AT&T’s Randall Stephenson said that acquiring T-Mobile will boost network capacity and improve service for devices such as iPhone.
When AT&T announced that it will be acquiring T-Mobile USA, we had also mentioned that the acquisition should help in AT&T and T-Mobile to improve the voice quality thanks to the increased cell tower density and broader network infrastructure.
The acquisition would improve capacity on AT&T’s wireless network by about 30 percent in some of the largest U.S. cities, Stephenson said today at an event at the Council on Foreign Relations in New York. It could also reduce charges for overseas roaming, he said.
The improved capacity will be one of the quick wins from the deal for AT&T as it takes the carrier three years to get approval for a new cell tower in cities like San Francisco.
But in the long term as Om Malik of GigaOM network points out that customers will be the biggest losers:
The biggest losers of this deal are going to be the consumers. While AT&T and T-Mobile are going to try to spin it as a good deal to combine wireless spectrum assets, the fact is that T-Mobile USA is now out of the market.
T-Mobile USA has been fairly aggressive in offering cheaper voice and data plans as it has tried to compete with its larger brethren. The competition has kept the prices in the market low enough. This has worked well for U.S. consumers. With the merger of AT&T & T-Mobile, the market is now reduced to three national players – AT&T, Verizon and Sprint. Net-net U.S. consumers are going to lose.
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