Friday, March 25, 2011

Editorial: AT&T and T-Mobile's merger from manufacturers and consumers perspective




According to AT&T the the acquisition of T-Mobile will bring together the building block of the new world and will be in public interest. How will it affect the hardware manufacturers and customers?

From manufacturer's point of view as things stand right now, the likes of HTC, Motorola, Samsung, LG etc. all have the option to negotiate terms with T-Mobile and AT&T before releasing a new phone. After the merger AT&T will have such a huge market share and monopoly in the GSM market that they will be able to dictate their terms, handpick the type and the number of smartphones they release in a calender year and will most definitely have the upper hand in any kind of negotiations with the manufacturers.

From consumer point of view, right now there are a lot of options available as far as phones and plans are concerned. T-Mobile is known for cheaper plans, and both of them have great phones available in their lineup. What pricing structure will be in affect after the merger? Since AT&T's market share will dramatically increase, will they lower the price on their phones and plans? Or will it be the other way around? It's anyone's guess.

For now the matter is in DOJ and FCC's hand. It will take about a year from it's approval for the transition to take place. Only then will we know for certain how it is affecting the consumers and hardware manufactures.

For further reading AT&T + T-Mobile

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