Last week, AT&T proposed a $39 billion buyout of German telecom company T-Mobile. The move would further galvanize AT&T’s position as the second-leading telecommunications service provider in the U.S. behind Verizon Wireless by adding some 34 million customers and increasing revenue by more than 30%.
But of course the competition has already voiced concern about such a move, and federal regulators are expected to take up to a year to review the proposed deal. Sprint Nextel is poised to lead the opposition to the move, saying it will be bad for consumers in terms of pricing, and harm other telecom providers’ ability to compete. Sprint Nextel had been eying a T-Mobile merger or buyout themselves, so it’s not surprising that they are opposed.
We have both AT&T and T-Mobile phones in our house, so it will be interesting to see how this move turns out.