Unless U.S. regulators block it, the merger between AT&T and T-Mobile is going to create a behemoth cellular phone company. While this news may be good news for a few people, it’s certainly bad news for consumers.
The upcoming merger will result in three major wireless carriers in the United States with AT&T, Verizon and Sprint. What will likely happen as a result is higher prices for T-Mobile users who are brought over to AT&T.
Verizon and Sprint customers should be worried too as Sprint, which is the smallest of the remaining three, “may now be forced to find a merger partner.” It doesn’t really matter if Sprint merges with Verizon or AT&T. What will end up happening is we’ll see only two major wireless carriers from which to choose to provide our cell phone services.
This monopoly on cell phone services will lead to higher prices for consumers since there will be only two options: Verizon or AT&T. We should see in the next few days or weeks whether someone opens an anti-trust case against this merger.