The Justice Department is suing to prevent AT&T's proposed acquisition of T-Mobile USA, saying the deal would raise prices and not help customers, despite AT&T's claims it would improve service by giving it more spectrum to deploy for 4G and 3G services. I never took AT&T's arguments seriously; it sits on a lot of unused spectrum despite its cries of bandwidth poverty, and the real issue on spectrum is that it is too carved up by carrier, geography, and technology, so it can't be used flexibly in a fast-changing world. I'd unify all the spectrum and lend it to carriers -- not exclusively license it as done today -- based on actual usage and demand, which would spur meaningful innovation and price competition.
Regardless of the larger issues, the immediate result of the federal action is to kill -- or at least significantly delay -- the buyout of T-Mobile by AT&T. T-Mobile customers can breathe a sigh of relief, as they're less likely to be absorbed into AT&T's world of bad service. But ultimately, T-Mobile is a dying company. Despite its slightly lower prices and a reasonable set of cellphones and Android smartphones, its contract-based customers are fleeing to Verizon Wireless, AT&T, and to a lesser extent Sprint, and its pay-as-you-go customers are looking more and more at the nation's fifth largest carrier, Metro PCS.
The iPhone is a big reason T-Mobile is dying. And if Sprint gains the iPhone in October, as the Wall Street Journal has reported, it will die even faster. Android smartphone sales may be surging, but that hasn't helped T-Mobile. Neither has T-Mobile's fast adoption of HSPA+ networks, the 3G-plus network it misleadingly calls 4G (as does AT&T).
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http://www.infoworld.com/d/mobile-technology/how-the-iphone-crippled-t-mobile-171349