According to recent reports, AT&T’s deal to buy T-Mobile has failed. AT&T has removed their application from the FCC, and has already begun accounting for the money they would have to pay T-Mobile if their deal wasn’t successful. By all accounts, the acquisition is dead in the water.
Many have said that this is a good thing, that keeping T-Mobile alive is better for the consumer. But, I have a slightly more pessimistic outlook on the situation. All the end of this deal means is that T-Mobile is put on life support. They are losing customers and losing money, and even 4 billion dollars of AT&T’s money won’t help them. In order to stay competitive, T-Mobile needs a modern network. Every other carrier has begun investing in an LTE network except T-Mobile, and that’s because they simply can’t afford it. There was a reason T-Mobile was on sale in the first place; T-Mobile’s owner, Deutsche Telekom, knows that the carrier is at a dead end. They don’t have the technology or money to compete with the likes of Verizon and AT&T.
What people don’t understand, however, is that the end of T-Mobile is not a terrible thing. Does it suck that a great, cheap carrier is going to go under? Yes. But that’s how the market works. T-Mobile didn’t adapt fast enough, and their customers began to be taken by Verizon and AT&T on the high end and Cricket and Metropcs on the low end. If T-Mobile goes out of business, their network frequencies will be liquidated and sold off to the remaining American carriers. The irony of the situation is that a likely buyer for their frequency will be AT&T. Deutsche Telekom will count their loses, sell off what remains of T-Mobile, and T-Mobile customers will be lumped into whatever surviving company bought their scraps.
There is a small chance that T-Mobile will survive in the future. This 4 billion could be exactly what they need to get onto their feet and become the great carrier they once were. But there is a much larger likelihood that T-Mobile will fall in the near future, and AT&T some carrier will take them over in the bankruptcy auction. It is sad to see them go, but that’s how the world works.
But that’s just my opinion; I want to know what you all have to say. What happens to T-Mobile now? Could they succeed? Or are they doomed to fail? Am I being an idiot? Is the T-Mobile girl hot? Comments are bellow, voice YOUR opinion!
4 Responses
Time will tell. But whatever happens will be very interesting
The AT&T-Mobile thing isn't necessarily done, yet. AT&T is only going ahead and taking the tax hit, just in case it does fall through. AT&T and DT are most likely going to regather and see what they can do to get their deal done.
(gotta love openid…..)
Here is the rest of my comment:
If it does fall through, then the talk of Sprint/T-Mobile has once again begun to spring up here in the KC Metro area so we'll see how the blocks fall.
One important thing is the fact if you are seeking a student loan you’ll find that you’re going to desire a co-signer. There are various conditions exactly where this is true because you will discover which you don’t make use of a prior credit score therefore, the financial institution requires that you have someone cosign the credit to suit your needs. Excellent submit.