AT&T Buys T-Mobile USA for $39 Billion
The deal makes sense because both companies use GSM technology. Sprint uses CDMA and WiMax and would have had a tougher time integrating T-Mobile's assets. The deal would make AT&T the largest carrier in the United States, by a large margin.
At the end of 2010, AT&T had 95.5 million wireless subscribers and T-Mobile had 33.7 million subscribers, for a combined total of 129.2 million subscribers if the acquisition is approved. Verizon Wireless, meanwhile, had 94.1 million wireless customers, but was expected to overtake AT&T with the Verizon iPhone's launch.
That said, AT&T trails Verizon badly in its 4G rollout. While both AT&T and T-Mobile claim HSPA+ is 4G, most call that 3.5G, and Verizon's "still not quite 4G but better" LTE has rolled out in many parts of the nation. AT&T's LTE is not expected to reach trials until mid-2011.
This probably means an end to the T-Mobile commercials in which they mock AT&T's coverage, a video of which can be seen below. Considering the size of the deal, it's likely to face extensive federal scrutiny.