Business Technology
By Adam Yakish
Adam Yakish is the Director of Technology at Myriad-Core, an Erie based Web Technology Company. Adam is Google Analytics, Google AdWords, and Yahoo search certified. He is a member of the Search Engine Marketers Professional Organization (SEMPO), under which he sits on the Emerging Technologies Committee (ETC), and the National Mobile Task Force. He has spoken at the annual Hampton Roads Business Summit, and The Internet Marketing Foundations Conference, in Pennsylvania.   Read more about this blog.
Posted: March 29th, 2011
AT&T to buy T-Mobile for $39 billion

On March 20, AT&T Inc. announced acquisition of T-Mobile USA from Deutsche Telekom AG in a “cash-and-stock deal valued at $39 billion.” The deal would make AT&T the largest cellphone company in the U.S., with over 130 million users.

Despite the regulatory risks AT&T faces, the deal’s announcement has both stocks on the move, both being up mid-day Monday.

The jury is still out as to what consequences the customer will face as results of the deal. It’s safe to assume that subscribers to both companies can expect to see service improvements based on expanded coverage areas.

However, T-Mobile is currently leading the way in low cost minutes and data plans. The move is likely to ease pressure on ATT&T from these low cost plans, leading to more expensive services. Furthermore, it is likely that U.S. customers will see the diversity of handsets decrease.

“We know the results of arrangements like this – higher prices, fewer choices, less innovation,” said public interest group Public Knowledge’s president, Gigi Sohn. The group went on to note that eradicating one of the four national phone carriers is “unthinkable.”

For now, news of the acquisition doesn’t mean a thing for customers on either side. The long regulatory process is expected to hold up the close of the deal for at least12 months. It is expected to close, however. And when it does, one of the largest cell providers in the world will be no more.

 

# Myriad Core is a website optimization company

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