There is an awful lot of 'thank god AT&T was denied by the FCC' and 'this is just AT&T trying to be a monopoly again' as if AT&T's purchase of T-Mobile would somehow result in a monopoly of the sort that AT&T used to have on land lines. Some then go on to say that AT&T is nothing but 'business class wankers with a huge sense of entitlement,' which sounds to me more like the wireless market than the wireless providers.
At the risk of stating the tremendously obvious, a monopoly is when one company controls the whole market. This is very obviously not the case for wireless phones. 'Well,' you might say, 'a handful of corporate juggernauts are no different than a monopoly!' Actually, they're entirely different, because you have several large corporations all competing with each other. Let's look at why we ended up in this situation:
Wireless customers:
- want to take their phones anywhere in their home country and not pay extra. Remember roaming charges? Now you worry about those internationally, but being able to take your phone anywhere in the US and pay the same rate is a huge improvement over where we were ten years ago.
- want to pay the same whether they use 1 gigabyte a month of data or a 100, even though there is only a fixed amount of spectrum available
- have little to no loyalty to their provider: they will switch over to another if they think they can get a better deal, which is not possible in a monopoly
The old Ma Bell of POTS has got nearly nothing to do with AT&T today for the very simple reason that you don't have the same issue where everybody has got to share one set of copper. This issue hasn't gone away entirely, but it's more relevant to the ISP side of AT&T, and that hasn't got anything to do with the T-mobile deal.
AT&T is having a hard time competing because they need more spectrum. T-Mobile is having such a hard time competing that they decided they'd rather just get out of the market than make the necessary investment to compete with Verizon and AT&T. Deutsche Telecom, who owns T-Mobile, decided that an outright sale to their competitor was in their best interests, so they agreed to the sale.
These posts are full of circular reasoning like 'AT&T's service is so shitty, they would just screw up T-Mobile' when the biggest impediment to AT&T improving the quality of its service is more spectrum. Or maybe, like most people, you preferred the 'smaller company' feel of T-mobile; this is natural, but the things wireless customers want (to use huge gobs of data cheaply) are not conducive to smaller companies. If there's been consolidation, it's because we've demanded it, because we feel entitled to the unlimited usage that these companies were foolish enough to offer. Maybe you think that foolishness means your entitlement is justified, but it doesn't change the reality that more usage needs more bandwidth and more bandwidth means more spectrum.
I am an AT&T customer and I fit my own description here. I have no particular loyalty to them. If I got a better deal from Verizon or Sprint I'd probably change. But I'm annoyed that they're losing billions of dollars because the FTC decided that they'd be a monopoly in a market with at least three major competitors and several other minor ones. Instead of paying to get new spectrum and increase their capacity, they're paying through the nose to get nothing. The winners: politicians (who always win in anti-trust matters because of how easy it is to hearken back to the real monopolies of 100 years ago even when the analogies are paper-thin), lawyers, and probably Deutsche Telecom for having the win-win of getting a bucket of money no matter what happened.
And to those who say AT&T was going to raise prices anyway: so what? They can't raise them on you in the middle of your contract and if your contract is up, you (like me) can walk. As a small business owner I don't care a lot for big businesses in general, but I'm sure glad I"m not in the wireless telecom business. As Louis CK says, we're the whiniest, most entitled, most self-important customers on the planet. We bitch when we get a dropped call but we certainly don't feel any gratitude when we're in a pickle and our smartphones find us a cab, a restaurant, or a map. We take it for granted. I would've preferred that my wireless provider gain access to additional spectrum. So long as I have two or three other choices, they most they can ever screw me for is one billing cycle, and they haven't done that yet -- unlike Worldcom, which did all the time back when I first got cell service.