ZDnet has a very thorough article on this. They seem to be counting on Sprint merging with Verizon after this Merge of At&t and Tmobile and they give very detailed information on what At&t will be like after this merger.
AT&T on Sunday acquired T-Mobile from Deutsche Telekom in a $39 billion deal that will create the largest wireless carrier in the U.S. Almost immediately, AT&T started its campaign to get the deal approved by regulators.
The deal will have some serious ripple effects in the industry. Among the key items:
AT&T and T-Mobile will have a lot of spectrum for expansion.
Coverage for both carriers should improve.
That spectrum will give AT&T a lot of headroom for 4G LTE expansion.
It’s unclear whether regulators will go for this deal—even though AT&T blew Washington a lot of kisses in its statement.
Competitively, Sprint becomes a distant third place player and it’s unclear whether the company has much of a way forward. Sprint has to resolve its relationship for Clearwire and plot a 4G LTE plan. Meanwhile, AT&T and Verizon Wireless were already dominating the market and now Sprint lacks the heft to compete. T-Mobile and Sprint have been rumored to merge.
Indeed, Sprint will need a merger partner and Verizon Wireless may be a potential option. That move would create a U.S. wireless duopoly with a bevy of smaller players.
As Jason Hiner noted earlier, the wireless parts make sense. Both AT&T and T-Mobile operate on GSM and that means the networks can come together faster. In addition, AT&T’s plan to move to LTE can now become T-Mobile’s. AT&T will have about $80 million in total wireless revenue combined with T-Mobile, up from $58.5 billion today. AT&T also needed more wireless spectrum.