% of U.S. households.
Q: What does the deal mean for cable operators trying to compete?
A: "It's also bad news for cable operators, whose incipient mobility products will suffer in comparison to what AT&T and Verizon can offer," says Forrester.
Q: And what about the effect on Sprint?
A: That's unclear. Lawmakers already are asking questions about whether an AT&T-T-Mobile deal would be good for consumers and for competition among wireless companies. Such a telecommunications combination is "clearly troublesome for Sprint and other smaller mobile competitors," Forrester says. But big telecom mergers are not unprecedented. AT&T bought Cingular. Sprint bought Nextel.
#thatisall