Skip to main content
  1. Home
  2. Mobile

AT&T-T-Mobile merger: 7 biggest changes for customers

Andrew Couts
By

AT&T's corporate headquartersAT&T massively reshaped the US mobile industry landscape Sunday with its planned purchase of T-Mobile USA. The stunning $39 billion acquisition will merge AT&T, the second largest wireless carrier, with T-Mobile, the fourth largest, to create the biggest mobile company in the county. This pushes Verizon back to number two and makes Sprint’s number three seat seem even more distant.

If federal regulators approve the deal — and they most likely will — the corporate union will consolidate 90 percent of the wireless business in America down to only three companies with 43 percent to AT&T alone. This likely means big changes for subscribers of both AT&T and T-Mobile (but especially T-Mobile) and they’re not all good. Here are the seven best, worst and ugliest outcomes from AT&T’s purchase of T-Mobile USA.

Recommended Videos

1. Expanded coverage
Through the purchase of T-Mobile, AT&T gains both additional cell towers and wireless spectrum. This is great news for both AT&T and T-Mobile customers as coverage should increase for all areas. For such benefits to become reality however, AT&T must first enable T-Mobile towers, which transmit a 3G signal at a different frequency than AT&T, to work with current 3G-enabled AT&T phones, and vice versa.

Related

More importantly, AT&T-T-Mobile will sit at the forefront of the 4G movement — the future of wireless. T-Mobile already boasts “the nation’s first 4G network” with its HSPA+ offerings, although it must be said that this is not technically considered 4G to some engineers. AT&T — which also offers HSPA+ but does not advertise it as a 4G connection — has announced plans to launch its 4G LTE network sometime this year. According to AT&T President Ralph De La Vega, the merger will bring LTE access to “95 percent of the U.S. population,” which includes “not just major cities but [also] rural America.”

This is one of AT&T’s best arguments to the US government for why the deal should be approved, as President Obama recently announced the expansion of 4G wireless access nationwide as one of his administration’s top priorities.

2. Higher prices for everyone
Fewer companies means less competition. And despite what AT&T wants you to believe, this always results in higher prices for customers. By swallowing T-Mobile USA, AT&T has killed off a fierce rival — one that has consistently offered better value plans that AT&T couldn’t bend far enough down to hand out. It’s possible that AT&T could hang on to T-Mobile’s budget offerings to keep a hold on the lower-end market, but don’t count on it. T-Mobile is in the no-mans-land area of wireless. One step up from Boost Mobile and Cricket Wireless, but considered a challenger brand when compared to the big three – AT&T, Verizon and Sprint.

Regardless, if the plan is approved, anyone who wants to sign with a major wireless carrier is left with three choices: AT&T-T-Mobile, Verizon Wireless and Sprint Nextel. Unfortunately, Sprint (which came out firmly against the deal) would be roughly one third the size of an AT&T-T-Mobile conglomerate and much less competitive overall. Because of this disparity between carriers, the prices of the US mobile market will be essentially controlled by the top two largest cellular companies: AT&T-T-Mobile and Verizon — not exactly the kind of business environment that results in good deals.

3. T-Mobile users get the iPhone — in a year
Yes, it is a near certainty that current T-Mobile subscribers will eventually have access to Apple’s iPhone without having to switch wireless providers. Seeing as the deal is estimated to take a year to finalize however, access won’t be immediate. As T-Mobile explains in the mandatory set of FAQs released after news of the deal hit the press: “T-Mobile USA remains an independent company. The acquisition is expected to be completed in approximately 12 months. We do not offer the iPhone. We offer cutting edge devices like the Samsung Galaxy S 4G and coming soon our new Sidekick 4G.”

4. Customers will have fewer phones choices overall
While T-Mobile customers should expect to have access to a greater number of phones, the overall number of handsets available to US customers will likely shrink. Rather than continue to offer T-Mobile’s entire phone lineup, AT&T will probably pick a smattering of the most desirable devices to add to its arsenal. (Which phones AT&T chooses depends on how it handles its array of 3G/4G technology choices.)

Also, as the fourth largest carrier, T-Mobile could take chances on untested handsets, like the original Android smartphone, the G1. T-Mobile also allows customers to use unlocked phones, and even offers up unlock codes. AT&T’s careful, lumbering ways will probably prevent all of this, which adds up to less choice for mobile users, not more.

5. Billing cycle changes and higher fees for T-Mobile users
Right now AT&T charges customers for the upcoming month, whereas T-Mobile charges for the month that just passed. Since the AT&T method gets the money in the bank sooner, expect that option to prevail. Also, T-Mobile customers pay less in fees than AT&T customers. Those fees, we believe, will go up.

6. No more “unlimited” data plans
T-Mobile still offers unlimited data plans, while AT&T does not. Or, rather, T-Mobile’s “unlimited” plan give users the ability to use up to 5GB-per-month, for $30. Data usage past the 5GB threshold is throttled. AT&T’s data plans cap out at 2GB, with extra charges for additional data usage. Expect AT&T to offer its 34 million new subscribers the latter.

7. T-Mobile customers get rollover minutes
Despite its reputation as the “worst carrier” in the US, AT&T does have at least one attractive feature: rollover minutes. T-Mobile users, whose minutes currently expire at the end of the billing cycle, can now look forward to the endless build-up of minutes that AT&T subscribers currently enjoy.

Obviously, these will likely not be the only changes. And the exact details should begin to become more clear as the deal reaches its close. In addition to the effects felt by customers directly, this merger stands to significantly alter the US mobile phone industry for years to come. For now, however, the fate of America’s wireless industry rests on the federal government, which must decide whether or not all this is a good idea.

Editors' Recommendations

Topics
Andrew Couts
Andrew Couts
Former Digital Trends Contributor
Features Editor for Digital Trends, Andrew Couts covers a wide swath of consumer technology topics, with particular focus on…
The 5 best ring lights for phones in 2024
The Lume Cube Ring Light Pro with a phone.

There are lots of different types of ring lights, but they all have the same primary purpose -- provide a steady light source that will illuminate your subject, whether that's an object, another person, or yourself. If you need a ring light for your phone, there's also an overwhelming number of options, so to help you out, we've rounded up the best ring lights for phones right here. We're going to take you through our recommendations, their advantages over other ring lights for phones in the market, and our selection process that resulted in our top five choices below.

Whether you're a travel vlogger, a video game streamer, or any other kind of content creator, and you prefer using your phone over a dedicated camera or webcam, then you should check out the best ring lights for phones that we've gathered here. Even if you're only going to use it for your personal photos and videos, it's always better to have nice lighting that will simply make everything look nicer, especially in low-light environments. Not everyone needs a ring light for their phone, but for those who do, read on to determine the one that would be perfect for you.
The best ring lights for phones in 2024

Read more
This Android phone is a surprisingly great buy at $100
The Moto G Power 5G and Moto G 5G phones in a render.

If you’ve been shopping the best phone deals or are otherwise looking to save on a new phone, we’d like to turn your attention to Motorola. At Motorola right now you can get the Moto G Android phone for just $100. This is essentially an entry-level phone as smartphones go these days, but this savings of $70 from its regular price of $170 makes it a good consideration and one of the best Motorola phone deals you'll find. It’s not everyday you can grab a new phone for just $100, and you can save even more if you have an eligible device to trade-in.

Why you should buy the Motorola Moto G smartphone
You aren’t going to find the Motorola Moto G ranked among the best phones or among the best Android phones, but that doesn’t mean it’s a phone to avoid. And while we aren’t particularly high on the device in our review of the Motorola Moto G, the price point it comes in at with this deal makes it something worth considering if you’re in the market for a new phone. It comes in navy blue with 32GB of internal storage, which isn’t very much as modern smartphones go, but the Moto G does make up for it with some of its other specs and features.

Read more
This is one of the cheapest 5G phones worth buying today
The Moto G 5G held in a hand with its screen illuminated.

Head straight to the source for one of the best phone deals right now with Motorola selling its Moto G 5G phone for $150 instead of $250. A considerable saving of $100, this might not be the most high-end of phones but it’s ideal if you simply need something cheap but effective. With this 2023 model seeing such a substantial price drop, we’re taking a quick look at what it has to offer and why it might appeal.

Why you should buy the Moto G 5G
You won’t see the Moto G 5G near our look at the best phones. At just $150, that’s hardly surprising. However, it does have the core essentials going for it. It’s powered by a Snapdragon 480+ 5G processor and 4GB RAM which is fine for basic tasks and web browsing. It can handle gaming too if you don’t mind somewhat sluggish load times. Crucially, the phone is 5G compatible so depending on the area you live in, you can enjoy the fastest speeds when browsing online away from Wi-Fi.

Read more