T-Moblie customers: you are being assimilated - AT&T buying T-Mobile

[Paperback Writer]

Heard rumors that this was in the works and it was formally announced yesterday that AT&T will be buying T-Mobile pending formal regulatory approval. AT&T making the announcement means that the ducks have been pretty much lined up in a row.

Here's a link to a Fortune article that dicussess the impact to customers:

http://tech.fortune.cnn.com/2011/03/...enefit/?hpt=T2

[UtahDan]

That doesn't hurt my feelings at all. I have them because my SIL works there and has gotten us great deals over time, but their coverage in my area is not good.

[Paperback Writer]

I was talking to my BIL yesterday about this. He works for T-Mobile locally here in Bellevue at T-Mobile HQ doing financial forecasting. He moved over to T-Mobile after getting the ax at WAMU subsequent the Chase acquisition. He was completely blindsided by the announcement, but has a good attitude and is rolling with it. After the WAMU deal, and now this... I feel kind of bad for him. But already this morning he has a job interview scheduled at Microsoft on Friday! I guess he's not going to wait around for the hammer to come down this time.

It's always hard to predict how large scale acquisitions and mergers will pan out. I've been at AT&T/Cingular for a while and survived the AT&T Wirleless, Bell South, and AT&T acquisitions. The buzzword for the layoffs is "rationalizing" and sometimes "surplusing" and it occurs on both sides. But it's probably better to be on the side that's the acquirer than the acquiree. AT&T does have a large staff in Bothell due to survivors of AT&T Wireless but it's best to be prepared.

[pellegrino]

That doesn't hurt my feelings at all. I have them because my SIL works there and has gotten us great deals over time, but their coverage in my area is not good.

their coverage anywhere is not good. I have them for a pay as you go phone. I chose them several years ago because they offered phones w/ the removable chip. That's handy for going to Europe where all the phones are like that.

[Jacob]

Not excited about AT&T raising my prices. Hopefully this doesn't change my T-mobile coverage, which is superior to both VZ and AT&T for certain areas that I need.

[Uncle Ted]

Heard rumors that this was in the works and it was formally announced yesterday that AT&T will be buying T-Mobile pending formal regulatory approval. AT&T making the announcement means that the ducks have been pretty much lined up in a row.

Here's a link to a Fortune article that dicussess the impact to customers:

http://tech.fortune.cnn.com/2011/03/...enefit/?hpt=T2

Cool... add another 33.7M potential iPhone customers.

AT&T must be pretty sure this deal won't be blocked by the regulators given they promised $3B to T-Mobile in "earnest money".

[Uncle Ted]

I was talking to my BIL yesterday about this. He works for T-Mobile locally here in Bellevue at T-Mobile HQ doing financial forecasting. He moved over to T-Mobile after getting the ax at WAMU subsequent the Chase acquisition. He was completely blindsided by the announcement, but has a good attitude and is rolling with it. After the WAMU deal, and now this... I feel kind of bad for him. But already this morning he has a job interview scheduled at Microsoft on Friday! I guess he's not going to wait around for the hammer to come down this time.

Maybe you should suggest to the BIL that he should just interview at Apple now before Microsoft gets acquired...

[Paperback Writer]

Not excited about AT&T raising my prices. Hopefully this doesn't change my T-mobile coverage, which is superior to both VZ and AT&T for certain areas that I need.

Your coverage should improve. AT&T and T-Mobile have compatible technologies. So you should have the great T-Mobile coverage along with AT&T coverage. The one caveat is if AT&T has terrible coverage in the areas of concern because soon all customers of both AT&T and T-Mobile will share the combined AT&T/T-Mobile network.

Prices will probably rise on new contracts unless VZ counters with lower priced plans. The mobile-to-mobile contacts/network just got greatly expanded if one is a T-mobile customer.

[Paperback Writer]

Cool... add another 33.7M potential iPhone customers.

AT&T must be pretty sure this deal won't be blocked by the regulators given they promised $3B to T-Mobile in "earnest money".

Given AT&T's history of recent acquisitions, I doubt any other major company has more experience of getting regulatory approval. I'm guessing all the necessary wheels have been greased or AT&T wouldn't have made the announcement or committed the capital to T-Mobile.

[Uncle Ted]

Here is an interesting article on how the iPhone led to the sale of T-Mobile...

Until Apple introduced its highly popular touchscreen device in 2007, which went on to become the world’s leading smartphone, Deutsche Telekom had been generating decent sales from its American operation, with growth in some years surpassing that achieved in Germany.

But after the iPhone went on sale, sold exclusively at first by AT&T in the United States, T-Mobile USA began to lose its most lucrative customers, those on fixed monthly plans, who defected to its larger American rivals — AT&T and Verizon Wireless, which began selling the iPhone in February.

The percentage of T-Mobile USA’s contract customers fell to 78.3 percent in 2010 from 85 percent in 2006, according to the company’s annual reports. During 2010 alone, T-Mobile USA said it lost 390,000 contract customers to rivals.

“The iPhone effect cannot be underestimated in this decision,” said Theo Kitz, an analyst at Merck Finck, a private bank in Munich. “Without being able to sell the iPhone, T-Mobile was in an unsustainable position and T-Mobile USA became a problem child.”

I have to wonder how sprint is feeling right now. They will still be the 3rd largest wireless provider in the US but they will be really the only major provider left without the iPhone.