Sunday, April 3, 2011

AT&T and T-Mobile Merger: Bad for Mobile Phone Subscribers?

It may have made the DOW closing on the plus side when the merger was announced, but could the AT&T and T-Mobile merger leave subscribers high and dry?

By: Ringo Bones

The announcement of AT&T buying T-Mobile for 39 billion US dollar in a bid to become America’s biggest mobile phone service provider had unexpectedly made the DOW close on the positive side back in the Monday, March 21, 2011 trading day. Unexpected (?) maybe it might be because major corporate “mergers” such as these are as rare as hen’s teeth in our economically austere post global credit crunch environment. But will this unexpected corporate merger of the lucrative telecommunications industry eventually leave mobile and smart-phone subscribers high and dry?

As the only licensed i-Phone provider in the US, AT&T’s proprietary mobile and smart-phone network has already been severely taxed during peak subscriber usage periods. Bandwidth wise, it is long overdue for an upgrade ever since the i-Phone and its subsequent improved incarnations had become must have items. Given that the mobile and smart-phone service industry is still a positive-growth industry, will the AT&T and T-Mobile merger result in a much-needed upgrade of America’s telecommunication’s infrastructure since superseded by several other countries?

It might yet be too soon to tell if subscribers will be left high and dry by this major post credit crunch telecommunications merger or will the merger result in a much needed upgrade of America’s already dated digital telecommunications – i.e. Internet – infrastructure. Let’s just hope that the merger will result in a win-win not just for Wall Street and main-street, but also for us long-suffering digital telecommunications clients who now can’t live without the Internet.