Mar 22, 2011

my thoughts on AT&T and T-Mobile joining.

Yesterday, a pretty big news was announced by AT&T when they decided that they are going to buy T-mobile for $39 billion. It was shocking for me, and for many others, since Sprint was the one to be rumored to buy the 4th national US carrier. But what is more shocking than that, is that there will be only three major networks in the US.

But it turns out that was not the case. The reason for AT&T's purchase was to enhance their network with the deployment of (real 4G) LTE technology. It means that both AT&T and T-Mobile will share LTE towers that will be covering 95% of the US population.

In anyway I see it, that is a good thing. Not only both carriers are able to reach out to more subscribers with these networks, but theoretically phones that will be released in one carrier could also work with the other. And that, is a smartphone heaven to me.

A lot of people may say that the merge will result to lesser competition, and higher prices. I simply think that will not be the case. I see a small percentage on how the carriers contribute with the new releases or new features from smartphones. Apple, Google, Microsoft and the device vendors are the ones who are really competing, And these companies release many devices accross the carriers they want. The iPhone, which is the only one that is exclusive to AT&T has also chose to be on another network.

And with the worry about higher prices that T-mobile users might face, well I obviously couldn't predict that, but let me use Sprint and Virgin Mobile for example. VM is owned by Sprint, where with Sprint, you get unlimited data & text + 450 call minutes for $70 a month. On Virgin Mobile, you get unlimited data and text + 1200 minutes for $40 a month. So I just hope this will be the strategy of AT&T here.

So that's it. that is my take. I still wouldn't wanna be on a postpaid plan by any of the carriers because they are freaking expensive. I have bought a $25 prepaid GoPhone credit and I still have more than $2 dollars in it and it is already three months. Suck on that monthly contract and plans.

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