Originally published: May 3, 2011
Last updated: May 3, 2011 - 9:47pm
[Commentary] As the lead analyst for mobile devices at PCMag.com, I have reviewed more than 500 cell phones and other gadgets over the past seven years, and I'm considered an expert on the wireless industry. I believe a merger between AT&T and T-Mobile would result in less competition, fewer choices, higher prices, and less innovation. This merger is not in the interest of American consumers. AT&T's purchase of T-Mobile, AT&T and Verizon would have approximately 80 percent of U.S. wireless subscribers. AT&T claims smaller competitors such as Cricket, MetroPCS and Cellular South are threatening AT&T's business. But MetroPCS, with 8 million subscribers, would be less than 1/16 of the new AT&T's size. The other companies are even smaller. This is an elephant professing a fear of mice.
Additional concerns:
- The merger will result in fewer handset choices for consumers.
- The merger will result in reduced customer care quality and higher plan prices.
- The merger will result in less innovation.
- The merger will result in a monopoly on GSM service.
- AT&T's argument about needing spectrum is disingenuous.
- Holding LTE deployment hostage to a merger is reprehensible.
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