March 20, 2011

Sprint, T-Mobile Merger.


T-Mobile will be merging it's 3G network with AT&T if it can get through the FCC. T-Moible's  lack of capital and need to upgrade it's network could not back up it's low cost plans and decided to sell in a 25 billion dollar deal. This comes as no surprise in the early stages of 4G networks. Soon 3G will be a much lesser option in a new wireless world that will be pushing HD Video and Cloud based systems. In 5 years it's not going to be enough.

AT&T needed to do something with their network as well. With the increasingly large number of data users the AT&T network has become boged down. Expanding this network with a purchase of another 3G network is exactly what the doctor ordered.

Most in the wireless industry were expecting a merger of T-Mobile and Sprint. This I knew would not work. The companies run on on two different wireless networks T-Mobile on 3G and Sprint on CDMA/LTE. This is a huge deal because the carriers networks would not meld together into one like AT&Ts 3G network would.

One thing for sure is that the 3G network will be a more widespread and more reliable network. It will also be largely in the hands of AT&T which is not a good feeling to have. The merger of the two 3G networks will create a stronger network for consumers and push the technology further. One thing that could get scary is AT&Ts continuing grasp on data boundaries.


 First I must say that I have been a AT&T wireless customer for along time, it's the only wireless provider I have been with. Second I have sold phones by all four providers and can say first hand T-Mobile has excellent people working for them on their service side. I can not say that for AT&T.

As I stated in a earlier post this can mean bad things for unlimited data plans. T-Mobile offered one of the lowest priced data plans customers could get their hands on. The problem was that their service is niter reliable or widespread. If your in an area that has good T-Mobile service then it is a fantastic alternative to other, more expensive providers. With this merger sprint will soon be the only provider of unlimited data plans  in the 4G compliant spectrum.

It's going to be very interesting to see how this plays out and if the FCC will even allow it to happen. The FCC has stated that the wireless communication market does lack competitiveness for the first time in several years.

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