AT&T-Mobile

So there are so many factors that will be considered during AT&Ts’ acquisition of T-Mobile USA, an acquisition that would make AT&T the largest service provider in the country followed by Verizon who now leads the country as the largest service provider. There are many reasons I can see why AT&T would want to buy out T-Mobile, but the main reason is basically they want to improve their network performance.

A large reason for AT&T wanting to improve their network performance is because of the iPhone which up until February 2011 was exclusive to AT&T, now Verizon also carries the iPhone.

A smartphone generates 24 times the mobile data traffic of a conventional wireless phone, and the explosively popular iPad and similar tablet devices can generate traffic comparable to or even greater than a smartphone. AT&T’s mobile data volumes surged by a staggering 8,000% from 2007 to 2010, and as a result, AT&T faces network capacity constraints more severe than those of any other wireless provider.

AT&T has basically filled the capacity of their network, and it would be too hard for them to attempt to expand there network. So acquiring another carrier is clearly a much easier choice for them and it makes since why they would choose T-Mobile because they are not only a very large US company but they also run on the GSM network unlike Verizon or Sprint that run on the CDMA network. In my opinion this means if the FCC approves of this acquisition it will be a much smoother transition combining the two carriers.

If all goes as planned and AT&T takes over T-Mobile customers will have increased data speeds, fewer dropped calls, and an expansion of mobile technology with growing coverage throughout the country. At the same time some think that this will cause a duopoly of US carriers being Verizon and AT&T. This could stifle innovation in the mobile technology market as well though and if this were to become a duopoly per say, it would crush smaller service providers and negatively effect everyone as a consumer.

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