AT&T Turns to Airwaves to Sell Public on T-Mobile Deal

The next wireless ad war is brewing over AT&T's bid to acquire T-Mobile for $39 billion.

AT&T has launched its first ad touting the network improvements that would result from the deal. The recent TV spot claims: "The planned combination of AT&T and T-Mobile will deliver a next-generation mobile broadband experience to 55 million more Americans, many in small towns and rural communities." That refers to the swath of the country that would gain access to AT&T's high-speed 4G wireless Internet service if the now-No. 2 U.S. carrier owned T-Mobile's infrastructure. AT&T isn't the first carrier to use ads to sway public opinion on the acquisition, which is hotly contested, considering it would result in the new U.S. wireless-market leader. Four carriers now control 86.2% of the U.S. wireless market. If AT&T and T-Mobile become one, only three companies would control the vast majority of mobile service.

Sprint, the most vocal opponent to the merger of two main competitors, has been running print ads for weeks against the deal. If AT&T is turning to ads to convince consumers and businesses that the deal makes sense, Sprint could very well be outspent. AT&T is the second-biggest US ad spender, with a 2010 budget of nearly $3 billion -- that's behind only Procter & Gamble. Compare that to Sprint's $1.4 billion in ad spending last year, which was down 6.7% from the year prior.